The state government is contemplating to fine tune the proposed land allotment policy for the industries to make it more investor- friendly.Although the state cabinet cleared the new land allotment policy at its recent meeting chaired by the chief minister YS Jagan Mohan Reddy, it had directed the industries department to ready the comprehensive plan on the issue.
“The cabinet has discussed land allotment policy in accordance with the agenda placed before it. It had not discussed the three options. Especially, we have not placed any agenda before the cabinet in terms of option three and hence no decision was taken with regard to it,” clarified industries secretary N Yuvaraj.
He, however, admitted that the cabinet deliberated on the allotment of lands to industrial units on sale agreement / sale deed basis in place of present lease-based model.
Interestingly, the industries department readied three options in the draft policy for land allotment to big industries.
While there are only two options for MSME industries, the department proposed the third option for the mega industries which required more than five acres of land.
Sources said that the department had backtracked from placing the entire draft before the cabinet following objections from the senior officials.
During the initial discussions, the department floated the third option according to which it wanted to execute the sale deed if the entrepreneur wanted it for the entire land (while the project is being executed in phases) before the implementation of the project, with stricter conditions.
It had also proposed to collect a premium of 20% on allotted price duly incorporating the timelines of the project as per the DPR submitted, evaluated and approved by the APIIC for execution of the project proposal in phases prior to the completion of the project.
It had also proposed to issue final NOC soon after successful implementation of the project in all the phases.The department, however, did not place the new clauses for the cabinet clearance with a view to fine tune certain clauses, said sources.