Bill allowing use of govt land for commercial usage on freehold basis likely to be introduced in Budget session

MP, 30 Jan 2023, KOLKATA: In a bid to encourage the setting up of industries in the state, the state government is mulling changes in clauses under the land lease agreement for which a Bill may be introduced in the upcoming Budget session of the Assembly. Sources in the state government said that a Bill could be introduced to amend the Bengal Land Reforms Act 1955 that will allow the use of government land for commercial purposes on a freehold basis. 

This is mainly aimed at the generation of revenue for the state. The amendment will seek to introduce clauses concerning payment for the land. The state Cabinet on January 11 took the decision of allowing lands other than those vested under its ‘khas’ possession to be transferred for commercial purposes on a freehold basis. 

Following this, Urban Development and Municipal Affairs department has notified the West Bengal Land Conversion (Leasehold land to Freehold) Scheme 2022 which will allow plots leased out for 99 years or more to be converted to freehold by paying a fee that ranges between 7.5 and 20 per cent of the land value. 

Sources said that the decision will seek to fetch revenue to the state government. This new bill for the conversion of leased land into owned or freehold land will be applicable for both residential and commercial plots that are under the Kolkata Municipal Corporation, the New Town Kolkata Development Authority, and the West Bengal Housing Infrastructure Development Corporation, among others. 

The Bill is likely to be introduced in the forthcoming Budget session of the Assembly, slated to start on February 4. 

The budget for Financial Year 2023-24 might be presented on February 15, said Finance Minister Chandrima Bhattacharya. Owners of plots leased by the Sriniketan Santiniketan Development Authority, Asansol Durgapur Development Authority and Siliguri Jalpaiguri Development Authority will also benefit from the scheme. Individual housing plots in Salt Lake that were sold by the urban development department will not come under the purview of this scheme. 

https://www.millenniumpost.in/kolkata/bill-allowing-use-of-govt-land-for-commercial-usage-on-freehold-basis-likely-to-be-introduced-in-budget-session-506971