Punjab sees business in RIL farms

Reliance Industries met the Punjab government to propose a massive agri-initiative.

The Punjab Cabinet is likely to clear the controversial Reliance Industries Ltd (RIL) proposal for a network of rural retailing centres before the month is out.

"The proposal could come before the Cabinet by June 19," Punjab Finance Minister Surinder Singla said.

Speaking to Business Standard over the phone from Chandigarh, Singla firmly rejected opposition to the project and the demand for it to be scrapped on the grounds that it entailed transfer of government land to the private sector for a song.

On their part, RIL sources said the company brass handling the issue had an open mind over the entire matter.

"We have been told the matter is under the active consideration of the state government. We have not acquired any land yet, neither has any land been allotted. In any case, the Punjab project does not involve one huge piece of land. The model is different and centres around setting up rural business hubs in the state. If things don't happen here, we can go to other states that are more willing to be part of this initiative," they added.

In a nutshell, the Reliance Punjab initiative involves setting up about 80 retailing centres and 52 rural business hubs across the state.

The company hopes to eventually handle about 900,000 metric tonnes of grain, 100,000 litres of milk per day and chilling centres at about 250 locations. It is also looking at setting up greenhouses and targets procurement of 50,000 metric tonnes of peas, okra, fruits, tomato, and other vegetables.

At the heart of the Punjab controversy, and unlike the one in Haryana, which centres around a huge integrated special economic zone involving a 25,000 acre piece of land, is the valuation of a 20-acre piece of agricultural land in Mohali that belongs to the State Mandi Board and was acquired 22 years ago at the cost of Rs 2 crore.

Singla says the land is worth Rs 8 crore and will be given to RIL at market price to develop an R&D centre. The Opposition, including Congress leader Jagmeet Singh Brar, says it is worth Rs 1,000 crore and is demanding that it be auctioned.

"We offered this land to Bharti and the Tatas at Rs 35 lakh an acre earlier. To say that it is worth Rs 1,000 crore now is absurd. The price at which the land will be transferred is still being negotiated. Those who say it should not be given (to RIL) don't want Punjab to progress. We've lost the Tata small car project to West Bengal. If more problems are created, RIL will also take their money somewhere else" Singla said.