Friday, June 27, 2008

Slack firms may lose land

DH News Service, Bangalore:

The State Government is all set to come down heavily on private firms which have failed to establish their industries even years after lands were allotted to them...

Minister for Large and Medium Industries Murugesh R Nirani, who held a meeting with officers of Karnataka Industrial Area Development Board in Bangalore on Thursday, directed the officers to serve notices to those firms which have failed to open industries despite being in possession of the land.He said many firms have purchased lands years before. But there has been no progress when it comes to setting up industries. “KIADB allotted 100 acres of land to a private firm to set up an agro food park in Bagalkot, my native district, two years ago.

But so far the firm has not done anything except fencing the land. What is the point in sanctioning land if the project does start on time and serve the purpose,” he wondered.KIADB allots land to the entrepreneurs with a lease-cum-sale agreement. As per the agreement the allottees should commence the project within two years after the allotment of land. If the allottees fail to begin the work they can appeal before the board for extension up to three months. If the allottees does not begin the work even after three months the Board will serve notice asking why the land should not be withdrawn. If the reply is not satisfactory the board will withdraw the land terminating the lease period.

The purchasers or entrepreneurs enjoy the ownership of the land only for 10 years after the allotment. There is provision for taking back the land under the KIADB Act and the same would be enforced strictly. “The objective of the department is to attract more investment and generate employment in the state. If those allotted do not begin the project then the purpose is not served. I have asked the officers to prepare a list of such companies. The government will ask them to expedite the process. Those failing to act, the government will withdraw land from them and allot the same to those who come forward to set up industry with genuine proposals,” he said.

Talks onThe Minister also held discussion with entrepreneurs who had sought approval to set up small scale industries, each incurring investment up to Rs 50 crore. Entrepreneurs who have sought approval to set up industries in Bangalore, Belgaum and few districts of North Karnataka took part in the meeting. Nirani also said that as many as 35 applications expressing interest to establish small scale industries are pending before the Udyoga Mitra. The entrepreneurs will appear before the screening committee.

By the second week of July the State High Level Clearance Committee headed by the Chief Minister will accord final approval for projects on the basis of recommendations made by the screening committee.Easy process“As an industrialist I have the first hand experience how entrepreneurs struggle to get approval for projects. The procedure is so long that one may lose interest by the time he gets approval,” he said. The government has planned to introduce revised industrial policy in the next 3 months. It will introduce easy process to get clearance and also allotment of land through KIADB. “Objective is to attract more investors and provide more jobs to locals. The government will introduce measures to achieve the goal in the policy,” he said.

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