Bengaluru: The Industries Department has introduced “10-year lease-cum-sale” of Karnataka Industrial Areas Development Board (KIADB) land allotted for industries. The State Cabinet recently cleared a proposal to amend the KIADB provisions where clear titles (sale deed) of the allotted land will be handed over to industrialists once the allottees successfully run the project for two years.

Addressing concerns of industries and reluctance of many investors to make investments in the State due to the existing policy, Industries Minister Murugesh Nirani said KIADB in future will allot all land to private industries/institutions on 10-year lease-cum-sale basis. “Rules are being framed for the new scheme and a full-fledged Government Order is expected to be issued in a few weeks,” Nirani said in a release.

Before bring up the issue at the Cabinet meeting in Belagavi, the policy had been discussed threadbare with senior officials of the Industries Department and other stakeholders last August and September.

Several major private companies were reluctant to set up industries as KIADB used to allot land beyond two acres of area only on 99-year lease basis. There was never a provision for sale of the allotted land. The earlier clause was posing difficulties for industries to obtain loan and capital inflow from banks and financial institutions and also to mortgage the leased land. This had hampered the flow of investments into the State, the release said.

Through the proposed amendment, if any industrial unit successfully runs for two years soon after the land allotment, they will qualify for getting clear sale deed title from KIADB without waiting for 10 years. The department through its officials and experts will monitor the 24-month balance sheet of the industry that claims to have run the project successfully.