Nagpur SEZ land rates treble in a year

The Maharashtra Airport Development Company (MADC), which is setting up a special economic zone (SEZ) and a multi-modal air cargo and passenger hub at Nagpur (Mihan), has increased the rates of the SEZ land for the third time in a year.

The Gurgaon-based infrastructure company DLF had to shell out Rs 35 lakh an acre, compared with Rs 15 lakh an acre paid by Satyam, which was the first to acquire land in the area.

Later, the rate was increased to Rs 25 lakh. "The cost of land is rising at a rate of 10 to 12 per cent every year owing to escalation in the rates of cement and steel. The present rates are slightly below the approved increase and they had been so maintained to woo more investors to the region. A hike can be effected soon. So far over 600 acre have been allotted at different rates," said R C Sinha, managing director, MADC.

DLF plans to build an IT and IT enabled services (ITeS) hub on the 153 acre land it has acquired in the SEZ. It is in talks with leading companies in the field such as Genpact, Nokia, Ericcson and ABN Amro for space in the proposed project. A DLF spokesperson confirmed that an "in-principle" green signal had been received from these companies.

According to an agreement between DLF and the user companies, the basic infrastructure will be provided by DLF, from which these companies will buy space.

"DLF would invest over Rs 1,500 crore in five to eight years as the area will be developed in phases," the spokesperson said.

Similar zones have been developed by DLF in Hyderabad, Cochin, Ambala, Kolkata and Pune and it has a client base of 300 companies. The SEZ is to come up over an area of 1,400 hectare.

Of this, 400 hectare have been earmarked for facilities such as road, power transmission and distribution system, green zones and drainage.

Major companies which have booked land include, Satyam, L&T, Dell Corporation, Shaporji Pallonji, Ambuja Reality-RNZ Group Combine, and KSL Industries.

Though Infosys had evinced interest, it has not yet purchased a plot. Similarly Patni Computers has chosen to set up its facility at Aroli near Mumbai, Sinha said.

MADC has allocated contracts worth Rs 324 crore for provision of basic facilities in the SEZ. It has till now been able to meet its expenses through internal accruals and through land sale.