Kerala modifies industrial land allocation scheme – Industry News

Kerala has amended its rules governing the allocation of industrial land and brought it in line with best practices in India to create a more industry-friendly environment and encourage investment. The lease period of land allotted by the Kerala State Industrial Development Corporation and the Kerala State Industrial Development Corporation has been extended from 30 years to 60 years and for investments above Rs 100 crore, land will be allotted for a period of up to 90 years, the statement said. The policy change will also ease the logistics and warehousing sector. The original allottees for logistics and warehousing will be allowed to sub-lease the built-up space constructed by them to another operator, provided that the sub-lease period does not exceed the period of the original lease.

The state government has also come up with a new installment scheme for all investors. Now, the allottee will be required to pay 20% of the total lease premium within 30 days from the date of the ‘notice letter’. The remaining 80% of the lease premium will be paid in 5 equal annual installments, with the prevailing rate of interest being fixed by the agency from time to time.

A special payment scheme has been introduced for investors who make an investment of Rs 50-100 crore and Rs 100 crore and above. Industrial land will be allotted on a 60-year lease basis for projects with a minimum land requirement of 10 acres. For an investment of Rs 100 crore and above, industrial land will be allotted on a 90-year lease basis for projects with a minimum land requirement of 10 acres. In such a case, investors will have to pay 10% of the total land cost upfront. Allottees can opt for a moratorium period of 24 months from the date of transfer. 10% of the earnest money and the remaining 90% of the lease premium can be paid in 9 equal annual installments.

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The new policy also allows allotment of land on lease basis. Projects involving significant investment in renewable/green energy for a short period will be allotted on annual lease basis, provided the minimum investment required is Rs 100 crore and minimum land allotted is 50 acres.