The amendment made by the Government of Karnataka regarding the 99 years Lease-Cum-Sale.

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New Delhi, August 27, 2017: FKCCI welcomes the amendment made by the Government of Karnataka regarding the 99 years Lease-Cum-Sale

FKCCI in its Pre-Budget Memorandum submitted to the Hon’ble Chief Minister had made a representation opposing the 99 years lease-cum-sale. Its withdrawal had become a long standing demand of the Federation.

The Hon’ble Chief Minister in his Budget Speech 2017-18, vide Para 404 announced that “instead of the existing 99 year lease basis, industrial land/site will be distributed up to 2 acres to Small and very Small entrepreneurs by the Karnataka Industrial Area Development Board and Karnataka State Small Industries Development Corporation on 10 year lease/ Sale Basis.

The promise of the Hon’ble Chief Minister was ensured vide Government Order No.CI 105 SPI 2017, Bengaluru dated 11-07-2017 stating allotment of land /shed by KIADB & KSSIDC on 10 years lease-cum-sale basis instead of 99 years lease up to 2 acres of land to Micro and Small Enterprises.

The allotment of land up to 2 acres on lease-cum-sale basis to Micro & Small Enterprises only, will curtail the development of Small Enterprises who would not be able to develop into Medium Enterprises and consequently stunting the growth of Small Enterprises. There is a need to remove the restrictions on the allotment of 2 acres on lease-cum-sale basis to Micro & Small Enterprises and to promote Medium Enterprises.

FKCCI was constantly pursuing with the Government for removal of the 99 years lease. The current amendment made by the Government will help sale of Industrial land to MSMEs. Moreover ownership of the industrial land provides necessary security to avail funds from the banks.

FKCCI once again appreciates the Government of Karnataka for its Industry friendly measure.

Corporate Comm India(CCI Newswire)

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