Ranchi, (IANS) : In a move to facilitate investors to get land for long periods of time, the Jharkhand government is amending the land lease rules, an official said on Monday.

“To attract more investors and business houses in the state to set up their units, the state government has come up with the idea of providing permanent land to these industries unlike the previous practice of leasing out the piece of land,” a source in the Land and Revenue Department told IANS.

The land revenue and industries departments have together worked out a solution in this regard as land was being considered the biggest hurdle for industrial expansion in the state. As per the new policy, the industrial houses would also be able to lease out their permanent land to third parties.

The issue has cropped up after Tata company sublet the leased land to its subsidiary causing huge financial loss to the state exchequer.

“Amendments have been made in the land transfer as per which it has been now decided that the government land transferred to industrial houses would be permanent in nature. This will also ensure that the land is returned back if no industrial activity takes place. Previously the land revenue department did not hand over the ownership of land to the industrial houses and also used to impose conditions for return of land,” said the source.

Faced with land related issues, the state government conducted the study of land management practices of five states, with the pattern followed in Odisha was considered to be the best. The Jharkhand government too has moved forward to adopt the same policy.

As per the current provisions in the state, the land revenue department has set up a land bank and allots land to industrial area development authorities. Regulations have been also framed to allot land to the industrial development authority in Adityapur, Ranchi, Bokaro and Santhal Pargana. An industrial house which wants to set up its business in the state applies for land through Jharkhand Industrial Development Corporation. JIDCO then takes approval on the proposal from the industries department after which land is allotted for a period of 30 years on lease.

But with the changes in place, the process of land transfer has been simplified. The land revenue department would be providing land to the state industrial development corporation. The industrialists would be allowed to pay the cost of land in five years which was earlier a time payment.

With the approval of the state government, the industrial development authority would be able to take land from the arayats’ for industrial purpose which would be later given to the industrial houses. If required, the tenure would also be expanded.

The industries department has already forwarded the file for land purchase policy for industrial projects to the land revenue department after receiving the nod from law and finance departments.