Kerala govt extends land lease period to attract long-term IT investments
Each application will be individually scrutinised, and decisions will be taken at the government level. A similar concession had earlier been granted for SEZ areas.
Each application will be individually scrutinised, and decisions will be taken at the government level. A similar concession had earlier been granted for SEZ areas.
Each application will be individually scrutinised, and decisions will be taken at the government level. A similar concession had earlier been granted for SEZ areas.
Thiruvananthapuram: In a major move to encourage investment in IT parks across Kerala, the state government has decided to increase the lease period for land allotted to IT companies and co-developers in non-SEZ (Special Economic Zone) areas from 30 years to 90 years.
Each application will be individually scrutinised, and decisions will be taken at the government level. A similar concession had earlier been granted for SEZ areas.
According to government officials, the decision aims to boost long-term investments. It was based on a report submitted by the CEO of Infopark, which noted that the current 30-year lease period was insufficient for investors to undertake large-scale infrastructure development.
The lease extension will depend on the volume of investment. IT park authorities must ensure that the land is used solely for the intended purpose and that the project is completed within the stipulated timeframe. Additionally, the new lease agreements will include a clause preventing the leased land from being subject to recovery proceedings.
“The decision instils confidence in firms planning large, long-term investments,” said V K Mathews, chairman of GTECH, an association of IT companies in Kerala.