CHENNAI: The Tamil Nadu government is considering revising the lease rates for government lands across the state following the identification of revenue losses caused by outdated land valuations and low lease charges, according to a Daily Thanthi report.
Government-owned lands in Tamil Nadu are leased to individuals and organisations for various public purposes, including education, healthcare and sports.
The lease period generally ranges from a minimum of three years to a maximum of 30 years.
If land is required for a period beyond 30 years, the government grants permission through a specific order.
Officials estimate that around 2,000 to 5,000 acres of government land across Tamil Nadu are currently under private use through lease arrangements.
However, the lease charges for several such properties remain considerably low. In some cases, the annual lease fee is reportedly as little as Rs 100 to Rs 1,000 per acre.
The existing lease rates are based on the value of the land, with an annual rate of 7% for land allotted for non-commercial purposes and 14% for commercial purposes.
However, the land values used to calculate the lease charges for several properties were fixed decades ago.
During the preparation of the White Paper on the state government's financial position, officials identified substantial revenue losses arising from these outdated lease rates and valuations.
This prompted the Revenue Department to initiate steps to revise the rates in accordance with prevailing market conditions.
A senior Revenue Department official said many properties continue to be assessed using land valuations that are 50 to 60 years old, resulting in significant revenue loss to the government.
“Work has commenced to revise the lease fee percentage as well as the land valuation based on current conditions,” the official said.
The department is expected to place its proposals before the government for approval before further action is taken on revising the lease rates.