Industrial estates will have to pay a premium to convert the land to a free-hold one. The government is expected to announce the premium rates within 60 days.
However, industrial estates are wary of the move and pointed out according to the information that they have, they will be required to pay 25 per cent of the present value of the plots held on lease by them as premium.
The Gujarat Industrial Development Corporation (GIDC) started leasing the land at Rs seven per square metre four decades ago, while the present leasing rate is Rs 875 per square metre.
The lease is for 90 years.
Besides, it will be difficult to convince all the members of an industrial estate to agree to the proposal of converting the land from lease-holds to free-hold, say industrial estate association leaders.
Although this system has not been made mandatory, the cash-strapped GIDC expects that at least Rs 400 crore would come to its kitty even if 50 per cent of the estates agree to convert the lease-hold land to free-hold.
The amount so collected will form a special fund named Industrial Estate Development Fund (IEDF).
GIDC chairman Hasmukh Adhia said the scheme sent to the state government proposes that the corporation get at least 75 per cent of the amount that the estates pay as premium for conversion from lease-hold to free-hold.
