The State Cabinet on Wednesday decided to increase the lease period of Karnataka Industrial Areas Development Board (KIADB) lands/plots from 30 to 99 years. This is expected to give a fillip to industrial activity in the State.
A Cabinet meeting chaired by Chief Minister Siddaramaiah here decided to allot KIADB plots to entrepreneurs only for setting up industries.
A Cabinet Minister told The Hindu that the Cabinet had decided to discontinue the practice of giving absolute sale deeds to industries. The decision was taken in the wake of companies, industries and individuals selling land allotted to them after the sale deeds were given. The government’s intention was to protect KIADB land, which should remain with the State.
A few months ago, the government had decided to allot KIADB lands to entrepreneurs on lease for 30 years. As there were no takers for land/plots for the 30-year lease period, the Cabinet decided to increase the lease period to 99 years.
Guidelines to be drafted
Banks and financial institutions had also been denying loans to entrepreneurs for a lease period of 30 years. Strict guidelines would be drafted to prevent diversion of KIADB land for construction of marriage halls and other buildings, the Minister said. Industrial associations had not demanded the extension of the lease period. Granting KIADB land on a long-term lease would benefit industry. Instead of investing huge sums of money in buying land, industries could use the same money as working capital.
“We have decided to increase the lease period to give a boost to industrial activities in compact industrial zones,” the Minister said.
The KIADB has already handed over absolute sale deeds for several thousands of acres to many industrial units in Bangalore and other parts of the State.
The Cabinet has taken a decision to pay an additional Rs. 100 for a quintal of sugar procured from two factories: Mysugar in Mandya and Mysore Paper Mills in Bhadravathi. The Minister said sugar would be procured at Rs. 2,900 per quintal and it would be distributed through the public distribution system to below poverty line (BPL) families.
Last year, the commodity was procured at Rs. 2,800 a quintal. The Food and Civil Supplies Department required 1.2 lakh tonnes of sugar a year for distribution under the PDS.
The two factories would supply around 70,000 tonnes of sugar a year and the department would purchase the remaining quantity in the open market.
Sugar is being sold to BPL families at Rs. 32 per kg.
