Meghalaya Extends Land Lease Period to Attract Big Investments

SHILLONG: The Meghalaya government has taken a decisive step to attract large-scale investments by extending the lease period for government-owned land.

On Monday, the state Cabinet approved a proposal to increase the lease duration from 30 years to 60 years, a move expected to enhance the state's investment climate and promote economic growth.

The extension, according to Tourism Minister Paul Lyngdoh, has been derived to address a serious hindrance for investors. He claimed that the earlier period of 30 years had generally been regarded as too short, both to recover costs and generate reasonable returns. This was the case even for big-ticket long-duration projects.

"We realize that investors need time to recover their investments and reap profits. Increasing the lease period to 60 years will give stability and incentive to big-ticket projects," Lyngdoh said. He further stated that the government is committed to creating an investor-friendly environment which can attract huge domestic and international investments.

One such project that exemplifies the shortcomings of the previous policy is the Hotel Orchid Polo project. This ambitious joint venture, valued at approximately ₹300 crore, faced hurdles because the 30-year lease period was deemed inadequate by potential investors.

According to Lyngdoh, the feasibility of achieving a satisfactory Return on Investment (RoI) within such a restricted timeframe was a common concern raised by stakeholders.

The Department of Revenue and Disaster Management forwarded the proposal to extend the lease period. After analyzing the investment landscape and holding consultations with several departments, the Cabinet gave the nod for extending the lease period.

The new policy allows a 60-year lease to be extended further by the mutual consent of both parties for another 30 years. This will provide investors with enough time to complete their projects and stay in business without going through renegotiation at critical phases of business development.

The policy shift is reflective of the strategic intent of Meghalaya to improve its economic prospects. By resolving the key issues confronting investors, the government intends to make the state a destination of choice for large infrastructure, tourism, and other high-value projects. 

This decision will open up new avenues for transforming the economic landscape of the state and ensuring long-term, sustainable development.

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