Procedure for land allotment

For an entrepreneur to obtain land or rent a building in KIAP or KTC, the following is the procedure for allotment of land/ built-up space for a lease period of 30 years, renewable up to 90 years. Various forms are issued for allotment of land/ building space, such as:

Form A – Composite Application form for registration, licenses/ clearances, which includes different parts:

Part I: General information about the proprietor and the business

Part II: Details regarding the land

Part III: Details of end product

Part IV: Details of Factory Building

Part V: Certificate to be attached for building permission

Part VI: Machinery and Power

Part VII: Capital Investment

Part VIII: Raw Materials

Part IX: Fuel Consumption

Part X: Finished Goods

Part XI: Manpower requirement

Part XII: Miscellaneous details

Part XIII: Pollution control

Part XIV: General

Form B – Intimation letter from land allotment committee
Form C – Application for allotment.
Form D – Allotment letter. It will be issued from Industrial area/ District board/ State board on allotment of land to the   entrepreneur.
Form E – License agreement.

Various steps to be fulfilled for allotting land/built up space to an entrepreneur are:

Step 1: Apply in a white paper as an application form for registration Form A – Composite Application form for licenses and clearances, which costs ₹ 100 plus GST.

Step 2: Application for allotment (Form A) to be submitted with a detailed project profile indicating raw material, process flow diagram, end product and DD of ₹ 5000 plus GST as applicable (currently @ 18%) drawn in favour of KINFRA payable at Thiruvananthapuram. Profile is to be placed before District Industries Land Allotment Committee (DILAC).

Step 3: Once the proposal is cleared by the District Industries Land Allotment Committee, intimation letter (Form B together with Form C on allotment will be issued to the allottee and allottee shall remit 10% of the total amount of lease premium as Earnest Money Deposit (EMD) within 30 days.

Step 4: On remitting EMD, allotment letter (Form D) will be issued and allottee shall remit 50% of lease premium within 15 days.

Step 5: On remitting 50 % lease premium, License Agreement (Form E) to be executed between KINFRA and the allottee, the validity of the agreement is for 24 months, during which the allottee has to submit the drawings, construct the building, installation of plant and machinery and the unit shall be ready for commercial production. The balance lease premium of 50% is to be remitted within 5 years without interest.

Step 6: Once the unit is ready for commercial production, Lease Deed (Form F) will be executed for the balance lease period of 30 years, which is renewable up to 90 years. On settlement of lease premium in one time, lease deed will be executed with immediate effect. Please note that the deeds are exempted from Stamp duty and Registration. In case of cancellation of the allotment, 10% EMD will be forfeited.