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AP MSMEs hail outright sale of land by government

Updated: Jun 11, 2016 08:59:59am

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)


  1. zulkharnine sultana
    zulkharnine sultana 28/06/2016 3:47 PM

    99 acres land lease is good proposals,in this case bank should not insist collateral security from AP MSME.

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  2. msrm
    msrm 11/06/2016 3:27 PM

    There should be openness in allotting the land and fixing the price to private people/firms. Quantum of land allotment should be decided based only on actual needs of the project /firm and not to the people with an eye on future real estate business. Govt.appears to have allotted 200 acres of land to a private engineer- ing college.If not for ulterior motives, why a engineering college requires 200 acres of land that too in capital city prime area.Make a study and compare, how much land is used by the prestigious national institutions like IIMS,and Universi- ties. 50 Acres enough for any educational institution. 50 lakhs /acre is the selling price Govt is trying fix which is too low and un- logical. The market price is 1.5 crores/acre in that area and only 1/3 of the land area can be got back after surrendering to CRDA and allotments by them. Guidelines should be firm, clear and simple to follow. No room should be for ambiguities and there by legal litigetions. Govt.should go for open biddings for these sales.

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