On November 17, 2023, the West Bengal government approved the West Bengal Land Conversion (Leasehold Land to Freehold) Scheme, 2022 which in other words means that now the leasehold land settled for 99 or 30 years can be converted into freehold land in Kolkata. This offer includes the “Khasmahal Land” and those of various other industrial parks and estates under West Bengal Small Industries Development Corporation (WBSIDC), West Bengal Industrial Development Corporation (WBIDC), and West Bengal Industrial Infrastructure Development Corporation (WBIIDC).
Commerce and Industries Minister Shashi Panja at an event held by CII, has stated that nine industrial parks with an accumulated land parcel of approximately 1739 acres have been set up to be offered to the new industries. This is officially the first significant land conversion from leasehold to freehold in Kolkata and West Bengal.
The allotted land under the tea tourism and affiliated business strategy can now be allowed to have freehold status. Land parcels that are owned and recorded in the name of KMDA, owned by the UD & MA will be available for conversion from leasehold land to freehold. All plots of Sector V, Salt Lake will not be covered under this scheme, and in other sectors of Salt Lake, only commercial and residential plots will be considered for conversion to freehold. A lease that has been given at a nominal salami or concessional rate for charitable/religious/educational or public purposes shall remain excluded from the purview of the scheme. Leases which has been given at a concessional rate, for example, at Bengal Silicon Valley, and at Fintech Hub, both located in New Town Kolkata, and other plots that have been allotted at token price shall remain excluded from the purview of the scheme. Any conversion under the West Bengal Land Conversion (Leasehold Land to Freehold) Scheme, 2022 will cost 15 percent of the current market price of the land.
President of Credai West Bengal Mr. Sushil Mohta said, “It is a welcome move by the government of West Bengal to allow the conversion of land on a freehold basis from leasehold. It had been a long-standing proposal from all sorts of industries to allow the government allotted lands or vested land on freehold, which is going to be allowed.” He also added that “It is also a win-win situation. The government gets higher revenue and for the allottees of land, the bank loans will become easy. Subsequent transfer of the land/properties will also now be made possible by having the title as freehold.”
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