State Government to reclaim unused industrial land and sites

State Government to reclaim unused industrial land and sites

January 18, 2020

Plans to create Land Bank for future investments

Bengaluru / Mysuru:  In the backdrop of investment proposals worth billions of rupees getting delayed over issues including availability of land and in a bid to mop up land resources, the State Government is planning to reclaim unused industrial land and sites from investors and industrialists. 

The State Government’s move is as part of its efforts to create a large land bank for future investments. The Industries Department plans to insert a clause in this direction in its new industrial policy which will be announced very soon, said Industries Minister Jagadish Shettar in Bengaluru yesterday. 

Land for fresh projects: The Government will reclaim industrial plots lying unused even after years of allotment to private companies. A large number of allottees fail to set up their industrial units, while holding possession of land, which is now a scarce commodity in the wake of rapid urbanisation. The forfeited land would now be allotted afresh to projects, Government sources said. 

Shettar said the Government was currently undertaking a survey of unused land across the State. The Government has also identified 30,000 acres of land to build a land bank and already issued final notification for acquisition of 12,000 acres across the State. 

Encouraging Tier-II cities

The Government intends to keep the land ready ahead of the proposed Global Investors Meet being held from Nov. 3 to 5, 2020 in Bengaluru. “We are encouraging industries in Tier-II cities as Bengaluru is congested. We are developing land banks in various Tier-II cities such as Hubballi-Dharwad, Belagavi, Kalaburagi, Mysuru and Chamarajanagar,” Shettar said.

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Speaking to Star of Mysore in this regard, Joint Director of District Industries Centre (DIC) D. Lingaraju said that as per the agreement signed by the Government when the land is handed over to industrialists, industry units must be set up at the plots within two years of land handing over. 

Unused land in Mysuru 

“Ten years after the industrial plots are handed over, title deeds are given. There are instances of industrialists not setting up units even after 10 years and we have turned on the heat on them by seizing the land. Such unused land can be found at Hebbal Industrial area, Hebbal Second Stage, Metagalli, Hootagalli and Koorgalli,” he said. 

Industrial plots are usually distributed by Karnataka Industrial Area Development Board (KIADB), District Industries Centre and the Karnataka State Small Industries Development Corporation (KSSIDC). “Many lands have been kept unused since over 20 years and there are instances of some plots being sold to other parties for a higher price. Lapses have occurred when title deeds are issued within two years. Corrective measures have to be initiated,” he said. 

KIADB report

As part of the Government’s plans, the KIADB is preparing a report on unused land and the report will be submitted to the Government. As part of the recovery, notices will be served on investors who are holding Government-allotted industrial land without putting it to any use. They have to surrender the land or pay a hefty penalty, in case the Government decides to penalise the defaulters, sources said.

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The land surrendered will then be allocated to needy investors because the State doesn’t have enough free hold land for industrial use, even as it is in the process of revival after the economic slowdown, sources added.


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