Monday, February 19, 2007

RIL offers hefty price for farmland reports
Reliance Industries, India's biggest company by market value, is offering Rs 37.5 lakh a hectare, over 10 times the ready-reckoner price, to acquire 10,000 hectares of land from farmers for its special economic zone on the outskirts of Mumbai.

By a rough estimate, the company will have to pay Rs 3,750 crore for land acquisition.

The company is offering Rs 25 lakh a hectare for land under paddy cultivation.

On top of this, the firm is offering Rs 12.5 lakh per hectare if a farmer does not opt for the land offered by the company at an adjacent site. Reliance has earmarked 12.5 per cent (1,250 hectare) of the total land to be acquired for farmers.

The company will also offer free vocational and technical education to a member of each of the 17,000 families whose land is acquired.

During the training period, the minimum agricultural wage of Rs 60 a day will be paid as stipend. If a landowner does not want the training, he is entitled to Rs 3 lakh as one-time compensation.

The ready-reckoner rate is the one taken to compute stamp duty in real estate transactions. Builders complain that it is often higher than the rate at which transactions are struck.

"We have submitted our compensation package to the state government. But if it asks us to give even higher compensation to farmers, we will be bound by that," said Dilip Chaware, the spokesperson for the company.

Unveiling its plans on Monday, Reliance Industries said it would invest Rs 31,000 crore over 10-15 years in its SEZ project, which would come up as two adjacent zones on more than 14,000 hectares. The company would spend Rs 16,000 crore in the development of infrastructure.

"Although we call it a special economic zone, it is going to be a city," Chaware told reporters. The entire project combines two adjacent zones in Mumbai and Navi Mumbai. "The project will be floated by companies that are a part of the Reliance Group."

The group, which is setting up another SEZ at Navi Mumbai, has already been sanctioned 1,600 hectares of the 4,000 hectares needed.

No comments: