Following requests from entrepreneurs and investors, the Cabinet on Saturday decided to grant plots to industrial projects on a 10-year lease-cum-sale basis. They can sell the property after the lease lapses. The rider is that only projects that have completed formalities before March 28, 2013, are eligible for the land under these terms, Minister for Law and Parliamentary Affairs T.B. Jayachandra said. This would benefit about 300 industrial projects, particularly small-scale industries.
As per the Industrial Policy guidelines for 2014-18, all fresh projects would be allocated 99 years of lease, and there is no provision for sale. Earlier, the lease period was only 30 years and the new policy extends it to 99 years in a bid to woo investments. However, the Karnataka Small Scale Industries Association (Kassia) had opposed the 99-year lease period, arguing that it will adversely affect the State’s MSME growth in the SSI sector.
Several industrial projects that obtained lease-cum-sale deeds have morphed into marriage halls in West of Chord Road in Rajajinagar in Bengaluru.
