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Regular-article-logo Friday, 12 September 2025

Lease draft: new rent and clauses

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AMIT GUPTA Published 02.08.05, 12:00 AM

Jamshedpur, Aug 2: The draft of the new lease agreement between the state government and the Tatas deals with over 10,000 acres of land in the five schedules, a two-fold increase in lease rent for the different schedules and at least five new clauses.

The East Singhbhum district administration, which prepared it, today sent the draft proposal of the new lease agreement to the Singhbhum-Kolhan commissioner Chintu Nayak, who has been designated the chairman of the committee, to find an amicable solution to the vexed lease renewal issue.

The new proposal bears the signature of three representatives of Tata Steel, including Kanwal Midha, managing director (town services), Jamshedpur Utilities and Services Company (Jusco), a 100 per cent subsidiary of Tata Steel.

?Following clearance from the chairman, the East Singhbhum district administration expects to send the final draft to the state government by the end of this week,? said deputy commissioner Nitin Madan Kulkarni.

However, sources revealed that the commissioner had returned the document back for want of clarifications. According to the sources, one of the new clauses mentions that the steel major has to provide details about the plots sub-leased to others in the Schedule IV category (area sub-leased to others by the company).

?Now, details charting out rentals received by the Tata Steel by way of sub-leasing plots under Schedule IV and the actual payment to the state government has to be provided by the steel major,? informed a senior district official.

Earlier, the steel major used to pay a lump sum to the state government against the annual rental of land belonging to the five different schedules.

With regard to the 86 slums that have cropped up of late in the land under Schedule V (vacant land), the ball now is in the court of the state government. The steel major has already indicated that it does not want to take the encroached plots.

A survey cum demarcation report of the 86 slums would be sent to the state government along with the draft proposal.

According to the new draft proposal, the committee has doubled the lease rent in all schedules. The lease for all schedules of land would be renewed for a period of 30 years, the government had claimed earlier.

Another new clause added in the new draft proposal is that ?in case, the nature of the land is likely to be changed, the steel major has to give information about the same to the local district administration three months in advance. However, the current provisions gives 30 days time to district administration,? informed the sources.

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