Panaji: Industrial estate plots in the state may belong to business establishment owners in the future, with the Goa Industrial Development Corporation (GIDC) working on a conversion policy to change industrial land from leasehold to freehold.
The proposed land conversion policy is in tune with the Union government’s compliance reduction and deregulation initiative, which requires states to optimise land use within industrial clusters. The conversion is also in sync with similar liberal industrial land policies adopted by several states, the GIDC said.
In addition to the conversion of industrial estate land to freehold, GIDC is also planning easier transfer, sub-lease, subdivision as well as amalgamation of plots by permitting these to be done through intimation instead of prior approval.
To put the proposed changes into effect, GIDC plans to amend the existing laws, viz. the Goa Industrial Development Act, 1965, and the Goa Industrial Development Corporation (Allotment, Transfer and Sub-Lease) Regulations, 2023. The corporation will also undertake a comparative analysis of industrial land administration frameworks adopted by various states.
The GIDC board said it has already prepared the draft amendments and will submit them to the state government for approval. The amendment to the Goa Industrial Development Act, 1965, will require an ordinance to be promulgated under Article 213 of the Constitution of India, it said.
Explaining the financial model for the land conversion, GIDC said that it involves payment of an upfront sum (freehold premium) by the plot leaseholder, equivalent to the aggregate lease rent payable from the date of application up to the expiry of the total lease term, viz. 95 years, together with any outstanding arrears and other dues payable by the promoter.
The freehold premium will be credited to a dedicated corpus fund, of which the principal amount will remain permanently preserved and not be utilised for operating expenditure. Only the investment income generated from the corpus fund shall be utilised.
GIDC said states such as West Bengal, Delhi, Punjab and Karnataka have permitted land conversion with statutory safeguards to prevent speculative transactions, preserve industrial use of land and protect public assets.
The conversion and other proposals are expected to have a positive long-term financial impact on the balance sheet. They will improve investor confidence, facilitate industrial investment, optimise utilisation of industrial land and simultaneously create a sustainable long-term revenue stream without eroding the underlying capital, said GIDC.
