21/07/2014

 

Hike in BIADA land rates may hit industrialization

 


Patna,(BiharTimes): As land rates per acre in industrial areas under Bihar Industrial Area Development Authority (BIADA) went up for the first time on June 18 industrialists fear that it would be more difficult to get new projects in the state.

However, BIADA officials said the increase in rate was due since last year as the industrial incentive policy states that BIADA land rates would be revised every 10 years.

Thus officials said that it was due last year, but it could not be done.

But the president of Bihar Chamber of Commerce and Industries, P K Agrawal, criticized the hike stating that it would be detrimental for industrialisation in the state.

According to Agrawal BIADA was set up by the then government in 2003 so that industrialists could get land at reasonable prices. It does not sell land to the industrialists but leases it out for 90 years Now, very few industrialists would be able to take land at such high rates.

An industrialist wishing to take land has to pay 30 per cent of the land cost immediately. The rest can be paid over seven years.

A delegation from the organisation met chief secretary Anjani Kumar Singh on July 16 to discuss the issue as well. Although the revision will not affect industrialists with agreements drawn up before, new projects or land transfer would be hit.

Reports said BIADA has not made fresh acquisitions for almost a year and just has around 150 acres of land left in its kitty.

Around 1,850 acres are stuck in litigation too.

Land at the Patna’s Patliputra Industrial Area, which incidentaaly has no land left, the rate per acre has gone up from Rs 2.36 crore to Rs 14.95 crore.

Bhagalpur division’s Barari would come for Rs 3.85 crore per acre instead of Rs 8.82 lakh per acre.

In Kishanganj’s Kharga Industrial Estate, the cost of land per acre has gone up from 9.52 lakh to Rs 3.15 crore.

In the industrial estate at Murliganj in the Darbhanga division, an acre would now cost Rs 3.55 crore against the earlier rate of Rs 2.6 lakh.


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