How To Lease Government Land?
Leasing and purchase of government land was earlier not allowed in order to keep away the unregulated players to enter the market. However, now, for commercial purposes businesses could apply to lease the government land in special economic zones. They could approach the development authority under the Centre's Make In India scheme. For agricultural purposes, landowners could lease their property and register their agreement legally.Â
Here's how you could lease government land.
Applicants, those interested in leasing government land, could contact the city development authority for enquiring about the land available under the scheme or for auction. Several authorities offer specific schemes for new entrepreneurs.
Documents required
- Request letter on company letterhead
- White application form (available online) duly filled
- Detailed project report
- Copy of registered memorandum of association(if the company is Pvt limited) or registered partnership deed (if partnership firm)
- Certificate of shareholding
- Board resolution
- Block plan of proposed utilisation of a plot
- Demand draft towards processing fees
Process: Apply to the authority with all the above documents attached. If approved, a letter will be issued to the applicant to appear before the Land Allotment Committee. Projects with foreign direct investment are considered on priority and given preference in the allotment of land.
Once the LAC approves the application, the authority issues the offer letter for payment of 25 per cent as earnest money deposit within 15 days of issuance of the letter. After this payment, the authority will issue the allotment letter with the plot number at which the applicant has to pay the remaining amount within 30 days of issuance of the letter
Also, for plots up to 10 acre, the applicant needs to pay the road width charges while for plots sized between 10 and 25 acre, applicants get a concession of 50 per cent of road charges. There are no road width charges for plots above 25 acre or if the investment is above Rs 100 crore.
In cities where development authorities are not yet formed, applicants can apply following the same process at sub-registrar office.