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The state government is currently in the process of refining its proposed land allotment policy for industries to create a more favourable environment for potential investors. This development comes after the state cabinet recently approved the new land allotment policy in a meeting led by Chief Minister YS Jagan Mohan Reddy. However, the cabinet has directed the industries department to prepare a comprehensive plan for further discussion and consideration.
Industries secretary N Yuvaraj clarified that the cabinet's discussion focused on the land allotment policy as outlined in the initial agenda, with no mention of the three proposed options. He emphasized that no decisions had been made regarding option three, as it had not been presented for cabinet approval.
Despite this clarification, Yuvaraj did acknowledge that the cabinet deliberated on the prospect of allotting land to industrial units based on sale agreements or sale deeds, rather than the current lease-based model. Notably, the industries department had developed three distinct options in the draft policy for land allotment to large industries. In contrast, MSME industries were presented with only two options, while a third option was proposed for mega industries requiring over five acres of land.
Sources revealed that the department chose not to present the entire draft to the cabinet due to objections from senior officials. Initially, the department floated the third option, which involved executing a sale deed if the entrepreneur required the entire land for a project being executed in phases, subject to stringent conditions. Additionally, the proposal included a 20% premium on the allotted price, contingent on project timelines outlined in the DPR submitted, evaluated, and approved by the APIIC for phased project implementation.
The department also suggested issuing a final No Objection Certificate (NOC) upon successful implementation of the project in all its phases. However, the new clauses were not presented to the cabinet for clearance, as the department aimed to refine specific aspects of the policy before seeking approval.
The state government's efforts to create a more investor-friendly land allotment policy indicate a commitment to attracting industrial investments and fostering economic growth in the region. Further developments on this policy are anticipated as discussions continue.
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