Land allotment on 99 yr lease is anti-MSME, KASSIA tells Karnataka govt
Updated: Jul 24, 2014 01:23:59pm
Bengaluru, Jul 24 (KNN) The State Government’s decision to give KIADB land on 99-year-lease basis rather than sale is hostile to the interests of the small scale industry and will adversely affect the State’s MSME growth as the SSI sector contribution’s is next only to agriculture, said Karnataka Small Scale Industries Association (KASSIA).
Reacting strongly to the state government’s decision, “The allotment of KIADB (Karnataka Industrial Areas Development Board) land henceforth on 99-year-lease is a retrograde measure and anti-small scale industry,” said President KASSIA, Chidananda M Rajamane in an official release.
“Land allotment should continue to be on the basis of 10-year-lease cum sale as earlier because land is the only asset that remains with the small entrepreneur and the only insurance against any adverse eventuality,” he added.
While conceding that the decision was taken with good intentions, namely, to prevent the poaching of industrial land by real estate sharks, Rajamane said the remedy could turn out to be worse than the disease.
“A majority of the available industrial land is given away to big industrial houses leaving only a very small percentage to the ordinary small entrepreneur whose requirement is invariably limited to a few acres of land. The big players often use the land allotted for speculative purposes but in an effort to stop such gross misuse of land by large industries, the Government cannot take away the last remaining semblance of succor – in the form of the sale deed issued by the KIADB – available to the small entrepreneur,” he said.
At the very least, the Government should consider allotment of KIADB land on 10-year-lease rather than 99-year-lease for the MSMEs up to 5 acres of land, or exempt the applicability of 99-year-lease to the MSME sector, said KASSIA. (KNN/ES)
Reacting strongly to the state government’s decision, “The allotment of KIADB (Karnataka Industrial Areas Development Board) land henceforth on 99-year-lease is a retrograde measure and anti-small scale industry,” said President KASSIA, Chidananda M Rajamane in an official release.
“Land allotment should continue to be on the basis of 10-year-lease cum sale as earlier because land is the only asset that remains with the small entrepreneur and the only insurance against any adverse eventuality,” he added.
While conceding that the decision was taken with good intentions, namely, to prevent the poaching of industrial land by real estate sharks, Rajamane said the remedy could turn out to be worse than the disease.
“A majority of the available industrial land is given away to big industrial houses leaving only a very small percentage to the ordinary small entrepreneur whose requirement is invariably limited to a few acres of land. The big players often use the land allotted for speculative purposes but in an effort to stop such gross misuse of land by large industries, the Government cannot take away the last remaining semblance of succor – in the form of the sale deed issued by the KIADB – available to the small entrepreneur,” he said.
At the very least, the Government should consider allotment of KIADB land on 10-year-lease rather than 99-year-lease for the MSMEs up to 5 acres of land, or exempt the applicability of 99-year-lease to the MSME sector, said KASSIA. (KNN/ES)
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