KIADB not letting out land to industries

Q: What is the reason that KIADB is not letting out land to industries?

Dwarkesh,

30th September 2013

Real estate News in Bangalore

kiadb

possession of land

karnataka industrial areas development board

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Replies (3)

What will be the advantages and disadvantages KIADB is not letting out land to industries?

Dwarkesh,

30th September 2013

Comment

If the KIADB board offers land on long-term lease, it will put the industries on a lucrative end. Getting land on long-term lease will prevent the companies from buying the plot and investing huge sums of money. The same money could be used in meeting the working capital requirements. This will help the companies to rise several notches up.

Bala Subramanium, Bangalore

30th September 2013

However, according to the Karnataka Chambers of Commerce and Industry, leasing of land option will not yield fruitful returns for an industry. Possession of land is an important aspect to raise finance for an industry and with leasing, fixed and working capital will go for a toss. In addition to it, leasing of land will rule out the factor of security for lenders. Upcoming projects will face problems to raise debt from institutions if land is acquired on lease and will have an overall adverse impact.

Bala Subramanium, Bangalore

30th September 2013

According to government reports, the practise of allotting ownership of government land to individual owners is not carried out anywhere in the nation. Furthermore, even in Karnataka, no other department offers sale deeds to the leasee. According to officials of commerce and industries department, land will be offered to industries on lease for a period of 30 years and renewed later on

Kanthi Sridhar, Bangalore

30th September 2013

Comment

The Karnataka Industrial Areas Development Board has passed on absolute deeds for around 11350 acres of land to nearly 7600 industrial units. Further market data confirms that the government has offered sale deeds to nearly 2418 units in Bangalore, majority of which belongs to MNC and IT companies.

Bhargav Dev, Bangalore

30th September 2013

The Karnataka Industrial Areas Development Board (KIADB), with its latest move has turned out to be the talk of the town, by deciding not to hand over land parcels to industries. Instead, land will be offered to industries on lease for 30 years. The major step taken by the Karnataka government is all set to bring about a change, by putting a nip in the bud of offering sale deeds to different industries that allows them to own government land.

Bhargav Dev, Bangalore

30th September 2013

Comment

The primary objective of KIADB behind the new policy is to protect the government land and keep it under the jurisdiction of the state. The change comes in the wake of companies, individuals and industries selling their allotted land to once sale deeds were issued

Srinivas Rao , Bangalore

30th September 2013