The Sigaddi growth centre, being developed by the government-owned State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul), has hit a roadblock due to the steep hike in the prices of industrial plots — a move that has been criticised by the Comptroller and Auditor General (CAG) of India.
The price of an industrial plot at Sigaddi, set at Rs 3,500 per sq meter by Sidcul – the nodal agency for industrial development – two years ago, is considered very high, and industry has not shown any interest.
In its last meeting, the Sidcul board had called for floating Expressions of Interests (EOIs) in order to ascertain the real value of industrial plots at the Sigaddi growth centre in the Kotdwar area of Pauri district, so that land prices can be brought down to match market expectations.
Inquiries, however, revealed that Sidcul is yet to float such EOIs. “We have not yet started the process of floating EOIs, as we are not too sure how they will help us in evaluating land prices,” said a Sidcul official. On the other hand, Chief Secretary Subhash Kumar, who is also chairman of the Sidcul board, said he would look into the matter.
The development of the growth centre had come under the scrutiny of the CAG, which had stated in its report that priority was given to making more money by way of allotment at the growth centre.
The scheme to set up the growth centre was introduced by the government to encourage industrialisation in backward areas. Under this scheme a growth centre was sanctioned in December 2003. Sidcul acquired 100 acres of land for the growth centre, and 60.87 acres was developed for allotment to entrepreneurs.
Sidcul’s records showed that only 32.93 acres had been allotted to 37 industrial units and 27.94 acres were vacant until August 2010, the CAG report said.
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Of the above allotments, 29.42 acres were allotted to 31 units during the years 2005 to 2007 at a fixed price of Rs 450 per sq meter, and only 3.51 acres of land to six units was allotted during the last three financial years, it said.
The audit observed that the slow rate of allotment was mainly due to the “faulty” policy of bidding by Sidcul from the year 2007-08, which stipulates that the industrial plots will be allotted only to the highest bidder and to those bidders who quote a rate that is within 30 per cent of the highest bid.
By adoption of this policy, only two allotments (at the rate Rs 2,800 per sq meter and Rs 2,200 per sq meter) were finalised through a bidding process comprising 27 applicants, as there were huge variations in the rates quoted by bidders.
Later, the state government in July 2008 also issued an order that further allotment of plots would be made at the rate of 125 per cent of the price of the last allotment. But plots for only four units were allotted at Rs 3,500 per sq meter up to August 2010, the report said.