PESHAWAR, June 27: The NWFP government has formulated a corporate farming policy, which will pave way for leasing out thousands of acres of barren land to foreign investors for agriculture and livestock development projects.

The policy, which is yet to be notified by the NWFP Board of Revenue (BoR), had been devised in line with the Colonization of Government Land (Punjab) Act, 1912, an official told Dawn.

Following implementation of the policy, the government will be able to lease out at least 18,694 acres in the southern districts of the province – 5,293 acres at Darbo Kuch and 3,512 acres at Kata Kanri in Kohat; 2,189 acres at Dubara in Tank; 6,850 acres at Rakh Topi, 500 acres at Band Kurai and 350 acres at Rukh Zandani in Dera Ismail Khan; and 2,692 kanals at Moza Sheikh Landak Lakki in Bannu.

Lease would be granted for land development and reclamation of barren, desert, hilly and other pieces of state land to improve productivity of exportable commodities, the official said.

He said lease of such land could be awarded for projects relating to reclamation of water front areas, crops, fruits, vegetable, flowers, farming, improving and development of irrigation facilities, water management, plantation, forestry, horticulture and dairy farming.

The foreign investors, under the policy, would be bound to invest not less than $1 million, of which 40 per cent will be held by the local company or individuals.

The project proposals will be processed through the Board of Investment and referred to the provincial government, which will handle it through the BoR in consultation with relevant local agencies.

The lease will be for up to 50 years, extendable by 49 years.

The policy also envisages some incentives for the investors -- the lease of barren, sandy and hilly land will be rent-free for five years and there will be a tax holiday for ten years after the promulgation of the notification.

Under the policy, the foreign or local company will not be allowed to transfer the land to any other firm without permission of the provincial government.

During the term of lease for every subsequent year, the tenant will pay in advance yearly rent and other charges in respect of water rate, cess and other taxes in the first month of the calendar year. In case of default of payment of lease rent, the collector will take action under Section 24 of the Colonization of Government Lands (Punjab) Act, 1912, adopted by the government of NWFP, the policy draft says.