Lease of state land for petrol pumps: Punjab government issues amended rules

15 Apr, 2011

The Punjab government has issued amended rules regarding lease of state land for petrol pumps, CNG stations and service stations. According to the amended rules, 30 year lease will be given for setting up petrol pumps, CNG stations and service stations while the successful bidder will not be allowed to cut trees or unnecessarily remove sand or mud from the leased land.
Land will be given on lease through auction and the amount of initial bid will be decided by the committee headed by the concerned DCO according to the market rate. The Punjab Local Government Department has issued a notification on Thursday regarding amendments in 30 sections and a number of sub-clauses in Punjab Local government Property Rules 2003. Its copies are sent to the concerned departments as well as all Commissioners, DCOs and TMOs for implementation.
According to amended Punjab Local Government Property Rules, land having mineral resources, river banks, watercourses and drains could not be given on lease and only 2 to 8 kanals and 1 to 2 kanals state land could be given on lease in rural and urban areas, respectively. Those who will take part in auction will have to deposit one fourth of estimated rent as token money in Local Government Funds in advance. Initial period of lease will not be more than 15 years whereas one time extension for not more then 10 years would be given.

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