In a bid to encourage large-scale investments and developmental projects, the Meghalaya Cabinet on Monday approved a proposal to extend the lease period for government land to 60 years.
Tourism Minister and government spokesperson, Paul Lyngdoh, addressed the media following the Cabinet meeting, stating, “We have approved the extension of the lease period for government land to facilitate developmental projects.”
Currently, the state offers a 30-year lease on government land. However, given the increasing number of proposals for significant investments and projects, the government determined that the existing lease duration was insufficient to attract investors seeking a reasonable return on their investment. As a result, the Cabinet, through the Department of Revenue and Disaster Management, proposed the extension of the lease period to 60 years.
After the initial 60 years, the lease will be renewable for an additional 30 years.
The government aims to use this move to incentivize and attract investors, particularly in sectors showing potential for growth and economic enhancement in Meghalaya. Lyngdoh emphasized that the decision is designed to foster an environment conducive to private investment.
“Under the existing policy, the permissible lease period on government land is 30 years. However, in many emerging sectors, the return on investment (ROI) is a crucial factor. Investors often find the 30-year lease period too short. For example, in the case of Orchid Polo, which is moving to a joint venture mode, the investment plan is projected at no less than Rs 300 crore. To make such large-scale projects feasible, we needed a more reasonable lease period. With this extension to 60 years, renewable for another 30 years, we believe it will encourage major players to invest in the state,” Lyngdoh explained.
