Karnataka to allot land for 99 years lease.

The Karnataka government has decided to discontinue the practice of land allotment to industries on an absolute sale basis. Instead, the land will be allotted on a long-term lease basis for a period of 99 years.

The state cabinet meeting chaired by chief minister Siddaramaiah recently decided to increase the lease period to 99 years from the existing 30 years for all lands acquired and transferred to industrial units from the Karnataka Industrial Areas Development Board (KIADB). The new system will help the state attract more investment, a senior minister said.

The government would also draft stringent norms to prevent diversion of KIADB industrial land for other purposes like constructing marriage halls, malls and other real-estate projects, he said.

'Henceforth, the KIADB will not sell land to any industry absolutely. It will only provide them on a lease basis. This is being done to prevent misuse of land by the allottees. The allottees cannot use the land for any other purpose other than setting up an industry. In such cases, the government will take back the land,' the minister told Business Standard.

BS