"They approached us for land and we are giving it to them at a much lower rate," Chief Minister Mamata Banerjee told reporters.
She said that 10 acre at Rajarhat had been allotted free to Presidency College to open its second campus.
Stating that it was part of a 20-acre plot held by the health department, she said it would need the land for a medical college and hospital on the remaining 10 acre.
The chief minister also announced setting up of a secretarial committee for bringing unused areas of tea gardens under the jurisdiction of panchayats.
The committee, including state home secretary, rural and urban development secretary, labour secretary and labour commissioner, would talk to tea garden owners and submit their report in seven days.
Stating that poor adivasi people living in tea gardens with no access to electricity, water, roads and houses, she said, would be benefited with the areas coming under the jurisdiction of the panchayat.