Lease rules under Land Act to be simplified

Pratibha Chauhan

Tribune News Service

Shimla, May 11

The state government has set the ball rolling for simplifying the Lease Rules which will facilitate flow of investment in hydro-power, industry and tourism sectors, with investors citing cumbersome procedures and clearances as a major hindrance.

The government has notified a committee headed by Chief Secretary Vineet Chawdhry which will examine the issue of simplifying Lease Rules under Tenancy and Land Reforms Act, 1972 so that investors do not face problem in obtaining clearances. Additional Chief Secretaries of Revenue, Power, Forest, Environment, Town and Country Planning, Public Works and Irrigation are on the committee. The meeting is likely to hold its first meeting shortly.

Ram Subhag Singh, Additional Chief Secretary (Revenue and Transport), confirmed that an exercise to simplify the Lease Rules would be undertaken by the committee as investors had approached the government to simplify them. The investors have to seek permission under lease rules to get government land on lease for any project.

However, the BJP regime has chosen to tread cautiously on the issue of simplifying the contentious Section 118 of the Tenancy and Land Reform Act. Though Chief Minister Jai Ram Thakur after assuming power had stressed the need to simplify it, with the Congress making a hue and cry over the issue, the government has chosen not to touch the issue right now. It is learnt that the number of no-objection certificates (NOC) that are mandatory for seeking clearance for a project would be reduced. “The biggest problem being faced by investors is that while the gram panchayat is willing to give NOC, it is practically impossible to evolve consensus in the entire gram sabha,” pointed out an officials. Besides, reducing the number of mandatory NOCs, the government is also contemplating to make the grant of these certificates time bound. This, in turn will help the investors to complete the formalities for setting up any project or industry, in a time bound manner without inordinate delays.

In fact, several entrepreneurs, especially independent power producers (IPPs), have urged the government from time to time to simplify these rules. The Lease Rules 2003 were revised in 2003 and now they will be further simplified as per the Chief Minister’s announcement in his budget speech.

The CM has already pointed out that he was targeting power, tourism and industry and mining as the key sector for generating revenue. As such, removing hurdles in investment was being seen as the first major step to encouraging big investment in tourism, industry and hydro sector.

Addressing the inordinate delays 

• It is learnt that the number of NOCs that are mandatory for seeking clearance for a project will be reduced. 
• Besides, the government is also contemplating to make the grant of these certificates time-bound. 
• This will help investors complete formalities for setting up any project or industry in a time-bound manner without inordinate delays.