Move to identify genuine investors
Setting a clear pattern for utilising the land leased out for industrial purposes, the Industries Department has ordered to rescind the lease pact of plots which remain unutilised for six months.
As a follow-up to the Emerging Kerala summit held in Kochi recently, the Industries Department has laid out a structure for utilising the land allotted for starting new ventures.
On approving a proposal, the entrepreneur should commence work within six months, failing which the government will cancel the pact and take back the land.
This is being cited as a move to identify genuine investors and weed out those who retain government land on flimsy grounds.
The government has ordered to identify such cases and report them within three months. Companies and individuals possessing vast tracts of government land on the premise of launching inconceivable projects will be forced to relinquish their lease right.
Generally, the lease period for a project has been fixed at 30 years, but it would be amended depending on the scale of investment and the job opportunities it is bound to generate.
Multi-phased projects with substantial investment would be exempted from such norms.Official sources told The Hindu here on Thursday that the lease pact with an entrepreneur will come into force only on the commissioning of the project.
An Investment Promotion Council headed by the Chief Minister and consisting of other Ministers and prominent industrialists has come into being.
In order to overcome the problems thrown up by inter-departmental squabbles which impede new projects, an Investment Clearance Board has also been constituted.
The board headed by the Chief Secretary has the Additional Chief Secretary, Industries, as convener.
Kerala State Industrial Development Corporation Managing Director, Principal Secretaries to Finance, Revenue, and Environment Departments, and the Law Secretary are board members.
The board will evaluate each project and the Secretaries of the departments concerned will give approval.
The approval will be deemed as final clearance and all departments will be bound to abide by the board’s order.
Complementary amendments have been mooted to the Single Window Clearance Act. The board will be meeting twice a month and on submitting a project, clearance should be given within three months.
The board has been empowered to summon secretaries and officials who are not members of the board for seeking clarifications before giving the go ahead for a project.
The board will apprise the council of its decisions from time to time. Appeals on the board’s decisions will be placed before the Cabinet for final decision.
Lease pact of plots remaining unutilised for six months will be rescinded Action in such cases within three months
Lease pact of plots remaining unutilised for six months will be rescinded
Action in such cases within three months