AP MSMEs hail outright sale of land by government

Vishakhapatnam, June 11 (KNN) The allotment of land for industries, which was till recently mired in uncertainty due to the 99-year lease proposal, is happening much faster after the government’s decision to give land on outright sale basis.

Talking to KNN, the Vice President of Andhra Pradesh Chambers Of Commerce and Industry Federation (APCCIF), Sambhasiva Rao said that, "As an MSME entrepreneur, you require the money to take the land, for taking the land on lease basis; Government is taking the free value of the things as a rent, you never be the owner of the land. If I want to go for a loan banks want collateral security that is becoming the burden for the entrepreneurs."   

It was considered a problem for the government too, as the lands will be locked with the lease-holders, prohibiting any deal thereof before expiry of the agreement, said the Vice President.

“We welcome the proposal on behalf of the AP Chambers”, he added.

As part of the New Industrial Policy, the Government of Andhra Pradesh has originally thought of leasing out the land for 99 years, but there were few takers mainly because the entrepreneurs were wary of the financial implications of paying the lease rent for so long in the event of their closure due to bankruptcy or any other reason. (KNN Bureau)