land policy

Salient features of approved land policy

  1. PREAMBLE VPT Board is delegated to lease out its lands up to 30 years. 2. LAND INSIDE CUSTOM BOUND AREA. Allotment shall be made only for activities directly related to Port operations on licence basis up to a Maximum period of 11 Months. 3. 0. LAND OUTSIDE CUSTOM BOUND AREA: Land can be allotted either on licence or lease basis. 3.1 LICENCE: The license may be up to a maximum period of eleven (11) months. 3.2 LEASE: • Land shall be leased only in accordance with the land use plan • Land can be leased up to 30 years by Port after Board’s approval • The land is generally allotted following the tender procedure for all fresh allotments. • Allotment of land is generally on upfront premium basis however; Port shall also have the flexibility of allotting the land on annual rental basis under certain circumstances. • Sublet of the leased premises would be allowed subject to fulfillment to certain conditions. • Change of use of leased land would be permitted subject to fulfillment of certain conditions. • Dispensing with the Minimum Guaranteed Throughput (MGT) requirement, in those cases, which were finalised in the past would be allowed subject to fulfillment of certain conditions. • For renewal of leases, a simple transparent system will be followed. • Port land will not be given for religious purposes / activities. 4. General – Applicable to existing and new leases: The lessee may be allowed to transfer the lease after obtaining prior approval of the Port provided the transferee takes over the liability of the original licensee/allottee. Such transfer shall be for the remaining duration of the lease. 5. MARKET VALUE OF LAND & SCHEDULE OF RATES (SOR): • SoR shall be arrived at taking 6% of market value as rent per annum. SoR will be revised every five years. SoR shall be escalated by 2% per annum. • SoR should vary in accordance with the purpose of land use. 6. Discount Rate A discount rate equal to the rate of 6% plus actual escalation on lease rent shall be applied for arriving at upfront premium from annual rentals.

If the Market value fixed by the competent authority / TAMP for a Unit Land on the date of consideration is Re.1/-, then the Upfront for 30 years – considering 6% rental value, 2 % escalation every year (Compoundable) and Discount rate at 6% as per the Guidelines in force will work out to Rs. 1.09
Land will be leased in accordance with the land use plan through Tender route.
For establishing Petrol outlets, Petroleum Companies advise is essential and NOC from environmental angle is required to be obtained.
• Period of lease under long term is up to 30years.
Land is allotted generally on upfront fee basis. However, Port shall also have the flexibility of allotting the land on annual rental basis under certain conditions.
Procedure for arriving upfront fee as per guidelines in force
1.6% rental value on the Basic (Market) value fixed for the land by the Competent Authority/ TAMP on the date of consideration will be taken.
2% escalation will be effected every year (compoundable) for the lease period.
3.Thus arrived rentals will be discounted @ 6% and then rental values arrived after thus discounted will be added and that will be the upfront fee.
Note: E-mail may be contacted for the entire land policy
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