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LandLeasePolicy-LLP 2019

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183 views18 pages

LandLeasePolicy-LLP 2019

Uploaded by

alisaym277
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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LAND LEASE POLICY 2019

CIVIL AVIATION AUTHORITY ORDER

VERSION : 2.O
DATE OF IMPLEMENTATION : 03-09-2019
OFFICE OF PRIME INTEREST : Commercial &Estate Directorate (Estates &Land Record)
\
t

LEASE POLICY

NAME DESIGNATION SIGNATURE

{ -*!."4-wlg
PREPARED BY
JAFAR ABBAS CHEEMA ADLD ESTATE & LR

ACTING DIRECTOR
e
TASHFEEN ASHRAF COMMERCIAL &
ESTATES

REVIEWED BY SYED AAMIR MEHBOOB DDG. APS


(9,
Air Cdre
VERIFIED BY DIRECTOR SQMS
NASIR RAZA HAMDANI

/*O
DIRECTOR
APPROVED BY SHAHRUKH NUSRAT GENERAL
PAKISTAN CAA

TYPE OF
DOCUMENT
crvtL AVtATtoN AUTHORtTy ORDER (CAAO)
0-
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o STATUS OF
DOCUMENT
CONTROLLED
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a
E

03/09/2019
*
LAND LEASE POLICY
cAA

A. PURPOSE:
41. Pakistan Civil Aviation Authority (PCAA) has been established to promote and regulate the civil
aviation activities and to develop airport infrastructure within Pakistan to ensure safe, efficient,
adequate, economical and properly coordinated air transport services. Airports owned and
controlled by PCAA are mostly sited in cities, which are hub of diversified commercial activities.
It is vital to effectively utilize PCAA land to achieve sustainable economic development, up-
gradation of aviation services, adoption of upcoming aviation technologies, etc.
M. PCAA is obligated under law to generate revenue to meet its increasing requirements of
infrastructure development, maintenance, operational cost and management cost, etc. This
Policy will encourage private sector participation for optimum commercial exploitation of
landside at airports as per the approved airport plans with an assurance that such exploitation
shall not adversely affect future airport infrastructural developments such as expansion of
runway, taxiways, aircraft parking hangers, MRO's, GHSO, Flight Kitchens, Cargo Village,
flying clubs, storage of aviation petroleum products, etc.

B. SCOPE:
81. Thls CAAO is implemented in Civil Aviation Authority and shall be applicable on all leases
executed under this CAAO.

C. CORE RESPONSIBILIW:
C1. For the purpose of this Policy the Director Commercial & Estates is the authorized OPl.
C2. The authorized OPI or duly delegated officer will.- o
C2.1 implement the Policy and oversight the process for grant of Lease of Land and its o
completion process after meeting the codal formalities and ensure timely completion of
process by officials as per the checklist attached Annex-B2;
u
ut
C2.2 be responsible for preparation of the tender documents including the standardized pre-
qualification procedure, request for proposal (RFP) issuance, technical/ financial
F
o
evaluation, approval and award and publication of the same through print and
electronic media; and
E,
C2.3 to prepare and disseminate information for auction of land.
C3. Airport Manager & Concerned Estates Officer shall be responsible to ensure possession of
land to the successful bidder after seeking clearance from the authorized officer and complete
formalities of registration/ execution of Lease Deed and approval of building plan.
C4. PCAA Legal will also be responsible for vetting of Lease Deeds and fulfillment of all codal
formalities before execution of the Lease Deed.
C5. The Price Evaluation Committee shall be responsible for fixation of reserve prlce as specified
herein.
C6. Airport Manager & concerned Estates Officer of the airport shall be responsible to coordinate
with the local authorities of Land Revenue and shall complete the handing / taking over
process of the leased land with successful bidders after meeting all the requirement specified
herein.

D. DESCRIPTION:
D1. OBJECTIVE:
Dl.1 PCAA felt the need to revise the existing land lease in light of vision of the National
Aviation Policy to maintain financial self-sufficiency by revenue generation from land
use and to:

0310912019 Page 1 of 16 CAAO-001-CMER-2.0


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LAND LEASE POLICY 2019
cAA
iJrdv-l
D1.1.'l Ensure consistent process to develop aeronautical projects such as aviation
projects on the airside and landside;
D1.1.2 Ensure consistent process to develop non-aeronautical projects such as
commercial projects, commercial projects on landside;
D'1.1.3 Ensure constant, essential, safe and quality services at airside and landside;
and
Dl.1.4 Foster the growth of non-aeronautical and aeronautical development in and
around airports in accordance with the applicable PCAA Airport Minimum
Standards Operating Regulations (SOR).
Dl.2 This Policy declares that PCAA owned land is not available for sale, however land may
be exchanged with the prior approval of the PCAA Board. Airport aeronautical and
non-aeronautical development will be processed through grant of longterm Lease
subject to airport master plan, airport layout plan, airport business plan and the PCAA
land use scheme as determined from time to time.
D1.3 This Policy further declares that the tenancy of PCAA Agriculture Land shall be
governed by procedure appended as Annex-A.

D2. MODE OF LEASING:


D2.1 The land under this Policy will be leased for.-
D2.1.1 Non-Aeronautical Development i.e., for Commercial Projects and Mega
Commercial Projects by way of grant through public auctioni open tender;
and
D2J.2 Aeronautical Development i.e., for Aviation Projects by way of grant through
direct allotment or as specified by the Board.
D3. DURATION OF LEASE:
D3.1 The land for projects will be offered by grant of "Lease" for a "Term" as provided below.
D3.1.1 Mega Commercial Project up to 50 years [Extendable]
D3.1.2 Commercial Project up to 30 years [Extendable]
D3.1.3 Aviation Project up to 30 years [Extendable]
o.'
o
() D3.2 TheTermof Leaseshall beasspecifiedinclauseD3.l.l, D3.1 .2and D3.'1 .3withan
option to extend the Lease for D3.1.2, D3.1.3 and D3.l.lprojectswith mutual consent
u on the same terms and conditions for another period of 20 years and 05 years
respectively subject to a pre-determination that the project land is not required for
tu
F airport infrastructural development.

o D3.3 The award of Lease for Mega Commercial Projects shall be subject to submission and
approval of the feasibility report including viable business plan in addition to other
tender requirements. The bidders will also be required to provide the proposed
B flnancing arrangement for the development of Mega Commercial Project.
D3.4 The Lease Deed for specified projects in D3.1 shall be executed on non-judicial stamp
papers. However, possession of land shall be given upon registration of Lease Deed
and completion of all legal and financial conditions as per the checklist appended as
Annex-81.
D3.5 Maximum 10% increase in the awarded land maybe allowed if identified later on in the
possession of lessee or requested by the lessee. Subject to the approval of the
competent authority, the lessee shall be charged 100% of the assessed land price/
value at the time of award of lease in respect of the excess land. However, annual

03i09/2019 Page 2 of 16 CAAO-O01-CMER O


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LAND LEASE POLICY 20.I9
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J,;,ri.:,v,lile,t,F, i
ground rent shall be charged in accordance with the executed lease deed. No
deffease in the area of leased premises shall be allowed.
D3.6 No suFleasing shall be permissible for any of the leased premises, only rentals shall
be allowed.

D4, DETERMINATION OF LAND VALUE/RESERVE PRICE:


O4.1 To fix the reserve price for Lease of land earmarked for aeronautical and non-
aeronautical development following procedure shall be adopted:
D4.1.1 Reserve price of land shall be calculated based on the DC rates or/and on
the value of immovable properties rates notified by the Federal Board of
Revenue (FBR )from time to time under the applicable lncome Tax Law
whichever as higher, plus 05 % rncrease in the vaiue/ pric€.
D4j.2 Concession/ reduction ol25o/o shall be applied on value of land calculated as
pet 04.1.1 for determination of reserve price in case of aeronautical
development through Aviation Projecus. Aviation projects at the land side
shall not be subjecl to any exemption and OC orland FBR Rates plus 5%
increase whichever is higher shall be applied for determination of reserve
price.

D4.1.3 No method for calculation of reserve price shall be applied except as


stipulated herein above.
D4.1.4 Final price shall be decided by Director Commercial & Estates, HQCAA and
HQCAA Committee where locataon price as not considered rational enough.
D4.1.5 The Price Evaluation Committee shall fix the reserve price for inviting
tenders or direct alloiment as provided herein.
D5. COMPOSITION OF PRICE EVALUATION COMMITTEE:
o.
D5.1 The Price Evaluation Committee shall comprise of the foliowing members.- o
o
HQCAA LOCATION
&
Director Commercial & Estate
Additional Director Estates & Land
I Airport Manager/
I a.,"r" o*"",
C.o.o. I
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Record
Representative of Additional Director R"O*""nt"tir" ot aOditional Drrector
I

a
Legal I
Representative of Additional Director Representative of Additional Director
I

E
Finance Finance

D6 eBEUlg.!!:
D6.1 Subject to clause D4. the premium amount shall be calculated as follows.-
D6.'1.1 irlega Commercial Projects % [half] of the highest land value/ price offered
by successful bidder;
D6.1.2 Commercial Projects: 1/3'd lone third] of the highest land value/ price offered
by successful bidder. The extended period beyond 30 years i.e. 31"rto 4oth
year and 41'' to 50'n year shall be subject to increase of annual ground rent
of '150% and 100% respectively.
D6.1.3 Aviation Projects: '1l3'd [one third] of the land value/ price for a term up to 30
years. The e)dended period beyond 30 years i.e. 3'1'' to 4O'n year and 41'' to
50'n year shall be subject to increase of annual ground rent of 150% and
100% respectively.

03/09/2019 Page 3 of 16 cAAO-001-CMER-2.0


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LAND LEASE POLICY 2019
cAA
j,Grs tl..aiety
D6.2 The payment of Premium will be made either in lump-sum, or in three equal
installments, as follows:
D6.2.1 Payment of Premium in Lump sum, rebate of 1% in Premium amount shall
be admissible. However, annual ground rent shall be charged on the basis of
original amount of Premium.

OR
D6.2.2 First installment at the time of award of Lease;
Second after six month of the first installment;
Third shall be paid within 12 months of the second installment;
D7 ANNUAL GROUND RENT:
D7.1 Annual ground rent shall be charged upon award of Lease as advance "Ground Rent",
for the period that shall commence from the date of handing over the possession of the
Lease land and approval of the building plan whichever is later. The annual ground
rent for different categories of Projects shall be as follows.

sR. CATEGORIES
DESCRIPTION
NO OF LEASE
10% of the assessed premium for the 1"' period of 10
years.
100% increase for the 2nd period of 10 year.
Mega
100% increase for the 3'o period of 10 year.
a). Commercial
100% increase for the 4th period of 10 year.
Projects
o- 100% increase for the 5th period of '10 year.
o 150% increase for the
(50 + 05 = 55 years)
extended period of 05 years.
c) 1oo/o oI the assessed premium for the 'l"t period of 10
years.
,"i 100% increase for the 2'd period of 10 years.
Commercial
b). 100% increase for the 3'd period of 10 years.
Projects
$i 150% increase for the 4th period of 10 years.
100% increase for the Sth period of I 0 years.
(30+20 = 50 years)
10% ol the assessed premium for the 1st period of 10
ril
= year.
100% increase for the 2nd period of 1 0 year.
Aviation
c). 100% increase for the 3'o period of 10 year.
Projects
150% increase for the 4th period of 10 years
100% increase for the Sth period of 1 0 year.
(30+20 = 50 vears)

D8. OPEN TENDER:


D8.1 Land for Mega Commercial Projects and Commercial Projects will only be leased
through auction /open tenders. All tenders shall be published in the Urdu and English
national dailies and PCAA website or as per the requirement of tenders.
D8.2 The authorized OPI or its delegated officer shall form a committee that will be
responsible for the tendering process including bid opening, its evaluation and
subsequent award of Lease to the successful bidder after approval of the competent
authority. Lease Deed shall be executed by the respective Airport Managers.
D8.3 Single bid in response to the tender will be considered in accordance with applicable
laws and procedures and if found qualified may be accepted accordingly.

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LAND LEASE POLICY
cAA
s)-GP.; !
D8.4 No conditional bid will be accepted.
D8.5 Tender should be awarded to the highest evaluated bid

D9. DIRECT ALLOTMENT:


D9.1 The land for Avlation Projects will be leased through direct allotment when the.-
D9.1.1 Recipient is an entlty exclusively related to aviation business such as;
airlines, charter operators, flying clubs/schools, airport service license
holders, aircraft manufacturing lndustry, aircraft maintenance organizations,
MROs, flight kitchens, GHSO/ GHAs, aviation fuel farms, cargo village,
aviation related training institutes and servlces, etc.; and
D9.1.2 Land is required by the GovernmenU Semi-Government agencies in
furtherance of their operational or semi-operational function related to
aviation industry. The premium and/ or ground rent to be charged as per the
terms and condition of the Lease Deed termed as a "Special Lease Deed":
or
D9.1.3 Land to be made available for an agency, organization, department, etc.
directly under the administrative control of Aviation Division, on the directive
f;
lo'
D9.2
of the Aviation Division on such terms and conditions as stipulated therein.
The Director General shall execute Lease Deed of Aviation Project[s], after approval of
o
(J
the competent authority.
g,
D1O. TERMS FOR EXTENDED PERIOD OF LEASE:
UJ
D'10.1 Extension of Lease may be granted for such term as specifled in clause D3 of this
Policy. However, the terms and conditions of the Lease Deed shall remain unchanged
F
a
except as specified in the Lease Deed otherwise.
D10.2 ln case of extension in the duration as per D3.2, the Lessee shall be bound to submit
written request to Director General or Airport Manager prior to one year before the =
expiry of the existing Lease Term.
D'10.3 The rate of annual ground rent for the extended period shall be re-calculated and fixed
in terms of clause D7.1.

D'10.4 The Addendum to the lease Deed to reflect extension in term will be granted on
willingness of Lessee to pay premium amount [if any] as well as the annual revised
ground rent and approval of the competent Authority;

D11. TIMELINES FOR GOMPLETION OF PROJEGTS:


D11.'1 The time will be the essence for all Projects:

CATEGORYOF
START UP DATE COMPLETION DATE FOR OPERATIONS
PROJECT
Within six months of Within five year of physical possession and
physical possession and approval of building plan [whichever is later]
approval of the building under clause D3.4. Provided that upon written
Mega plan [whichever is later] request the period may be extended on a
Commercial under clause D3.4 sufficient reason for a term not exceeding two
Projects years.

03/09/2019 Page 5 of 16 CAAO-001-CMER-2.0


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LAND LEASE POLICY 2019
cAA
j.a tJrc*t
CATEGORY OF
START UP D/ATE COMPLETION DATE FOR OPERATIONS
PROJECT
Within three months of Within two year of physical possession and
physical possession and approval of building plan [whichever is later]
Commercial approval of the building under clause D3.4. Provided that upon written
Projects plan [whichever is later] request the period may be extended on a
under clause D3.4. sufficient reason for a total term not exceeding
one year.
Within three months of Within three year of physical possession and
physical possession and approval of building plan [whichever is later]
Aviation approval of the building under clause D3.4. Provided that upon written
Projects
plan [whichever is later] request the period may be extended on a
under clause D3.4. sufficlent reason for a term not exceeding one
year.

D11.2 ln case of default of clause D1 1.'1 Non- Utilization charges will be imposed on the
Lessee. Provided that before imposition of any Non- Utilization charge the checklist
appended as Annex-B2 will be submitted for the determination that the cause of delay
in execution and registration of Lease Deed, physical possession or/and approval of
building plan cannot be attributed to CAA officials.
Dl2. NON.UTILIZATION CHARGES:
D12.1 lf the Lessee fails to start the project within the stipulated period as provided above the
Lessee shall be liable to pay non-utilization charges Rs. 100/- per square yard per
month till the time the default is continued.
D12.2 lf the Lessee fails to complete the project for operation within the period provided
above and in the Lease Deed or within the extended period as allowed by the
IEI Authority, the Lessee shall be liable to pay a non - utilization charge of Rs. 3001 per
square yard per month as delay penalty for a grace period of 60 days or/and before the
) notice for cancellation/ termination of Lease Deed and resumption of land as stipulated
in the Lease Deed.
u
let
D12.3 The non-utilization charges will be revised by 100% after every ten years.
F
a D13. FINAL APPROVAL:
D13.1 All cases for grant of Lease, will be subject to the approval of the competent authority:
D13.1 .1 PCAA Board for Mega Commercial Projects and Aviation Projects;
LEJ
D13J .2 PCAA Executive Committee for Commercial Projects.

D14. FINANCIAL CONTROL:


D14.1 The payment of premium, annual ground rent, any fine as penalty including non-
utilization charges shall be deposited in CAA Account on or before the due date.
D14.2 ln case of any default of Lessee in the payment of the premium amount, annual ground
rent or non-utilization charges or any other fine/ penalty, for more than sixty days, it
shall be deemed as breach of conditions of Lease Deed and Lease Deed will be liable
to be cancelled/ terminated and possession of leased land along-with fixtures or/and
building as the case will be, resumed by PCAA immediately.

D15. RESTRICTIONS ON LAND USE:


D15.1 The Lessee will not mortgage/ pledge/ alienate/ sub-Lease any part or portion of the
leased land. PCAA shall have the right to inspect the leased land as per Annex-C
periodically.

03/09/20'19 Page 6 of 16 CAAO-001-CMER-2.0


*
LAND LEASE POLICY 2019
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D15.2 The land will not be leased in operational and technical areas and airside except for
Aviation projects.
D16. RESERVED RIGHTS:
D16.1 PCAA reserves the right to further develop or improve the aviation facilities of the
airports as it sees fit, regardless of the desires or view of the Lessee, and without
interference or hindrance.
D16.2 PCAA reserves the right to take any reasonable action, including zoning laws, it
considers necessary to restrict the use of the land adjacent to or in the vicinity of the
airports to activities and purposes compatible with normal airport operations, including
landing and takeoff of aircraft.
D16.3 PCAA reserves the right to take any action it considers necessary to protect the aerial
approaches of the airports against obstruction, together with the right to prevent
Lessee's from erecting, or permitting erection of any building or other structure on or
adjacent to the airports that, in the opinion of the Authority would limit the usefulness of
the airports or constitute ahazard to aircraft. Any proposed constructions on, or in the
vicinity of the airports are subject to the PCAA Airport Minimum Standards Operating
Regulations (SOR) &PCAA Building Control. t>
.c.
D17. MISCELLANEOUS: o
D17.1 WAR OR NATIONAL EMERGENCY: C)
D17.1.1 lt shall be understood that during a time of war or national emergency/
contingency, the PCAA shall exercise such control as provided under
u
ul,
section 6 of the Civil Aviation Ordinance '1960, over all leased land till the
duration of war or national emergency without any financial implication on
F
a
the PCAA.

D17.2 PREVENTION OF INTERFERENCE WITH AIRCRAFT OPERATIONS:


E
D17.2.1 Lessee shall agree to prevent any operation on the leased land thatwould
produce electromagnetic radiation, smoke, steam, or electrical signals that
would cause interference with any air navigation or air communication
systems. Additionally, Lessee shall not allow emission of confusing light,
which may create restrictions to visibility at the airports.

D18. COMPLIANCE:
D18.1 Lessee's shall be required to comply with all laws, rules, regulations including the rules
and regulations of the Civil Aviation Authority as may be amended from time to time.
D18.2 ln case of breach / violation of any clauses of this Policy or the Lease Deed, PCAA
shall take action as per the terms conditions of this Policy and Lease Deed,
accordingly.

E. EVIDENCES (ACRONYMS / DEENLIIQNS 1REFERENCES):


E1. ACRONYMS

APM AIRPORT MANAGER


CAA CIVIL AVIATION AUTHORITY
CAAO CIVIL AVIATION AUTHORITY ORDER
coo CHIEF OPERATING OFFICER
DTE DIRECTORATE
HQCAA HEADQUARTERS CIVI L AVIATION AUTHORITY

03/09/2019 Page 7 of 16 CAAO-001-CMER-2.0


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LAND LEASE POLICY 20,I9
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J; ;
',.
NOC NO OBJECTION CERTIFICATE
REP REPRESENTATIVE

E2 PEE!NIL!.oNS:
E2.1 "Airport" means the airport notified by the Federal Government under sub-section (ii)
of Section 2 of Pakistan Civil Aviation Authority Ordinance No. XXX of 1982',

E2.2 "Aeronautical Development" means any project or activity whether conducted on or


off airside, that involves, makes possible, or is required for the operation of aircraft or
that contributes to, or is required for, the safety of such operations and shall include, but
not by way of limitation, all activities commonly conducted on airside, such as charter
operations, pilot training, aircraft rental and sightseeing, aerial photography, crop
dusting, flying clubs/ schools, aerial advertising and surveying, aircraft services, storage
of aviation petroleum products, whether or not conducted in conjunction with other
included activities, aircraft manufacturing industry, aircraft repair and maintenance,
aircraft ground handling and any other activity which, because of its direct relationship
to the operation of aircraft, can appropriately be regarded as an aeronautical activity;

E2.3 "Approval " means the approval of PCAA Board, the PCAA Executive Committee or
the Director General as the case may be;

E2.4 "Authorized OPl" means an Officer of PCAA, who is duly authorized, by the orders of
the Director General/ PCAA Executive Committee/ PCAA Board to control, manage,
administer the PCAA Estates and to exercise certain powers relating thereto, delegated
a- or otherwise;
o
L) E2.5 "Aviation Projects" means lease of land for aeronautical development;
rv E2.6 "Commercial Projects" means lease of land for projects other than Mega Commercial
ut Projects for non-aeronautical development;
$"-
g) E2.7 "Landside" means any site that does not have direct access to the airside operation
area,

E E2.8 "Lease" means lease of land for Aeronautical Development and Non-Aeronautical
Development as the case may be;

E2.9 "Lessee" means any person under a valid Lease Deed, as specifically defined in each
individual lease Deed;

E2.10 "Master plan & layout plan" means the approved scaled drawing of the airport,
indicating current and proposed land use for each identifiable segment as approved
and/or modifled by the Authority from time to time;

E2.11 "Mega Commercial Project" means lease of 06 acres or above of land for non-
aeronautical development for large-scale venture or project[s] including chain of four
star and above Hotel[s], Convention Centre, lnternational Standard State of Art Mall
with all commercial and entertainment options, AmusemenU Theme Parks, Expo
Center, Corporate Tower, etc. to generate sustainable economic activity, with the
involvement of both public and private stakeholders;

E2.12 "Non-Aeronautical Development" means any commercial development on land side


through Commercial Projects and Mega Commercial Projects including but not limited
to Convention Center, Expo Center, Corporate Tower, Hotels, Restaurants, Show
rooms, Malls, Ware Houses, lT parks, Petrol Pumps, etc.; and

03/09/20'19 Page 8 of 16 CAAO-oo1-CMER-2.0


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LAND LEASE POLICY 201
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E2.13 "Person" means any individual, firm. partnership, corporation, company, assocration,
joint stock association or body politic, and includes any trustee, receiver, assignee or
other similar representative thereof.

E3. REFERENCES:
Nit

!MPLEMENTATION
This CAAO shall be implemented with effect from 3d September 2019 and supersedes CAAO-
CMER-001-1 .0 dated 1 't March 2012.

td
/*A
(SHAHRUKH NUSRAT)
DIRECTOR GENERAL
(L'
o
o
t,
Dated: - PAKISTAN CIVIL AVIATION AUTHORITY UI
l-
a
E
(TASHFEEN ASHRAF)
Director Commercial & Estates

Dated: - OSt"pt"mber 2019


File No. HQCAA/1 91 3l27gtCMERlX

03/09/2019 Page 9 of 16 CAAO-001-CMER-21.)


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@ LAND LEASE POLICY 2019

ANNEX . A

GENERAL CONDITIONS FOR LEAS E OF PCAA AGRICULTURAL LAND

1. Agricultural land will only be leased through public tender/open auction or local quotation with the
approval of Competent Authority as follows:

(a) Upto Rs. 10 Million of total bid amount with approval of Director Commercial & Estate
(b) Morethan Rs. 10 Million of total bid amount wjth approvalof Director General CAA.

2 Agricultural land will be leased on consideratjon of annual rent and the rent shall be increased 5%
per annum.

3 The reserved rentals value of the agriculture land shall be fixed per acre as per the customary norms
of the respective District Revenue Authoritjes.

4. Agricultural land shall be leased for a term of five (5) years with an option to be renewed for another
term up to five years. Such extension in the term of lease shall only be on the written request of
lessee 06 months before expiry of the initial term, i.e. 5 years and the lessee shall have to participate
in tender/ auction /quotations as the case may be with first right of refusal to the sitting lessee to
match the highest bad.

5. The possession of agricultural land will only be handed over upon execution of the lease deed.

6. The Agricultural land.-

(a) Barren or uncuttivated for the first time shall be leased on a condition that lessee shall make
the land cultivable at its own cost. PCAA will not charge rent for first three years of cultivatron
however, the lessee will be responsible to pay all revenue cess, electricity and water charges

o- (b) Earmarked for plantatron of an orchard/ fruit trees will be leased on a condition that lessee wtll
{t do the plantation of orchard at its own cost, however PCAA will charge rent upon having
availed the first yield of the orchard.

U:, 7. Agriculture Land Use Within Restricled Operational Parameters


IT
(a) Flowers plantation whether permanenvseasonal shall be encouraged through participation of
U' CAA employees either individual or collective team at no cost to CAA for beautification of
areas and development of flora and fauna. Provision of adequate water resources and inrtial
leveling of land shall be provided at CAA's Cost.

= (b) Development of orchards at vacant land will also be encouraged

L Cutting/ Trimming of crass and Trees

(a) Surplus grass and trees at Airports shall be sotd out to the highest bidder through open
auCtion.

(b) Reserve Price for the auction shall be fixed by respective Airport N4anager/ C.O.O after
obtaining rates from concerned Agriculture/ Forest department.

(c) Director Commercial & Estate shall give the final approvat for acceptance of highest bid.

03/09i2019 Page 10 of '16 CAAO-o01-CMER-2 0


* LAND LEASE POLICY 2O'I9
CAA
;,GEr-'i!J, ec-'
ANN -81
Checklist

lnstructions: Fill in the requested information and place a check in boxes for which
requirements have been satisfied.

PART .A
l. Basic lnformation:
1 . Airport-
2. Approval:
tr Board
tr Executive Committee

3 Date of Award:-
4 Lessee:
c
I
D lndividual I

tr Firm/partnership o
tr
tr
Company o
Joint venture (r
tr Special purpose vehicle UJ
TyDe of Lease:-
F
crt
tr Aeronautical
tr Non-Aeronautical E
6. Type of Project:-
O Aviation:
tr Commercial
tr Mega Commercial
tr Business plan
tr Feasibility RePort

7. Reserve Price: [D4.1 'l lD4 1'21


tr DC value + 05 %
tr FBR value + 05 %

8. Premium Amount:-
tr 1"i lnstallments
tr 2nd lnstallment
tr 3'd lnstallment

9. Annual Ground Rent:


E for first 10 Yrs:-
tr for second 10 Yrs:-
tr for third 10 yrs:-
age 11 o 1-CMER-
0 019
*
cAA 9
L

10. Location On
11. Term: Years With _Option (s) of_ Years(s)
tr The lease is consistent with the Airport Layout
Plan and Master plan approved
by the Board on the following date
tr The rease is environmentary compatibre with
airport operations.
[. Mandatory Req uirements:
tr AnnualGround Rent @ per year)
ilt Lease Deed
tr Registered

IV Mandatory Clauses of Lease Deed


tr Term
tr Consideration ln Terms of Receivables
tr Default of payment
0' tr Tax liability
o Termination
tr Force Majeure
tr Severability
:. .-
F.,
tr Amendment
V) a Right to Takeover
tr Disputes Mechanism
tr No Wavier
= tr Non-Discrimination
o Height Restrictions
tr Creation of No Hazards
tr Property Rights Reserved

V Recommended Ctauses (Not Mandatory):


D Use Defined
tr lnspection Of premises
tr Subordination
tr Maintenance & Repair
tr lndemnification
tr DamageAssessmentprocedure
tr lnsuranceRequirements
D Ownership of lmprovement
tr Lessor's tnterest (not subject to Lessee,s liens)

Page of
*
LAND LEASE POLICY 9
CAA

l, have reviewed the enclosed Lease Deed and


certify ttrat the Lease Deed meets the requirements set forth by the PCAA Board. I further
understand that failure to comply with the required clauses could ieopardize PCAA interest.

Signature

Printed Name

Designation Title

-,
o.
o
C)
tr
UJ
F
o
{
e

03/09/2019 Page 13 of 16 -cMER-2.0


*
cAA 201

ANNEX. 82
lnstructions: Fill in the requested information of officials and place a Checklist
check in boxes for
which requirements have been satisfied and ensure that there is
no default or aeuy on part
of CAA Officer/ Officials.

l. lnformation:

1. Name of concerned Officer/Officials


a. rport Managerl
b.
c.
_[Estate Officer]
Officerl
2. Date of Award and Execution of Lease Deed:

3. Date of Registration of Lease Deed:

4. Name of Lessee:_

5. Type of
E Aeronautical
E Non-Aeronautical

6. Type of Project:_
E Aviation:
E Commercial
f,l Mega Commercial
E Business plan
tr Feasibility Report
o-
o 7. Date of submission of
etc.
Building Plan with complete drawings
C)
u
ut
8. Date of approval of Building plan and drawinqs:

F
o tr Afler six months

9. Rellons for deray of approvar of Buirding pran within six months;


E D Registration of Lease Deed;
E Submission of Building plan;
E lncomptete Building plan;
E Deviation from the submitted Building plan;
E Non Payment of premium Amount; or
E other
10. Date of Physical possession of Lease Land:

ll. Date of Registration of Lease

'age 4of
a

*
LAND LEASE 2019
cAA

lll. Gertification

trt, have reviewed the enclosed


checklist and certify that the officers/ officials have not committed default or delays
in completion of process and met the codal formalities to ensure the timely
completion. I further certify that officers/ officials have complied with the required
clauses and have not jeopardized PCAA interest.

OR

trr, have reviewed the enclosed


checklist and certify that the officers/ officials have committed default or delays in
completion of process and have failed to comply with the codal formalities to
ensure the timely completion. I further certify that failure of officers/ officials to
comply with the required clauses have jeopardized PCAA interest, hence propose
initiation of departmental proceeding of misconduct.
o'
o
o
Signature u
UJ
F
a
Printed Name

Designation Title =

03/09/2019 Page'l5 of 16 CAAO-001-CMER-2 0


*
@ LAND LEASE POLICY 2019

ANNEX -C
lnspection Form
(after every '12 months)

lnstructions: Fill in the requested information and place a check in the boxes for which the
requirements have been satisfied.

l. MandatoryRequirements:

D Use of land as per Lease Deed


tr Physical Possessron date _
tr Building Plan approval date
tr Startup date
tr Completion date --
D Annual Ground Rent @ per ( yeaO

ll. AppraisalRequirements:

f, Encumbrances:_ o.
l Third party rightr_ o
tr
tr
Default:
date:_
o
f,
Non completion notrce
Non Utilization Charges date:_ t.
ul
tr Termination notice: F
lll. Renewal/ Extension request date:_ and re-calculation of premium
o
E DC value + 05 %
E
B FBR value + 05 o/o
E Annual Ground Rent @_ per ( veaO

lV. Certification

certify that the Iessee is operating the


Lease as per the Lease Deed and meets the req uirements set forth by the PCAA Board.

Signature

Printed Name

Designation Title

03/09/2019 Page 16 of 16 CAAO-oo1-CMER-2 0

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