The 99-year lease period will be offered only to state agencies, he said on Friday (Jan 29).
Mr Wisudhi said the amendment of the maximum lease term to 99 years from 50 was aimed at facilitating a debt-to-land swap deal by the State Railway of Thailand (SRT) and the Finance Ministry.
The SRT will lease its prime land plot in the Makkasan area of Bangkok in exchange for clearing its accumulated debt of B62 billion.
Mr Wisudhi brushed aside criticism that the government would allow the private sector to lease state land for up to 99 years and potentially open up agricultural land to foreign investors.
At present, two sets of regulations govern leased land in Thailand.
The Land Lease for Commercial and Industrial Purposes Act sets a maximum lease period for industrial and commercial use of 50 years with a 50-year renewal option.
The Civil and Commercial Code allows people to lease land for general purposes for up to 30 years.
Chakkrit Parapuntakul, director-general of the Treasury Department, said his department and the SRT would survey the Makkasan plot to clear any buildings in the area before the handover.
The SRT will conclude the survey and forward the results to the Treasury Department by the second week of February, he said.
The debt-to-land swap will seek approval from the State Enterprises Policy Commission or superboard chaired by Prime Minister Gen Prayut Chan-o-cha and the Cabinet before the lease contract signing.
The Finance Ministry will lease 497 rai of land in Makkasan for 99 years from the loss-ridden SRT in exchange for clearing B61.8 billion of the latter’s debt.
The SRT is among seven financially troubled state enterprises required by the superboard to undertake business rehabilitation.
Some 150 rai is to be developed as a public park, with 30 rai for a museum and 317 rai for commercial purposes.
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