Mixed response to KIADB land lease extension

The State govt. has decided to extend the lease period from 30 to 99 years

July 26, 2014 12:12 am | Updated 12:12 am IST - Bangalore

The State government’s decision extending the lease period of land/plots allotted by the Karnataka Industrial Areas Development Board (KIADB), from 30 to 99 years, has evoked mixed response from trade and industry bodies.

While those representing primarily large and medium enterprises hailed it as one that would go a long way in promoting rapid industrialisation, the Karnataka Small Scale Industries Association (KASSIA) said it was “a retrograde measure and anti-small scale industry.”

Bangalore Chambers of Industry and Commerce (BCIC) president A.N. Chandramouli said the move was timely, a fillip to the industry, would facilitate more foreign investments and prevent flight of investment of multinational companies from Karnataka. The BCIC, he said, had made representations in this regard.

Ninety-nine years was a long-term permission definitely giving a feel of some sort of ownership to the industry, he said in a press release. BCIC senior vice-president Anuj Sharma called for the land allotment procedures to be made more transparent and speeding up of the process.

‘Only asset’

Extension rather than sale is “hostile to the interests of small-scale industry” and will affect the growth of micro, small and medium enterprises (MSMEs), KASSIA president Chidananda M. Rajamane said in a press release. Land was the only asset that remains with the small entrepreneur and the lone insurance against any eventuality, he added.

Agreeing the decision was taken with good intentions of keeping real estate sharks away, he said a majority of the available industrial land was given to big industrial houses. The big players, he alleged, often use the land allotted for speculative purposes. To stop such misuse, the government cannot take away the succour — sale deed issued by the KIADB — available to the small entrepreneur. The government should exempt the applicability of 99-year lease to MSMEs or consider allotment on a 10-year lease.

‘Elated’

Pointing that industry is elated over the Cabinet decision, Federation of Karnataka Chambers of Commerce and Industry president S. Sampathraman said land, up to 5 acres, for MSMEs should be only on lease-cum-sale basis. The federation looked forward to abolition of trade licence as assured by Chief Minister Siddaramaiah, he added.

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