Kerala has modified its regulations governing industrial land allocation and bring it in line with best practices across India to create a more industry friendly environment and foster investments. The lease period of land allocated by Kerala State Industrial Development Corporation and Kerala State Industrial Development Corporation has been extended to 60 years from 30 years across the board and for investments over Rs 100 crore and above land will be allotted for a period of up to 90 years, a statement said. The policy change will also facilitate the logistics and warehousing sector. The original allottees for logistics and warehousing will be allowed to sublease the built-up space constructed by them to another operator provided the period of sublease shall not exceed the period of the original lease period.
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 “letter of intimation”. The remaining 80% of the lease premium will be paid in 5 equal yearly installments, with the prevailing interest rate fixed by the agency from time to time.
Special payment scheme has been introduced for those investors who bring investments of Rs 50 -100 crore and Rs 100 crore and above. Industrial land will be allotted on a lease basis for 60 years for projects with a minimum land requirement of 10 acres. For investment of Rs 100 crore and above industrial land will be allotted on a lease basis for 90 years for projects with a minimum land requirement of 10 acres. In this case investors will be required to pay 10% of the total land cost upfront. Allottees can opt for a moratorium period of 24 months from the date of remittance 10% earnest money and remaining 90% lease premium can be paid in 9 equal yearly installments.
The new policy also allows for allocation of land on rental basis. Projects involving significant investments in renewable/green energy for a short period will be allotted land on an annual rental basis provided minimum investment required is Rs 100 crore and minimum land allotted is 50 acres.