Bengaluru: The State government has imposed stringent rules to ensure that Karnataka Industrial Area Development Board (KIADB) and Karnataka State Small Industries Development Corporation Ltd. (KSSIDC) land up to two acres allotted for micro, small and medium enterprises on lease-cum-sale basis are used for industrial purpose only.
The order issued by the State government said that the lease-cum-sale period should be fixed for 10 years from the date of execution of lease-cum-sale deed. Further, enterprises have to clear all dues before execution of absolute sale deed. After the execution of the sale deed, the land/shed should be utilised only for industrial purposes, said the order.
As per the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, micro enterprises should invest Rs. 25 lakh on plant and machinery, Rs. 25 lakh to Rs. 5 crore by small enterprises, and Rs. 5 crore to Rs. 10 crore by medium enterprises. Investment on equipment should be up to Rs. 10 lakh by micro, Rs. 10 lakh to Rs. 2 crore by small, and Rs. 2 crore to Rs. 5 crore by medium enterprises.
On July 5, the State Cabinet cleared an amendment to the KIADB rules for allotting land on 10-year lease-cum-sale instead of the 99-year lease.
