Correspondent
SHILLONG: In a bid to attract private sector participation and drive economic growth, the Meghalaya government has extended the permissible lease period for government land from 30 years to 60 years. The move, approved by the state cabinet, seeks to address investor concerns about the sustainability of returns on large-scale investments.
Cabinet Minister and MDA 2 spokesperson Paul Lyngdoh announced the policy revision on Monday, describing it as a strategic decision to foster private investments. “We have approved the extension of the lease period for government land to facilitate developmental projects,” he stated.
Lyngdoh explained that the previous 30-year lease period was insufficient to attract investors seeking reasonable returns on their investments.
“As you are aware, currently we have a policy whereby the lease period for allotment for government land to lessees, who are individuals and entities, is fixed at 30 years, but in view of the need and the increasing number of proposals for large-scale investments and projects, we deem that this duration is insufficient to attract investors, who would like a reasonable return on their investment. The cabinet through the department of revenue and disaster management came up with a proposal to change and alter this extension of the lease period of government land from the existing 30 years to a period of 60 years,” he said.
Highlighting the policy’s significance, Lyngdoh noted, “This is to be made further renewable for a period of an additional 30 years for projects under different investment modes. This we hope it will help to incentivize, encourage, and also attract investors to invest in various projects in the state of Meghalaya and especially in sectors that are showing signs of growth and hold promise for further enhancing the economy of the state.”
The minister cited specific examples, including the Orchid Polo project, which will now operate under a joint venture model with an investment plan exceeding Rs 300 crore. For instance, in the Orchid Polo, which will now come under the joint venture mode, the investment plan would be not less than Rs 300 crore, which is why we needed to have a rationale lease period, which would encourage players to come forward and participate, and with that in mind, we have extended the window to make it feasible for large-scale projects to have from 30 years to a period of 60 years. It will be renewable by another 30 years,” he said.
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