Modi govt may offer surplus PSU land for new infra projects to sidestep lengthy land acquisition process

NEW DELHI: The government is eyeing nearly 18 lakh acres of land — or nearly five times the area of Delhi — available with various state-run companies, to quickly get manufacturing and infrastructure projects off the ground.

“The idea is that since land acquisition is a very long-drawn process, we can identify the land available and then match it with the requirements of a new project,” said a senior official of the ministry of heavy industries and public enterprises.

Special emphasis is on projects that can be executed quickly with the help of the recently concluded the India-Japan investment promotion partnership, the person told ET.

The ministry has sought details of land available with public sector companies (PSUs) and a meeting is likely to be held next week to firm up details.

The ministry’s own estimates suggest that there are 18 lakh acres of land available with PSUs. Out of this, about 8-10 lakh acres — some of which in top metros such as Mumbai and Delhi — can be utilised quickly.

A senior official with a state-run company confirmed that land details have been sought. “We are in the process of compiling the data. Some land is free hold and other has been given by the respective state governments, so it is taking some time,” he said.

This person said the government will first utilise land available with sick companies, where no operations are being undertaken.

The government has already identified around 12 state run companies that are no longer operational but have surplus land that can be used.

The list includes Hooghly Dock & Port Engineers Ltd, British India Corporation, Elgin Mills Company, Hindustan Vegetable Oils Corporation and Birds Jute and Export Ltd.

“Some of these companies are not in operation and have very few employees left. We are examining these firms from both financial viability and HR issues.

They have some land that can be utilised,” the official said. A cabinet note has been floated in regards with closure of six companies under the ministry of heavy industries — Hindustan Photo Films, Tungbhadra Steel, Hindustan Cable, HMT Bearings, HMT Chinar Watches and HMT Watches.

Last week, cabinet cleared an “improved” voluntary retirement scheme in Central Inland Water Transport Corporation, which will be followed by disinvestment. A committee of secretaries is likely to be tasked with this entire process of identifying and giving out surplus land.