Building in Industrial Estate currently up for Long-Term Rental

Lease term up to 60 years, transferable after three years

Buildings in multi-storied industrial estates under the Directorate of Industries will henceforth have a lease for long term. The Industries Department has come up with a new method for tenancy up to 60 years. After 3 years, it can be transferred to another person or company with prior permission if required. Buildings in multi-storied industrial estates of other agencies like Kinfra are leased for ten years. There is also a non-transfer clause. It is in this context that the Directorate of Industries has prepared guidelines with promises to attract entrepreneurs.

Under the Directorate, there are 40 Industrial Estates in charge of District Industrial Centres. In three of these, buildings have been constructed as multi-storied industrial estates. Ernakulam, Edayar, Alappuzha, Punnapra, Thrissur and Puzhakal Padam have a total of 2.86 lakhs square feet of space. More estates are under construction. The lease is initially for 30 years. If satisfactory, it will be extended for another 30 years. The rent of one year is to be paid as security deposit. There will be 0.5 percent interest if rent is not paid by 5th of every month. After that 10% interest will be charged and it will increase by 10% every year. If the rent is not paid for three consecutive months, it will be taken back. The operation should start within six months of the approval. It will be taken back after another six months of relaxation. After three years it can be transferred to another company or individual with prior permission.