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 The Association is of the view that the clause on 30-year licence period should be withdrawn.
The industries association had welcomed the modifications made to the private industrial estates rules this year. The association had said there was good response from private developers from all the districts but that the cost of land in districts like Ernakulam had proved to be a stumbling block.
The modified Private Industrial Estate Scheme 2022 was notified in the first week of April this year. Under the scheme, entities owning and possessing a minimum of 10 acres or more could develop an industrial estate after applying directly to the State government for the required permits.
Private industrial estates have been mooted with a view to attracting more investments to the State and against the backdrop of the government setting a goal of creating one lakh new industrial units during the year 2022.
It is with this aim in view that the initial rules on land availability have now been reduced to 10 acres both in rural and urban areas for developing private industrial estates.
