Land Shrinking: Himachal to cut lease period to 40 years

Pratibha Chauhan

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Shimla, April 28

The Himachal Government has decided to reduce the lease period of government land given to the industry, educational institutions, charitable institutions and for tourism projects from 99 to 40 years.

The Revenue Department has issued a notification in this regard while inviting objections from any affected person within 30 days, which will be considered before finalising these new rules. The amendment will be made to Rule 7 of the Himachal Pradesh Lease Rules, 2013, by way of the Himachal Pradesh Lease (Amendment) Rules, 2023.

As per the amendment, the period for leasing out government land will be reduced to 40 years even though this can be further extended by five, 10, 15 or more years. However, no amendment has been proposed for making changes in the lease amount, which varies depending upon the purpose for which it is being leased out.

The amendment has been proposed under powers conferred by Section 13 of the Himachal Pradesh Village Common Lands Vesting and Utilisation Act, 1974 (Act No. 18 of 1974) and Section 26 of the Himachal Pradesh Ceiling on Land Holdings Act, 1972, (Act No. 19 of 1973). “The lease period can be further extended after 40 years so there is no reason for apprehension on the part of anyone interested in seeking land on lease,” an official stated. There have also been instances where the leased land has not been put to use for the intended purpose, with hardly any case of the land being taken back by the government.

Huge chunks of government land have been given on lease for hydro-power projects, mining, tourism projects, industries, charitable and religious institutions, and for creating sports infrastructure. The rate for leasing out land for each of these categories, however, varies and in some cases, it is even a token Re 1 despite huge income for the beneficiary.

Even though no specific reason has been attributed for this move, it is being felt that the government land is shrinking by giving out huge chunks on lease. The issue of leasing out government land had also been challenged in court by an individual, who had questioned the lease period of 99 years, while terming it a perpetual ownership.

He had also questioned the nominal lease rate in sharp contrast to the huge income being generated from activities being undertaken on this land. Questions had also been raised on the legal heirs of the beneficiary inheriting the lease rights of the original lessee.

Invites objections

Revenue Dept issues notification Invites objections within 30 days Lease can be extended after 40 yrs

Who’ll be affected

Hydro-power & tourism projects, mining operators, industries, charitable and religious institutions

Token fee

The rate for leasing out land varies and in some cases, it is even a token Re 1 despite huge income for the beneficiary