The shortage of non-agricultural land across the state has forced the Karnataka government to open up prime agricultural land for setting up hotels and resorts in major tourism centres. The department of tourism has identified 100 major tourism destinations across the state for development of tourism infrastructure like hotels and resorts.
According to the existing laws, no individual or firm is allowed to buy agriculture land for non-agriculture purposes. However, the department of tourism today announced that it would facilitate acquisition of farmland for the purpose of construction of hotels at tourist places.
Announcing this at a press conference, minister for tourism and infrastructure development, G Janardhan Reddy said, “We will enable the hospitality sector to set up hotels at 100 places of tourism interest selected by the department. Wherever there is a shortage of government land, we will permit industrialists to identify land and we will give them permission to acquire up to 5 acres.”
In addition to this, the department will also offer exemption on VAT for three years and loan from the Karnataka State Finance Corporation (KSFC) at an interest rate of 10 per cent per annum, he said.
The government has decided to amend the Karnataka Land Revenue Act 1964 to enable entrepreneurs to purchase a maximum of five acres of cultivable land from farmers directly to set up hotels. The investors are also free to form a joint venture with existing landholders to set up hotels, he said.
Briefing reporters on the arrangements made by the Tourism Department to attract private investments during the Global Investors’ Meet on June 3 and 4, Reddy said 100 tourist places have been identified for setting up hotels in the private sector in various districts of the state.
He said, Karnataka is the only state in the country to allow private investors to purchase agricultural lands from farmers to set up hotels. The government would not interfere in the land deals between farmers and buyers, he added.
Some of the places identified for setting up hotels are: Bannerghatta, Dodda Aladamara (big banyan tree) Ghati Subramanya Nandi
Hills, Shivanasamurdra Bandipur, M M Hills, Belur, Halebeedu, Shravanabelagola, Sringeri, Kemmannagundi among others.
