The state government has notified the classification and the conditions for leasing out panchayat land (village common land) on a long-term basis. The government, in a communication to the district authorities, has disclosed that the leasing process can be done in four categories and all these will invite different commercial rates, depending upon the nature of the lease. The lease rates vary from Re 1 per acre per year to the existing market rate, besides an additional charge of Rs 30,000 per acre per year. Several villages have applied for permission to lease out common land on a commercial basis to generate funds for development. Rule 6(5) of the Punjab Village Common Lands (Regulation) Rules, 1964, specifies that the panchayat may, with prior approval of the state government, lease out its land by allotment for a period not exceeding 33 years, further renewable not exceeding the previous period for setting up infrastructural facilities, units of public utility nature, educational institutions, and special economic zones, or for purposes approved by the state government for the benefit of the village community. The authorities concerned have recently issued a notification classifying the lease category and the rates to be charged for the purpose. The first category of lease is meant for setting up institutions relating to education, health, sports stadium or related purposes, for which the lease rate to be charged will be just Re 1 per acre per year. The second category of lease is meant for setting up facilities or infrastructure of public utility nature by the government or its agencies like boards, corporations or companies for which the panchayat concerned will be entitled to charge an amount equal to 10 per cent of the collector rate of the land per acre per year with an increase of 10 per cent after every five years. Under the third category, the panchayat will get an amount equal to 5 per cent of the collector rate of the land per acre per year with an hike of 5 per cent for the leased-out land meant for setting up schools, hospitals, dispensaries, veterinary hospital or similar institutions on a no-profit-no-loss basis. The fourth category pertains to the SEZ and the industry which will have to shell out an amount equal to the floor rate or the market rate whichever is higher as premium payable in advance plus Rs 30,000 per acre with an annual increase of Rs 10,000. It has been stated that such institutions will have to give preference to the locals in the matter of employment in industrial units and a reservation of 5 per cent for local children in schools, besides waiving the tuition fee for them.