SAIL introduces comprehensive lease renewal Policy
PNS
BOKARO
The Steel Authority of India Limited (SAIL) has introduced a new policy for renewal of land and plot leases, effective from May 15, 2026, aimed at improving transparency, legal compliance, and efficient utilization of its land assets. The policy applies only to existing leases that have expired or are due for renewal and does not cover fresh allotments.
Under the revised framework, leased land has been classified into three categories. Category-I includes commercial entities such as banks, insurance firms, private establishments, petrol pumps, and commercial complexes. Category-II covers government departments, municipal bodies, housing societies, and educational institutions, while Category-III comprises social, religious, charitable, and welfare organizations.
Lease renewal charges have been fixed at 25% of the prevailing land premium for Category-I entities and 10% for Category-II. Category-III organizations will pay a token fee of Re 1. Lessees will also be required to deposit an interest-free security amount equivalent to three times the annual ground rent and service charges.
The annual ground rent has been set at 1% of the renewal fee and service charges at 2%, with both increasing by 10% every five years.
SAIL has also provided relief for expired leases. Renewals completed within one year of the policy’s implementation will attract only simple interest, while delays beyond that period will invite penal interest and may lead to eviction or legal action. The company said the policy would support planned development in the Bokaro Steel Plant township.
