Friday, July 23, 2010

Nano effect: Sanand land turns gold

GANDHINAGAR: Two years ago, Bharatbhai Bhikhubhai’s 10 acre near Sanand was worth Rs 20 lakh. On Friday, this farmer received a cheque over Rs 5 crore for it from Gujarat Industrial Development Corporation (GIDC), which is building an estate here.

Ever since Tata Motors shifted the Nano project from Singur near Kolkata to Sanand in October 2008, farmers in the region are thanking their stars. Land prices in Sanand have shot up nearly 25 times in less than two years. Wanting to avoid controversies, the Gujarat government has started acquiring land from farmers at rates much higher than prevalent market prices.

‘Market plus’ is the buzzword for GIDC, which has acquired land at Rs 1,200 per sq metre—this comes to Rs 48 lakh per acre. The corporation is in the process of acquiring 770 hectares of Bol village for Rs 900 crore. The state government had offered land to Tata at Rs 890 per sq metres two years ago. Farmers are laughing all the way to the bank as land rates in and around Sanand were in the range of Rs 2 lakh per acre until October 2008—today, it is Rs 45 lakh per acre.

GIDC plans to adopt this policy while setting up a huge land bank of 35,000 hectares to set up 30 new GIDC estates, even as expanding 15 existing ones. “Of the 35,000 hectares state-wide, 9,000 hectares are government land, while the rest of it will be bought from farmers,” said a government official. GIDC has applied the same ‘market plus’ formula to acquire land at other places in Gujarat, too. It is acquiring 600 hectares in Halol and 1,450 hectares in Dahej.

“At both the places the market price is considerably lower than in Sanand district. In Dahej, land is being acquired at 175 per sqm,” a senior official said. “All farmers of the village have unanimously taken the decision to sell land to GIDC as the government is offering very good rates. This has changed our lives,” says Bharatbhai, who plans to invest the money in land in Kheda, Halvad and Rajkot. Another farmer, Kanubhai Bhanubhai, who owned eight acres in Bol village, plans to use the money to start a business for his son.

ET

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