J&K Govt mulls lease period extension to boost mega dev projects
Contemplates 90-99 year lease period to lure big investors & construction firms
Among the UTs in India, only the J&K Union Territory has a 40-yr period only
Post by Arvind Sharma on Tuesday, November 7, 2023
JAMMU, Nov 03: In a bid to attract investors from across the country and abroad, the Union Territory of Jammu and Kashmir is actively exploring the possibility of extending the existing lease period from 40 years to 90 to 99 years.
This move is aimed at invigorating development projects and enticing prominent investors and construction companies to participate in the numerous mega projects planned by the J&K government, according to reliable sources.
Recent meetings between influential investors and leaders of various construction companies from different parts of India and officials from J&K's concerned departments have shed light on their reservations regarding the current 40-year lease period. These investors and construction industry leaders have collectively demanded an extension of the lease period to 90 years, citing the need to ensure a satisfactory return on their investments.
It's worth noting that Jammu and Kashmir is the only region in the country where the lease period for private players and companies is limited to 40 years, while elsewhere in India, it typically extends to either 90 or 99 years.
Ashish Anand, the General Manager of Jammu Smart City Limited (JSCL), revealed that a proposal has been submitted to the Housing and Urban Development Department, seeking an extension of the lease period in J&K to either 90 or 99 years.
Prominent figures in the construction industry and major investors have expressed concerns over the current 40-year lease period, asserting that it is insufficient for them to execute projects effectively and sustain profitability. They insist that the lease period should align with the more extended terms offered in other parts of the country.