Local builders may foil the plan of big real estate firms to take up land for developing Indore's "product-specific special economic zone" or Crystal IT park and other IT parks planned at Indore, Bhopal and Gwalior. |
The local builders have increased real estate prices by 25-50 per cent in some areas near the Bairagarh Airport locality and Misrod Road in Bhopal, some prime localities in Indore, and near the Counter Magnet City in Gwalior on speculations that development activities for IT parks will soon take place. |
Recently, real estate giants like DLF group, Unitech and Rajan Raheja group discussed the take over of these projects with the state government and also expressed their desire to acquire land to develop infrastructure for IT Park. |
Unitech and DLF are, it is learnt, seriously working on the Madhya Pradesh project. |
The state government has plans to develop IT park near Bairagarh Airport in Bhopal and near Counter Magnet City in Gwalior. |
A Crystal IT park has already been developed in Indore but it has no takers so far. Since these companies have not yet made any commitment to the state government, it plans to allow private real estate players to develop and market the proposed IT parks. |
"Unitech, Raheja group and DLF have shown interest in our IT park, but they want government land to be acquired for them for the purpose. These private parties do not want private land," said a government source, adding that the local builders block prime land to fetch more money. |
Raheja group is exploring possibilities to buy Indore's Crystal IT Park. Speaking to Business Standard, a company official said, "Our plans to make investments in the state are still under consideration." Representatives from these companies recently met the state officials to hold talks over the proposed plans. |
The state IT department has planned to invite big firms for developing IT parks through the process of bidding. |
"They have shown interest in the state but we have to first acquire sufficient land for them," said Padmvir Singh, Principal Secretary, IT Department, adding, "but we will have to handle price factor properly." |
The Indore Audyogik Kendra Vikas Nigam, a subsidiary of the State Industrial Development Corporation, made bids to attract investment in Crystal IT Park but nothing worked out. However, it has now decided to privatise the park. |
A government source told Business Standard that Raheja group has demanded 600-700 acres of land in Indore, and 300-400 acres of land in Bhopal for development of IT parks. |
However, the state government has only 200 acres of land near Bairagarh airport area. Similarly, it has 12 acres of land in Gwalior. The state government has to acquire huge area to meet the requirements placed by these companies. |
The new IT policy offers financial assistance of Rs 25,000 per employment provided a company is able to create a minimum of 100 jobs. |
Though the state government is looking at IT firms to boost its economy, price control on real estate, one-to-one interaction with IT-enabled service providers will be the decisive factors. |