The provision for a licence period of 30 years under Clause 17 of the amended guidelines on establishing private industrial estates in the State itself is against the idea of private estates, the Kerala State Small Industries Association (KSSIA) said in its memorandum to the government and Industries Minister.
A private developer will take about two to three years to get the project running after first applying for the licence. The condition may also force banks and financial institutions to refrain from extending loans for the projects.
The industries association also says that the 30-year clause may also prevent entrepreneurs from taking space in industrial estates under a private developer. The transfer of the enterprises to a new owner will not be possible in case the initial owner decides to leave the scene for some reason after a decade or two. The Association is of the view that the clause on 30-year licence period should be withdrawn.
