RAWALPINDI, May 8: The old grants lease policy has been extended for another one year on the special directives of President Gen Pervez Musharraf, sources told Dawn.

The president took serious notice of the discontentment among the people regarding the old grants lease renewal and ordered that the policy be extended to June 2005.

The changes made in the policy by the director general Military Lands and Cantonments (MLC) have also been withdrawn. Information Minister Sheikh Rashid Ahmad had requested the president to intervene in the matter.

The MLC chief had raised development charges from Rs100 to Rs1,000 per square-yard for commercial and from Rs50 to Rs500 per square-yard for residential plots.

The evaluation of properties for determination of premium for conversion of old grants will now be calculated on the basis of old rates from June 30.

The sources said the information minister had also taken up with the president the changes made in the original policy by the MLC chief.

The old grants lease renewal policy was first introduced in 1996, which was later extended from time to time till June 2004. The changes had scared away the people so much that only a limited number of lease-holders applied for renewal.