Pfizer land to cost L&T arm Rs 182 cr

The 22-acre plot in Chandigarh is one of the biggest in the area.

The Chandigarh administration will earn about Rs 182 crore as conversion fee for the erstwhile unit of Pfizer Pharmaceutical in the Chandigarh Industrial area phase-I, which was sold for Rs 278 crore.

The 22-acre plot (one of the largest in the industrial area) was bought by CSJ Infrastructure (a group company of L&T), which intends to construct a mall, multiplex or a hospital.

According to sources, the pharma unit, set up in 1961, was shut down in 2003 as it manufactured obsolete molecules and further investments in the Chandigarh plant were not a viable proposition.

Of the 1,500 working units in the industrial area of Chandigarh, 29 are under the process of conversion. Another factor governing conversion charges is power consumption. An industrialist told Business Standard the existing load of power of all units was about 6,000 kw and the electricity wing of Chandigarh has projected an additional load of 9,000 kw for the upcoming commercial projects.

The administration has decided to charge Rs 19,200 per square yard for converting the small lease-hold plots into free-hold plots. According to the owners, this would cost them about Rs 32 lakh for one kanal plot, which was not a viable option for them.

"The commercial projects have been allowed a floor area ratio of 2:1 (200 per cent of plot area can be constructed) while the original occupants like us are allowed a 60 per cent covered area on the ground floor and 15 per cent area on the first floor," said a senior industrialists.

Most of the plots in phase-II of the industrial area house SMEs (auto ancillaries and sanitary units) and were given possession on a general power of attorney.

In the past few years, the manufacturing industry in Chandigarh has languished as much attention was paid to service sector. As a result some of the units relocated themselves in the Baddi-Barotiwala belt.

The intermingling of industrial and commercial ventures would not be conducive for the long term growth of the town, said one of the industrialist.