Land prices rise in Bina on refinery hopes

Local people in Bina (Khurai tehsil), some 150 km from Bhopal, have jacked up land prices and house rentals in anticipation that the Bharat-Oman Bina refinery project will need more land areas and accommodation.

Government officials say private land rates have gone up by at least three times while government land rates have gone up by 20 per cent. But locals say agriculture land prices have gone up eight times.

Prices of land on the Bina-Kurwai road are as high as Rs 8 lakh per acre (4,840 square yards) from Rs 20,000-50,000 per acre a few months back. Similarly house rentals have gone up to Rs 6,000 per month from Rs 800 per month for a two-bed room house.

The economy of Bina, a small town that falls on the Delhi-Bhopal railway line with a population of 175,000 (2001 census), thrives mostly on railway workers and small farmers.

Bharat-Oman refinery had acquired 3,200 acres out of which 936.61 acres was government land and 356.16 hectares was private land, Arun Singh, tehsildar and executive magistrate, Khurai tehsil told Business Standard. He added that the company needed more land in nearby 10-12 villages.

Meanwhile RP Singh, managing director of Bharat Petroleum, the promoter company of the project said, "We have disbursed a compensation of Rs 28 crore to the local farmers."

A Gwalior-based businessman has recently set up Bina's first centrally air-conditioned hotel in anticipation that frequent trips of officials, politicians and journalists to monitor the project will bring him some business.

However a fatigue factor has gripped the locals after a long wait of more than 15 years. "It is not confirmed if the project is really coming up. We have overheard officials that the project will again be delayed after initial work of construction," said a local farmer, Santosh Yadav.

He said land rates have skyrocketed to Rs 5-6 lakh per acre since builders from Indore, Bhopal, Delhi, Agra and Gwalior were making enquiries there.

Locals also said some well-informed businessmen had sold 100 acres of land recently after a long wait for the project.

"Prices have gone up. Farmers, who have surrendered their land for the project, have been given compensations of to a maximum of Rs 1 lakh per hectare depending upon land area. However land prices in nearby areas, particularly on Kurwai road, have gone up to a maximum of Rs 3 lakh per acres from Rs 60-70 thousand per hectare," said Mr Singh.

There are 40 officials on deputation to Bina project. They are finding it difficult to get accommodation in the small town. "We are paying a rental of Rs 5500 per month of a house which is just a make-shift. Once the hostel is completed the rates will automatically go down."

But work orders worth Rs 2200 crore are yet to be awarded. Staff of contractors and sub-contractors will need more accommodation as a result the house rentals may go up further. District collector (Sagar district) Shivshekhar Shukla did not have much idea about rentals and land prices.

The local politicians including MLA Ms Sushila Sirothia reportedly "remains busy in meeting with industrial minister Mr Babulal Gaur to arrange sub-contract work for local people."

While none urged state government to make plans for the town accommodate 10000 workers. An insider in Bina project said a township with all basic amenities of 500 houses has been planned.

It will accommodate all workers. But who will answer the local farmer like Kunwar Singh Thakur from nearby Kirwara village and Rajesh Rai who ask if the refinery is really coming up?