Shillong: The Meghalaya government has taken a significant step to boost large-scale investments in the state. On Monday, the Cabinet approved an increase in the lease period for government land from 30 to 60 years.
Tourism Minister Paul Lyngdoh explained that the decision was driven by the need to enhance the Return on Investment (RoI) for major projects.
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The current 30-year lease period was deemed insufficient to attract significant investments, especially for large-scale ventures.
“We recognize that investors require a reasonable period to recoup their investments. Extending the lease period to 60 years will provide the necessary incentive for big-ticket projects,” ” Lyngdoh said.
The Hotel Orchid Polo project, a joint venture estimated at Rs 300 crore, serves as an example of the challenges faced by investors with the previous 30-year lease.
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“Investors were concerned about the feasibility of achieving a satisfactory RoI within such a timeframe,” Lyngdoh noted.
The Department of Revenue and Disaster Management proposed the extension, which was subsequently approved by the Cabinet. After the initial 60-year lease period, the land can be further leased for an additional 30 years.