Union Cabinet approves conversion of leases to freehold in Kandla Port township

New Delhi, 9 January 2014

The government of India today approved a proposal for converting 99-year old leases to freehold land in Kandla Port Trust (KPT) township area including 366 acre at Gandhidham, leased out by the major port and 988 acres, sub leased by Sindhu Resettlement Corporation (SRC).

“The Union cabinet today gave its approval for the proposal of conversion of leasehold land to freehold land for 366 acres of leasehold residential part of the land at Gandhidham leased out by KPT and also 988 acres of residential part of land sub-leased by SRC at Gandhidham (428 acres) and at Adipur (560 acres),” an official release said.

The proposal would allow KPT to focus on its core business and would obviate the need to deploy human resources for collecting ground rent. It will also help eliminate one of the major causes of conflict with the local population, the release said, adding it will also mobilise resources for the port.

Moreover the residents of Gandhidham face considerable difficulties because of the nature of land tenure and multiplicity of taxes levied by various organisations. Allowing full ownership would be a citizen-friendly measure, it added.

Lease agreements in Gandhidham are almost 100 years old. The land was given to refugees who came from Sindh. Now following the example of cities like Chandigarh and Delhi, they can pay a final amount and convert into free hold ownership,” a senior shipping ministry official said.

Kandla port owns 2.2 lakh acre of land. However majority of this land is submerged and unusable. Government’s effort to use this land for salt cultivation has also not borne any result.