Karnataka: Purchasing industrial land to get simpler

Chief Minister B S Yediyurappa on Saturday announced a policy change that will allow investors to purchase land from farmers in a 30-day time frame, seeking to address a major concern of industrialists seeking to buy land.

The CM, who just returned from the World Economic Forum in Davos, also claimed that he had inked several agreements that would bring “thousands of crores” of investments into the state.

Yediyurappa said the government will amend Section 109 of the Karnataka Land Reforms Act, which deals with investors or industries purchasing agricultural land directly from farmers.

“Once a proposal to purchase land for industrial purposes is cleared by the State High Level Clearance Committee and the State Level Single Window Clearance Committee, the process under Section 109 has to be completed in 30 days. If not, it will be deemed permitted,” Yediyurappa said.

“At present, there’s a 60-day process, which we are reducing to 30 days,” he said.

Delay in the purchase of land is the common complaint industries have, the CM said, adding that several investors he met at Davos had raised the issue.

The government has also decided to introduce a 30-day limit to authorise the conversion of agricultural land for non-agricultural or industrial purposes.

“The process will be simplified online for anyone who owns an agricultural land and wants to use it for non-agricultural purpose,” Yediyurappa said. “And to boost industrial activity, if applications seeking conversion of land use are not cleared within 30 days, it will be ordered as deemed converted.”

‘Historic visit’

Between January 20-23, a Karnataka delegation led by Yediyurappa held talks with over 40 companies and industrialists in Davos, showcasing investment opportunities in Karnataka.

“It was a historic visit, in that we have inked agreements that no other state has,” Yediyurappa said.

“You may ask how much money will flow into the state following my visit to the World Economic Forum. That’s simply not possible to say. But thousands of crores are expected to flow in,” Yediyurappa said.

The chief minister said that UAE-based Lulu Group had committed to invest Rs 2,000 crore in the logistics sector to help farmers with the movement of fruits and vegetables they grow.

According to Large and Medium Industries Minister Jagadish Shettar, Karnataka has earmarked about 30,000 acres for industrial use.

“Of this, about 12,000 acres is ready to be made available for industries,” he said.

Asked about India’s economic slowdown and its effect on investments in the state, Shettar said the slowdown was temporary. “As a state, Karnataka has maintained a GDP of 9-9.6%,” he said.

The government is encouraging industries to invest outside Bengaluru, Yediyurappa said.