State govt. announces modifications on land disposal regulations for industrial land
Amendments aim to create a more industry-friendly environment, fostering investment and growth in Kerala’s industrial sector, says Rajeeve
The State government on Saturday announced significant modifications to the Land Disposal Regulations (LDR) governing industrial land allocation by the Kerala Industrial Infrastructure Development Corporation (KINFRA) and Kerala State Industrial Development Corporation (KSIDC).
Speaking at a press conference here on Saturday, Industries Minister P. Rajeeve said that the amendments are aimed at creating a more industry-friendly environment, fostering investment and growth in Kerala’s industrial sector.
As per the Government Order, the lease period has been increased from 30 years to 60 years across the board. However, for the investments of ₹100 crore and above, land will be allotted for a period not exceeding 90 years. For logistics activities and sub-leasing of warehouse facilities, the original allottees may sublease the built-up space constructed by them to another operator provided the period of sublease shall not exceed the period of the original lease period.
New terms
Under the new payment terms, the allottee is required to pay 20% of the total lease premium (LP) within 30 days from the date of the letter of intimation. The remaining 80% of the lease premium will be paid in 5 equal yearly instalments, with the prevailing interest rate fixed by the agency from time to time.
Projects involving significant investments in renewable/green energy for a short period will be allotted land on an annual rental basis, provided the minimum investment required is ₹100 crore and the minimum land allotted is 50 acres. In cases of death or incapacity of the allottee, reconstitution with legal heirs can be done without additional cost. At present, 100% of differential lease premium should be paid by the allottees at any time of exit, but now the entrepreneurs who desire to exit and transfer to a prospective entrepreneur have reduced differential LP payments, enhancing asset appreciation.
Units functioning for less than 5 years from the date of commencement of commercial production need to pay 50% of the differential lease premium. For mergers or amalgamations approved by the court/NCLT under the same management, a 1% differential LP is applicable.
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