Revamped Industrial Land Allotment Policy Receives Green Light from Government

Jammu, 07-08-2024: In order to attract significant industrial investments in the J&K Union Territory, a comprehensive Industrial Land Allotment Policy was necessary. Today, the Government granted historic approval for the amended version of the Jammu and Kashmir Industrial Land Allotment Policy, 2021-30, which will establish a framework for attracting and realizing both domestic and foreign investment. The policy is codified and provides an effective framework for large-scale industrial investments in the region.

The new policy has received approval to offer an effective and transparent mechanism for the timely allotment of industrial land, as well as to encourage, promote, and facilitate increased investment in businesses and the development of a robust, dynamic, and responsive business environment in the region. In addition, the policy will create job opportunities for the youth unemployment rate.

After the date of adoption, the Policy will be in effect for ten years. The official document added that the land would be given to the investors on a 99-year lease (with the option to extend for an additional 40 years) and that the Land Allotment Letter would specify all the terms and conditions of the agreement, including compliance with production timelines. “However, the Policy shall be reviewed from time to time based on a critical assessment of feedback from stakeholders.”
The Divisional Level Assessment Committee (DLAC) will expeditiously review all proposals submitted for industrial land allocation, based on both technical and financial criteria. Before every allocation procedure, the DLAC is responsible for making sure that all qualified applications have been evaluated.

Additionally, at the premium and rent rates set by the relevant Industrial Development Corporation, the Policy permits land allocation for public utility services like fire and emergency services, police stations, government/ESI dispensaries, Power Development Department, Public Health Engineering Department, Scheduled Banks, and so forth.
The Policy document states that land may also be set aside for public utility services that are appropriate for the industrial use of a particular Industrial Estate. If necessary, the concerned Industrial Development Corporation may also waive or lower the premium or rent rates for these public utility agencies.

The Policy document went on, “The concerned Industrial Development Corporation shall allot through competitive bidding the land identified in an Industrial Estate for other commercial utilities such as petrol pumps, restaurants, warehouses, etc. required in the Industrial Estates.”
The policy explicitly listed the requirements for the cancellation of the lease deed, such as the allottee’s failure to pay the full fee within the allotted time frame after the date the allotment letter was sent and for violating any of the lease deed’s terms.

Additional reasons for the lease deed to be canceled include: not starting production within the allotted time; not adhering to the application’s implementation schedule and other commitments; not adhering to any other condition(s) listed in the J&K Industrial Policy and/or guidelines; and not operating a business for a continuous period of five years.
According to the policy, in these situations the concerned Industrial Development Corporation will take prompt action to cancel the lease and evict the allottee; however, the canceled allotment may be reinstated for a valid reason with the consent of the relevant Land Allotment Committee.

The Policy was drawn up with the awareness and conviction that it would help the government carve out a position for itself in the economy and a market niche for its goods both domestically and abroad.