Building land banks to lure investors

NEW DELHI: You could bank on them, for good. In a bid to attract big ticket investment and package themselves as a hassle-free destination, states such as Madhya Pradesh and Rajasthan have taken the lead in consolidating their land banks and offering them as one chunk to potential investors.

In Rajasthan, for example, the government agencies have already acquired 4,000 acres of land in various pockets such as Khus Khera, Neemrana, Bhiwadi and others. The government of Madhya Pradesh, which has been inviting industries to take advantage of the cheap available land, has acquired approximately 5,000 acres around Bhopal.

In fact, the process of consolidation of the land bank is also taking place.

Talking to SundayET, Madhya Pradesh chief minister Shivraj Singh Chauhan said that readily available tracts of land was the USP for the state. ���We have made large tracks of land available for investors. It has already been acquired. We will hand over the required piece of land with all necessary clearances to potential investors immediately,��� he said.

While elaborating the scheme, Pravin Garg, MD, Industrial Development Council of Madhya Pradesh said, ���It���s not just the availability of land that is attracting investors. We have schemes like rebates upto 75% on the cost of land for industrial use. The land is as cheap as Rs 2 to 5 lakh per acre.���

The policy of creating and consolidating land banks may help some states scoring vantage points, particularly in the backdrop of increasing difficulties while acquiring land for industrial purposes. Dr Ajay Dua, secretary, department of industrial policy & promotion said that the strategy might work well as problems associated with land acquisition are increasing day by day. ���The land acquisition, particularly in the densely populated states, has been a major problem for quite some time now. After all, along with capital and skilled labour, the land is a very important ingredient for any industrial set-up.

So, if a state has a large track of acquired land, it may score additional points,��� he said.

Rajasthan officials have claimed that the strategy has already started paying dividends. Kuldeep Ranka, MD, Rajasthan State Industrial Development & Investment Corporation, explained, ���Honda Siel has agreed to invest. UK-based Caparo group has also come. The availability of land is a major consideration for all big-time investors. We are consolidating our land bank by acquiring 1,000 acres more at Bhiwadi.���