KIADB hikes price of allotted sites by 75%, irks industrialists

HUBBALLI: The Karnataka Industrial Area Development Board (KIADB) has reportedly decided to make sale deed for its allotted sites in 2017-18.
As per the norms, the board can hike the rates by 10-15% for sale deed within 10 years of allotment. KIADB has hiked the final price by 70-75% and is preparing to issue notices to beneficiary entrepreneurs, who feel it’s a shock for the MSME sector of the state. Irony is that there is no hike for sites allotted to government agencies like RTO in Dharwad.
Copy of the KIADB circular has created worry among MSME entrepreneurs of the state.
Highly placed sources in industry department told TOI that the a resolution was passed in a board meeting held in June in Bengaluru, but the copy of the resolution has been stored as very confidential document. KIADB development officers are reportedly instructed to convince site allottees personally to make arrangements to get their sale deed registered.
Vasant Ladawa, former president, Karnataka Chamber of Commerce and Industry (KCCI), Hubballi, alleged that the KIADB officials are not even issuing notice to entrepreneurs but forcing site allottees personally to register the sale deed. “Supreme Court itself had insisted KIADB to collect final price with a maximum 15% hike. However, the government has revised the final price by 60-75% which is an unbearable burden for entrepreneurs,” he added.
Nagaraj Divate, former president, North Karnataka Small Scale Industries, shared that though KIADB has not issued notices to beneficiaries but copy of its resolution is making rounds in WhatsApp groups of industrialists in the state. “When we contacted KIADB officials in Dharwad, they admitted that it’s a genuine circular, according to which we have to pay Rs 98 lakh for the site assured at Rs 63 lakh. This decision will definitely discourage young generation to become industrialists,” he said.
“MSMEs have suffered a lot during last 2 years. Recession and Covid has pushed us to our worst point. Now the hike is by 60-75% which is against the 20% mentioned in government’s industry policy itself. We are planning to meet large and medium scale industry minister Jagadish Shettar soon to discuss the issue,” he added.
“There was an issue with the industrial estates developed during previous governments. As there was no restriction for the hike, they enhanced the final price by 50-80% in the past. But, we have now ensured maximum hike of 20% after and will try my best to resolve this issue at the earliest,” said Shettar who is also the KIADB chairman.