Govt bans use of KIADB land for non-industrial purpose

 The government has further tightened the land use and allotment system for industrial purpose. After doing away with lease-cum-sale deed system, the government has decided to ban conversion of the Karnataka Industrial Areas Development Board (KIADB) plots for any other use in the State.

The government in its new industrial policy – 2014-19 released on Friday stated that industrial land will not be converted. 

The proposed rule, which will come into effect after the government issues an order to this effect, is also applicable to industrial lands allotted in the past -- irrespective of whether sale deed has been executed or not.

“Under no circumstances change of land use will be permitted or recommended to any local planning authority and no local planning authority shall permit the change of industrial land use. Suitable rules will be framed to this effect and local planning authorities will be advised to maintain KIADB acquired areas as Industrial Zones in their Master Plans revised from time to time,” the new policy stated.

The KIADB has so far developed 148 industrial areas, covering about 40,000 acres land in the State. Allottees in many old industrial areas have sold their lands and they are being used for non-industrial purposes after converting their land use. 

For instance, several of industrial plots in Rajajinagar industrial area, Bangalore, are being used as marriage halls. But once the new rule comes into effect, owners of industrial lands (those which are not converted yet) will not be able to use it for non-industrial purposes.

Sale deeds

Commerce and Industries Additional Chief Secretary K Ratna Prabha said that people who were allotted KIADB land have been misused it in the past. 

Sale deeds have been executed even to those who have completed only 50 per cent of the project. In many instances, KIADB lands have been used for building residential apartments. 

The government has, therefore, decided to ban conversion of industrial lands, she pointed out.

The government has also decided to strip city corporations, municipalities and panchayats of their power to approve construction plans in industrial areas. 

Instead, the power will be delegated over either to the KIADB or the Karnataka State Small Industries Development Corporation (KSSIDC).

This, too, has been done with an aim to ensuring that industrial lands are not misused. An amendment will soon be brought into the Karnataka Municipal Corporation Act, the Karnataka Municipalities Act and the Karnataka Panchayat Raj Act, official sources said.

Property tax collection

This apart, it has been decided to frame a uniform guideline to fix property taxes and development cess for industrial units.And the KIADB or KSSIDC will be authorised to collect the tax to ensure that there is no evasion. 

Currently, local panchayat bodies have powers to fix taxes and development cess on industries located in rural areas, sources said. 

However, in a welcome move the new policy has offered to increase the Floor Area Ratio (FAR) in all industrial areas. The move is expected to reduce the pressure on the government to acquire more land for industrial purpose. 

The average ground coverage of construction will be increased from 45 per cent to 70 per cent, the policy stated.

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