MSMEs to get KIADB land on 10-year lease-cum-sale basis

MSMEs to get KIADB land on 10-year lease-cum-sale basis

Now, micro, small and medium industries will get Karnataka Industrial Areas Development Board (KIADB) land on a 10-year lease-cum-sale basis for land up to two acres.

Land on sale-cum-lease basis is being provided by the KIADB to Single Unit Complexes on a 15-year sale-cum-lease but allotment of land for micro, small and medium enterprises (MSMEs) came with a 99-year lease clause.

Briefing reporters after the Cabinet meeting, Law Minister T B Jayachandra said the required rules will be amended by withdrawing the 99-year lease clause for land allotment to industries.Industry and trade bodies had been opposing the 99-year land lease allotment stating that it was impacting access to credit.

The Cabinet gave approval for providing one-time grant of Rs 400 crore for land acquisition by the KIADB for establishing the Tumakuru Industrial Node (TIN) at Vasanathapura, Tumakuru along Chennai-Bengaluru-Chitradurga corridor. It is proposed that TIN will be an export hub drawing investments of Rs 50,000 crore and providing employment to 2.2 lakh people.

The Cabinet also decided to provide Rs 15 crore for organising “Vendor Development and Investors Summit” at Bangalore International Exhibition Centre in Bengaluru in October/November 2017.

Meanwhile, M S Shankar, convener, Fight of Rera, Karnataka chapter, said Rera, approved by the state government, is totally against the suffering homebuyers of ongoing projects. The Cabinet has approved a clause of excluding the projects from Rera registration, that were 60% completed,  are ultra vires snatching the rights given to the homebuyers by Parliament. The state government has no right to go against the Act, he said.

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