Price negotiations for land on between Bengal govt & IT cos

KOLKATA: The Buddhadeb Bhattacharjee government expects to complete price negotiation and allocate land to software biggies, Infosys and Wipro, at Rajarhat by December. While Wipro has already shown interest, senior executives from Infosys are soon likely to evaluate the new plot, top sources in Writers��� Building said.

At the same time, the state is also gearing up to come up with a negotiation mechanism which it can put forth to the two software bellwethers. At present, it is toying with two ideas ��� reduce the price of Rajarhat land to around Rs 1 crore per acre as compared to the last quoted rate of Rs 1.5 crore per acre; and if this does not find favour, it will then try to provide flexibility in land use for non-IT purpose to both the companies.

"It is not so easy to come up with a negotiation mechanism for the two companies. Both of them have their own preferences and the government has to offer a single package to them. We have invited both the companies to gauge what package will suit them most," the senior government official said.

In fact, a couple of weeks ago, the state IT department wrote a letter to Infosys and Wipro to officially inform them about the 45-acre plot at Rajarhat. Though the letter quoted a price of Rs 1.5 crore per acre, it had categorically mentioned that the government will be ���open to negotiations���.

"The IT department is already in talks with the housing department to look at possibilities to reduce plot prices at Rajarhat. There is a possibility of reducing the price up to Rs 1 crore per acre, since the chief minister himself is taking an initiative. There might be need for a cabinet approval, which should not be a problem, as the state is extremely keen that Infosys and Wipro expand their base here," the government sources said.

The government is also evaluating possibilities to provide flexibility to the two IT companies to use part of their land for non-IT purpose. However, this clause is likely to be applicable only if the two companies buy the land at the government-quoted rate of Rs 1.5 crore per acre.

"Since the land is quite premium, the IT companies will have the liberty to use part of it for other commercial purposes. Such indirect subsidy could be another option. But the final package will be decided only in consultation with the two companies," sources added.