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LATEST NEWS UPDATES | CM Mamata bans government buying land, grounds key projects by Subrata Nagchoudhury

CM Mamata bans government buying land, grounds key projects by Subrata Nagchoudhury

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published Published on Jul 14, 2011   modified Modified on Jul 14, 2011
Kolkata : Mamata Banerjee’s announcement banning the acquisition of land by any government department or agency for industry has grounded over a dozen key industrial parks across the state. These projects, in various stages of progress — and in which land acquisition was on — account for a committed investment of Rs 50,000 crore.

The announcement — underlined by the state Industries and Finance Ministers — has stunned industry and so adversely could it affect ongoing projects that officials are now talking of a “one-time roll back” to “save” these projects.

Most of these industrial parks are in South Bengal — Purulia, Bankura, West and East Midnapore, Burdwan and North 24 Parganas — and were promoted by the state government’s West Bengal Industrial Development Corporation. The WBIDC, as facilitator, has been acquiring land on behalf of industry, creating basic infrastructure for development and offering incentives to investors.

The key projects stuck:

Matix Fertilizers and Chemicals is a methane gas-based fertilizer company nearing completion at the WBIDC-promoted industrial park at Panagarh in Burdwan. Land acquisition began with pockets of initial resistance by villagers and by January 2011, WBIDC handed over 498.49 acres to Matix, as per government records. Land needed to build access roads — part of the agreement — has now come under the ban.

Jai Balaji invested about Rs 200 crore on a 1-mtpa steel plant at an industrial park in Raghunathpur in Purulia. The company plans to invest a total of about Rs 16,000 crore on an integrated steel plant, a captive power plant of 1000 MW and a cement plant. It has asked the government for 3000 acres and has got 1400 acres from WBIDC.

Aditya Jajodia, CMD of the Group, said the government’s ban has put a question mark on the entire project that would have brought 5000 jobs “Since these are ongoing projects, the government should exclude these from the purview of the new policy,” said Jajodia. “Besides, this land isn’t fertile agricultural land....we may have to look for alternative means of acquiring land as we have already sunk in a lot of money.”

The Aerotropolis Project near Durgapur envisaged an airport as the central component (650 acres), institutional area (450), an IT and Industrial Park (550), supporting township (550) and rehabilitation of economically weaker sections (100). A joint venture with WBIDC, the Bengal Aerotropolis Private Limited (BAPL) got most of the land it requisitioned. But 300 acres are still pending. Changi Airports India Private Limited, a wholly owned subsidiary of Changi Airports International, Singapore, has a 26 per cent stake in BAPL.

n Adhunik Corporation Ltd, also an integrated steel plant venture, with huge investment plans was promised 1500 acres in Raghunathpur by the WBIDC. It has got 750 acres but the rest now hangs in balance. Said a senior company official: “We moved quite fast with railway connectivity sanction. We have already stuck

our neck out with substantial investments. We hope the government gives us the balance land.”

There are several government departments as well looking for special approvals for welfare schemes drawn up with substantial expenses. Not all are big projects but these are crucial schemes that need the government’s nod to move ahead. For example, the West Bengal Renewable Energy Corporation needs about 2.5 acres for a tidal power plant in the Sunderbans. Estimated at about Rs 50 crore, the project would have provided electricity to villagers around Gosaba but the ban has come in the way.


The Indian Express, 14 July, 2011, http://www.indianexpress.com/news/cm-mamata-bans-government-buying-land-grounds-key-projects/817203/


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