The Finance Ministry has been told to speed up an amendment bill that would allow land leasing for up to 99 years from 50 years at present, according a ministry source.
Earlier, the ministry proposed the amendment to the cabinet, primarily to allow the land-rich State Railway of Thailand (SRT) to clear its massive debts as recommended by the State Enterprise Policy Board.
The amendment to the 1999 act on lease of immoveable property for commercial and Industrial purposes is instrumental to the SRT's debt restructuring.
Under the plan, the SRT will transfer some of its land to the ministry's Treasury Department. In exchange, the ministry will help clear most of its debts and manage the land's development by renting it out to the private sector for up to 99 years, as all side agreed the 50-year cap at present might not be enough to draw investors.
The ministry also thought the current maximum lease is an obstacle in general to developing capital-intensive projects, which require long break-even time. Extending the lease would make the projects more appealing, especially to foreigners.
But the National Economic and Social Development Board (NESDB) thought the privilege should not be free to all and urged clear descriptions of eligible businesses in the bill.
Sharing its view, the Interior Ministry was concerned about land price manipulation and worried it would give foreigners another incentive to live in Thailand.
Mr Somkid told the Treasury Department to discuss the issues with the two agencies and wrap up the bill this month so it can attract investors to large projects and stimulate the economy in the medium and long terms.
Under the Civil Code, foreigners can lease land in Thailand for 30 years, renewable for another 30 years.
In 1999, the act on lease of immoveable property for commercial and industrial purposes was passed specifically to promote investment, extending the limit to 50 years, renewable for another 50 years.