November 20, 2008
New industrial plot policy ups prices in Uttarakhand
BS reported that after months of dithering, Uttarakhand government has announced the new land allotment policy for industrial development, a move that has sent land prices soaring by nearly 200%.
Under the new policy, the price of an industrial plot will now be 125% more than the last highest bid price in that particular notified industrial area. This is being interpreted as nearly 200% increase in industrial land prices since the last bidding process in 2006.
When one buys land in Pantnagar, the government will charge a premium of 125% on the last highest bid price, which was INR 3,600 per square meter in 2006.
Sources said that a substantial chunk of land was still available at key industrial areas like Hardwar and Pantnagar, which are being developed by the State Industrial & Infrastructure Development Corporation of Uttarakhand Limited.
According to an estimate, nearly 300 acres is available in both the Hardwar and Pantnagar industrial estates, where top companies like TATA Motors, Hero Honda, Ashok Leyland, Nestle and others have set up shop. With the concessional industrial package coming to an end on March 31st 2010, the government is keen to make money since scores of industries are ready to buy more land.
Mr BC Khanduri chief minister has indicated that his government would not go for open bidding as far as the allotment of industrial plots was concerned. Nearly 100 firms including Bajaj Auto, Nestle and TATA Motors have approached the government to buy land in the notified areas of Pantnagar and Haridwar for their expansion programs.
The existing base rates at both the Pantnagar and Haridwar industrial estates are INR 2,500 per square meter. The land prices in both the estates have appreciated 400% since 2004. In 2004, the land price was INR 560 per square meter, which rose to INR 1,500 per square meter in 2006.
Ashok Leyland has decided to double its investment in the state from INR 1000 crore to INR 2000 crore as part of its expansion plan, a proposal already cleared by the government. Early this year, the company was allotted 17 acres of land at Pantnagar. Similarly, TATA Motors, which is investing INR 2,000 crore at its manufacturing facility in Pantnagar, is also planning to buy more land.
Meanwhile, the Uttarakhand government has started taking action against all those industries which are taking benefits of tax holiday scheme but have not begun any construction or production at the industrial plots given to them at Haridwar and Pantnagar industrial estates.
Scores of industrial plots have been cancelled so far and all others, which have not started their production, are being given notices. The sources said all these cancelled plots can also be given to all those industries which are interested in buying more land for their expansion program.
