MIDC hikes plot rate despite shaky investment climate


* The move raises eye-brows considering the volatile situation in industry sector

By Kartik Lokhande 

Right from the top leaders to policy planners, everyone agrees that economic situation is shaky and investment climate is rough. However, Maharashtra Industrial Development Corporation (MIDC) does not appear to be thinking so. In the latest development, MIDC has more than doubled the rate of plots for industries in areas like Butibori.
The plots in industrial areas were available for Rs 520 per square metre previously. In the latest board meeting, MIDC decided to increase the rate to Rs 1,150 per sq mtr. Vijay Bhakre, MIDC Regional Officer (Nagpur), confirmed the development. He told ‘The Hitavada’ that the increase was due considering the higher cost at which land for Butibori additional area was acquired and certain other factors.
“Still, the rate is just Rs 110 per sq ft. The market rate for land outside MIDC area in the same belt is Rs 700 to Rs 800 per sq ft. Compared to that, MIDC’s rate revision is still rational and it is appropriate considering the best infrastructure facilities we are providing to industries,” Bhakre said. According to him, the decision was taken to protect land in Butibori area from land-grabbers. For real investors, he added, even the revised rate was not high. As far as land availability was concerned, he said, MIDC had got 50 hectares of land ready for allotment in Butibori area apart from plots in additional area.
Obviously, in the given volatile situation in economic sector, MIDC move has drawn flak from industry sector. Hemant Ambaselkar, President, Butibori Manufacturers’ Association, feared that the move would land industries into rough weather. “Already, Butibori additional area is vacant. Land has been acquired but no industry has come owing to lack of infrastructure development. Increase in rate of plots will further discourage new investors and those seeking land for expansion units,” he felt.
According to Ambaselkar, increase in rate of plots should have been in slabs depending upon size of plots. Besides, without conducting regional-level consultations, decision should not have been taken in this regard. Ambaselkar said that if the Government wanted events like ‘Advantage Vidarbha’ to attract investors to Vidarbha region, concession in rate of plots must be given to D+ industrial areas.
Mayank Shukla, President, MIDC Industries Association, felt that the MIDC decision of effecting rise in rate of plots would prove to be a setback in attracting investment to Vidarbha region in general and Nagpur in particular. Already, he said, investment climate was not good. There was recession, economic crisis, slide in value of rupee vis-a-vis dollar. “Industries are struggling every bit about finances. Increasing rate of plots is no encouragement to industries in such a situation. In fact, MIDC decision will discourage new industries,” he said.
In a situation when the Memorandums of Understanding (MoUs) signed during ‘Advantage Vidarbha’ investor summit had not materialised, why would investors think of coming to Vidarbha region if rate of plots in MIDC area were higher, he asked. If the Government wanted to provide a boost to industrial development of Vidarbha region, it should rationalise power tariff and also heed to problems already being faced by industries. 

(Published in The Hitavada CityLine on September 2, 2013) 

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