Cidco duo goes local for airport project

NAVI MUMBAI: The strategy of the City and Industrial Development Corporation (Cidco) MD, Sanjay Bhatia, and joint MD, V Radha, of involving local political representatives and spending time with villagers for the airport project to move ahead has paid off. It has helped resolve much of impasse with the villagers for the Rs 15,000-crore Navi Mumbai International Airport (NMIA) project.

Apart from engaging local leaders, they announced a slew of development projects too for the villagers. This has boosted the confidence of the villagers, who will get uprooted from their ancestral homes once their lands are acquired for the project.

The two senior officers were quick to realize that mere meetings and taking administrative decisions wouldn't help. So, they took the help of political leaders to cross the hurdles.

The political face of Cidco, chairman Pramod Hindu Rao, told TOI on Thursday while laying the foundation stone for the development of Pushpak Nagar, "My only request is more development for villagers."

Even as 671 hectares from 14 villages still remain to be acquired, Cidco is upbeat and hopeful with "more and more villagers expressing their willingness for the compensation package".

With Pushpak Nagar soon set to be a reality, Cidco has moved a step ahead. It has also send the message of a better future among villagers.

The expenditure for converting Pushpak Nagar into a modern hub for a future township is Rs 560 crore. Developed plots would be given to those whose lands would be acquired for the project.

"The success achieved last week, when Vahal villagers agreed to accommodate natives of other villages who would be uprooted, couldn't have been possible without the intervention of local political leaders," said Radha.

Both Bhatia and Radha have acknowledged the role played by local MLAs Prashant Thakur (Congress) and Vivek Patil (PWP).

The compensation package of 22.5% with 2 FSI for land acquisition was worked out by Patil, who at the foundation laying ceremony for Pushpak Nagar urged Cidco to walk the extra mile to reach out to more villagers.

The strategy of securing the future of project affected people and enabling the youth from such families to carve out a career for themselves through

training

programmes and specialized courses has been a major confidence booster

Maharashtra clears record payout to acquire land for new airport

MUMBAI: The state cabinet on Sunday finally put its seal on the record compensation package that it will offer to villagers to acquire their land for the development of the Navi Mumbai international airport. TOI had first reported the offer on August 13 last year.

Calling it "a much better offer than what the residents could get under the new central law on land acquisition", the state said the villagers would get back a plot measuring 22.5% of their original land, fully developed and in a non-Coastal Regulation Zone (CRZ), right next to the airport; they will also get an extra floor space index (FSI) of 2. The worth of the returned land—the original plots are in CRZ—will translate into Rs 16 crore per hectare. With this offer, which includes several other perks, the state expects to win over the six villages, which have been holding back their land as they were unhappy with the compensation earlier offered to them.

Those who do not accept the state government's package will be compensated according to the new Land Acquisition Act, which came into force in January. The central law allows 20% of the acquired land to be returned to project-affected persons. Kopar residents, whose land has been acquired for a landfill site, will not be compensated with the state package but for them, a separate deal will be worked out. The Konkan divisional commissioner will decide on it.

With the cabinet's approval, the state has cleared a major hurdle to the construction of the airport. "This has come at the right time. If the compensation was not decided in the next three months, we would have had to begin the process of acquisition all over again under the new law and the project would have been as good as doomed," said a source, maintaining that the new package was "many times better" than what the central law offered.

The cost of developing the land, which will be returned to villagers, will be borne by CIDCO, which is the developing agency of the new airport; under the central law, the cost is supposed to be borne by the affected persons themselves. Besides, those with tenements will be provided with houses three times the size. The compensatory land will be offered in a new township called, Pushpak Nagar, to be built along the Mumbai-Pune bypass near Panvel .The CIDCO has also been conducting various job-oriented courses for the PAPs.

"A joint land survey is currently underway and the compensation will be awarded within the next two to three months. The new city is already being developed where the PAPs will be shifted within a year," said Sanjay Bhatia, managing director, CIDCO.

Compensation within 3 months for PAP (Navi Mumbai Airport Project Affected People)

MUMBAI: The cost of developing the land, which will be returned to the affected villagers, will be borne by Cidco, which is the developing agency of the new airport; under the central law, the cost is supposed to be borne by the affected persons themselves. Besides, those with tenements will be provided with houses three times the size.  The compensatory land will be offered in a new township called, Pushpak Nagar, to be built along the Mumbai-Pune bypass near Panvel. Cidco has also been conducting various job-oriented courses for the PAPs.

"A joint land survey is currently underway and the compensation will be awarded within the next two to three months.  The new city is already being developed where the PAPs will be shifted within a year," said Sanjay Bhatia, managing director, CIDCO

Navi Mumbai Airport: 6 Villages Reject Package Again

Stress they're not against Navi Mumbai airport project, but the compensation being offered to them.

Villagers and project-affected families gathered at the Shri Cheroba ground in Kolhi village on Tuesday. - Nandu Kurne/DNA

Villagers from six villages opposing Navi Mumbai International Airport (NMIA) along with project affected persons (PAPs) of other villages on Tuesday presented a united front at the Shetkari Parishad held at the Shri Cheroba ground in Kolhi village to oppose the relief and rehabilitation package of the state government.

The leaders at the gathering, who were guided by former Supreme Court justice PB Sawant and former Bombay high court judge BG Kolse-Patil, told the villagers not to get bogged down by “pressure tactics” of the state government and compromise on their demands.

“Cidco and the state government will not let the airport come up elsewhere since the industrial corridor is planned here. They are just trying to pressurise you... If the state government is not in a position to fulfil the demands of villagers, it should scrap the project. Either way, villagers are not at loss because the rates of land here will touch Rs100 crore in the days to come,” said Kolse-Patil.
Villagers who have formed the Navi Mumbai Antarrashtriya Vimantal Sangharash Samiti stressed that they were not opposing the airport project but were against the package that has been offered to them. The former high court judge said, “There needs to be complete transparency while carrying out negotiations for the project and the details of every meeting should be made public.

We have reached this stage of struggle because you all were let down by your political leaders during earlier negotiations.”

They said the state should only deal with Navi Mumbai Antarrashtriya Shetkari Sangharsha Samiti, which has been floated by farmers from these 6 villages after they parted ways with the Prakalpagrast Sangharash Samiti, led by local political leaders.

Kolse-Patil did not forget to warn the villagers that they should remain united. “The government tries to pressurise local leaders and starts sending notices and also arrests them. In such cases, villagers should remain united. Also, they should see to it that no outsider comes to villages and tries to influence villagers over the package,” he said.

Mahendra Patil, former sarpanch of Pargaon, said, “Cidco is offering us Rs1,000 per sq ft for construction of homes where as the rate in this area is Rs3,000 to Rs3,500 per sq ft. They will be taking 100% of our land and in return will be offering us only around 15% of land. The deal makes no sense.”

The acquisition of land in these six villages is significant since the main runway and core area of operations of the new airport will be in this part. The total area of land to be acquired from these villages is 457 hectares.

The main demand includes 35% developed plot with FSI of 3 and cash compensation of Rs6.25 crore per hectare. The other option forwarded by the committee to the state government includes distribution of plots under 12.5% scheme with an FSI of 3 and cash compensation of Rs16 crore per hectare. The third option which the farmers have put forward is leasing out their land to Cidco or the state government.

Land Bill may push up prices 15-45%, say realty players

New Delhi, Jan. 1:   

 

Amid concerns over cost escalation and execution delays, the Land Acquisition Act has come into force from January 1, 2014. 

Real estate players say that for large infrastructure and residential projects, cost escalation due to the Act may range between 15 per cent and 45 per cent. 

The Rural Development Minister, Jairam Ramesh, however, allayed industry apprehensions on Wednesday, saying there was no bar whatsoever on purchase of private land. 

The Land Acquisition Bill or The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 had received the President’s assent on September 27. 

The Bill was brought as the archaic Act of 1894 suffered various shortcomings, including silence on the issue of resettlement and rehabilitation of those displaced by land acquisition. 

Ramesh said the new Act applies only to land acquired by Central and State authorities for any public purpose. He, however, said that there was no bar whatsoever on purchase of private land.

From January 1, the Government will not acquire any land for private investors for their private projects, he added. 

The rehabilitation and resettlement clauses of the Bill are expected to push up land prices, as the expectations of land owners will be higher, real estate players said. 

The largest realty player, DLF, said delay in land acquisition may also lead to cost escalation.

Mohit Arora, Director, Supertech, said existing projects may not see any price hike, but all new projects could see land getting dearer and project costs going up by nearly 50 per cent.

 

Key guidelines

The key guidelines of the Act include a Social Impact Assessment study to be carried out, outlining how the acquiring parties intend to use the land, and how the original inhabitants or owners will be rehabilitated. The Act now also puts definite timelines on project completion and land use..

Vikas Gupta, Joint Managing Director, Earth Group, said, “Implementation of this Bill will hamper prospects for realty developers and builders. Property prices are bound to shoot up even as farmers will benefit.” 

Industry players say the provisions of the Bill will be applicable in cases of land acquisition of 50 acre in urban areas or 100 acre in rural areas. The compensation for acquisition may double in urban areas and will go up by four times in rural areas. They also point that “a willing buyer and willing seller should be excluded from the Act.”

 

Liquidity issues

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said, “Some developers may continue to struggle with liquidity issues and be forced to offer some discounts and/or freebies to boost sales. Further, the implementation of various reform measures like the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 and the proposed Real Estate (Regulation and Development) Bill 2013 will see increased participation from all stakeholders like Government, developers, real estate service providers, and investors alike.” 

In its realty outlook, Knight Frank said high interest rates, spiralling vacancy levels and lower margins arising from inflationary pressures led to a slowdown of construction activity, leading to a drop in new launches and also delayed project delivery by several months.

Changes to be made to 13 laws for land acquisition

Thursday, Jan 2, 2014

Union minister for rural development Jairam Ramesh said on Wednesday that within one year amendments will be made to 13 central government laws for the effective implementation of new land acquisition law which came into effect from January 1.

“From now onwards no land will be acquired or purchased on the basis of 1894 Act in which government was the sole decider and farmer did not have any say,” said Jairam Ramesh.

“Within a year amendments will be made to 13 central laws/act related to land acquisition.

Prominent among the laws to be amended are the :
Coal Bearing Areas acquisition and Development Act 1957,
National Highway Act 1956
Land Acquisition Mines Act 1985,” added Ramesh.

On the fate of the amendments if UPA government does not come to power after 2014 general elections, Jairam said, “Almost all political parties have consensus on the land acquisition bill because it is going to help the farmer.

Parties including BJP, SP, BSP and of course Congress have praised the bill and accepted the need of amendments for an effective implementation of the act,” said Ramesh.

According to the law, the rules of the act will remain in gazette of India for 45 days and around February 15 or 16, these rules will get final nod. The act would not only provide four and two times compensation for land in rural and urban areas respectively, but also provide compensation as per new act for land acquired under old Act.

Navi Mumbai aiport: Cidco waits for consent of two villages

The City and Industrial Development Corporation (Cidco) is hoping to get the consent of two remaining villages within a week and secure some other necessary approvals before initiating the bidding for the construction of the Navi Mumbai International Airport. 

The state last month received the consent of villagers in eight clusters, whose lands are to be acquired for the airport project at Panvel. But two other villages had apparently sought some time to decide on the package offered by the government as they were in the process of elections for the gram panchayat.

“We have started the measurement of the area together with the villagers who have agreed to part with their land. This will help us to compensate them  properly and at an early date,” said Sanjay Bhatia, MD, Cidco.

Bhatia also informed that Cidco had received the approval of the steering committee of the Union civil aviation ministry to float the global tender for the project, but it had decided not to start the process until it gets the consent from the two villages, Pargaon and Hol. He said negotiations have been positive.

According to the package offered by the state government, project-affected people would get developed land to the extent of 22.5% of the area that they surrender. Of this developed land, 12.5% would have an FSI of 1.5 and the rest 10% an FSI of 2.5. They will also get shares in the new company, alternate land three times the size of their current residence along with Rs1,000 per sq ft as construction cost, besides job guarantees for their children.

“The investors or bidders should be confident that their investment will not go waste or get held up midway on account of some minor approvals. Once the approvals are clear, more bidders will participate,” Bhatia said.

A Cidco official said that villagers in the two remaining villages had assured that they were prepared to accept the government offer, but would have to discuss the issues before signing the agreement. “We are certain that they will reach an understanding within a week,” the official said, requesting anonymity.

The airport project, estimated to cost Rs15,000 crore, is to be taken up in four phases. The first phase is to be completed by December 2017.

Land Acquisition Bill : आज से लागू नया जमीन अधिग्रहण कानून

आज से एक और बड़ा बदलाव हो गया है। राहुल गांधी के सबसे पसंदीदा बिलों में एक जमीन अधिग्रहण बिल आज से लागू कर दिया गया है। ग्रामीण विकास मंत्री जयराम रमेश ने नए जमीन अधिग्रहण कानून का नोटिफिकेशन जारी कर दिया है।

जयराम रमेश का कहना है कि जमीन अधिग्रहण के नए नियम पर अब लोगों से राय लेंगे। जमीन अधिग्रहण कानून को 15-16 फरवरी तक औपचारिक रूप से नोटिफाई करेंगे। वहीं आज से 1894 का जमीन अधिग्रहण कानून रद्द माना जाएगा। वहीं नियम बनाए बिना भी नया जमीन अधिग्रहण कानून लागू हो सकता है।

नए जमीन अधिग्रहण बिल में गांवों में हर्जाना जमीन की कीमत का 4 गुना देने का प्रावधान है। वहीं शहरी इलाकों में हर्जाना जमीन की कीमत का 2 गुना देना होगा। साथ ही निजी कंपिनयों के लिए 80 फीसदी जमीन मालिकों की मंजूरी जरूरी होगी। पीपीपी प्रोजेक्ट के लिए 70 फीसदी जमीन मालिकों की मंजूरी जरूरी होगी।

नए जमीन अधिग्रहण बिल के तहत सरकारी प्रोजेक्ट के लिए किसी की मंजूरी की जरूरत नहीं होने का प्रावधान है। साथ ही पूरी पेमेंट होने तक जमीन मालिक को नहीं हटाया जाएगा। मुआवजे के हकदार जमीन पर आश्रित लोग भी होंगे। निजी कंपनियों को भी पुनर्वास पर जोर देना होगा। अधिग्रहण पूरा नहीं होने पर मुआवजा नए कानून के हिसाब से होगा। 5 साल में परियोजना शुरू नहीं हुई तो अधिग्रहण निरस्त माना जाएगा।

The DMIC project will be delivered on schedule: Amitabh Kant talking future of India..

Downplaying concerns of delay, Amitabh Kant, managing director of Delhi-Mumbai Industrial Corridor Development Corporation (DMIC), says the project will be delivered on time. In an interview with Nayanima Basu, he says most of the issues concerning regulatory hurdles and land acquisition have been sorted out. Edited excerpts:

It has been almost seven years since the DMIC was conceptualised by former commerce minister Kamal Nath, later approved by the Cabinet in 2011. However, it seems it has not taken off the way it was expected. What has gone wrong?

Please do not ask us to rush in an unplanned manner. We are going about the project systematically. The timeline laid down by the Cabinet for development of the first phase of the seven new industrial cities is 2019. We are well on schedule. In fact, we are ahead of schedule in Gujarat and Maharashtra. These are new industrial cities of the size and scale of Singapore. They require extensive planning, detailed engineering of trunk infrastructure, environmental approvals, and land pooling procurement by the state government concerned. There is no legal framework for development of new cities in India. We had to finalise Share Holders’ Agreement and State Support Agreement and get the State Acts amended so that the city SPVs (special purpose vehicles) have the powers to levy external and internal development fee and user’s fee. All across the world, new cities have taken three decades to develop, grow and evolve. In India, we rush up with planning, engineering and execution all at the same time and make a mess of things. This is a unique opportunity for India to undertake sustainable urbanisation and use smart technology to leapfrog. We are confident of delivering on schedule in accordance with the timeline laid down by the government.

The DMIC has been portrayed as a symbol of Indo-Japanese strategic collaboration. However, the Japanese government seems no longer interested with it due to several regulatory issues...

The DMIC project is a partnership project between India and Japan, being driven at the level of prime ministers of the two countries. If Japan was not interested, why would JBIC (Japan Bank for International Cooperation) take 26 per cent equity in DMIC and the Japanese government create a $4.5-billion facility for DMIC project. In fact, based on the progress made in DMIC, the Japanese government has decided to partner India in the Chennai-Bangalore Industrial Corridor project as well. There are regulatory issues, but we have overcome them in most of the cases. There will be challenges, but we must address them and move ahead.

It seems financing of the project has got stuck with delay in release of funds from Japanese side. Is that true?

This is not true. The finance minister, in his Budget speech has said resources would never be a constraint for the DMIC project. The government has approved an outlay of Rs 18,500 crore for creation of trunk infrastructure. Lands are being provided by the state governments. The Japanese government has approved $4.5 billion for non-commercial projects through Japan International Cooperation Agency (JICA) and commercial lending through JBIC. I also feel Japanese companies should not be risk-averse and must take more risks.

The project also got marred due to several objections to acquisition of land...

State governments have used extremely innovative processes for land pooling and procurement. In Gujarat, almost 920 km  is being taken through a process of town planning, with the participation of the local community. In Shendra, Maharashtra Industrial Development Corporation has taken land through an extensive process of negotiation, rehabilitation and resettlement. In Rajasthan and Haryana, resettlement and annuity have been used. Getting land will be through a process of negotiation and deliberations with the land owners, making them an integral component of the developmental process and skilling them for manufacturing, so that they can move to new jobs rather than live on disguised unemployment in agriculture. The states have put in a lot of hard work at the grassroot level (by) interacting with the local communities. The new Land Acquisition Act has laid down a vast number of processes for social impact including clearances by several committees. These will need to be eased to make the corridor projects move faster.

Now with the impending elections, will it be given its due importance in case the present government changes and a new one comes in?

There has been complete unanimity on the imperative need for the industrial corridors across political parties. The opposition-ruled states — Gujarat and Madhya Pradesh — have been extremely pro-active. I am sure the new government in Rajasthan will drive it vigorously. Uttar Pradesh was a slow starter, but it has now gained full momentum. Irrespective of the elections, the country requires manufacturing and creation of jobs for its young population. We need job enhancement and not job-protecting measures. India needs not merely the Delhi-Mumbai Industrial Corridor, but also the Chennai-Bangalore, the Bangalore-Mumbai and the Kolkata-Ludhiana corridors. This will, however, require a lot of political and administrative will as these are complex projects cutting across states.

What is the status of the project at present? Is it true the government has decided to break it into several minor projects?

Any large programme of this nature has to be driven down into smaller projects. DMIC was broken down into seven cities. These cities were planned and then broken into non-commercial trunk infrastructure and commercial PPP (public-private partnership) projects. In the first phase, detailed engineering of trunk infrastructure is being carried out. You cannot create a new city without a backbone. You cannot bring in private parties without all clearances and approvals and without trunk infrastructure. It will become a complete real estate play. This is a long-term play.

1,000 hectares in 60 days: GIDC creates a record of sorts

In one of the fastest land acquisitions ever conducted, the state government acquired 1,000 hectares in Khoraj village near Sanand in a record 60 days. A phenomenal Rs 1,700 crore was given out as compensation to over 400 farmers for the land acquired from them, during this period. The villagers however, say that the government has acquired over 1300 hectares.

This new parcel of land has been acquired as part of the expansion of Bol industrial zone which is being developed as a "no-effluent zone" in Sanand taluka, about 40 kilometers from Ahmedabad.
"We completed the land acquisition in and around Khoraj village on Sunday. The actual process of acquiring 1000 hectares was completed within two months, which is perhaps the fastest acquisition ever in recent history," said a official from Gujarat Industrial Development Corporation (GIDC), nodal agency for development of industrial estates in the state.

At Rs 1,100 per square meter (about 10.7 square feet), Rs 1.1 crore has been paid on an average as compensation for every hectare acquired in this zone in Ahmedabad district. "The acquisition was totally with the consent of the farmers. There has been no forcible acquisition. We are paying them the best available prices as per the existing market rates," the official told The Indian Express.
"Most of the compensation has gone directly to the farmers, unlike previous instances where a number of middlemen and land sharks have also benefitted," the official added.

This acquisition is for expanding the industrial zone in Sanand where firms, mostly from the manufacturing and automobile sector — including Tata Nano and Ford Motors — have been setting up their base. In 2012, GIDC had hiked the land prices in Sanand GIDC by 20% to Rs 3,225 per square meter for industries.

In the last couple of years alone, GIDC has given over Rs 3,500 crore as compensation to farmers for the 8,200 hectares of land in industrial zones of Dahej (Bharuch), Mandal-Becharaji (Ahmedabad-Mehsana) and Sanand (Ahmedabad). The average price paid to the farmers is about Rs 500-600 per square meter or Rs 50-60 lakh for one hectare. This land acquisition in the last two years has helped swell GIDC's land bank to 37,000 hectares.

Ring road project may face fresh hurdles

JAIPUR: The ambitious ring road project proposed during previous Vasundhara Raje government may land in fresh trouble once the Land Acquisition and Rehabilitation and Resettlement Bill, 2013 that comes into effect from January 1.

After joining the office, principal secretary, UDH, DB Gupta indicated that the ring road project will be taken as a priority. However, the farmers are waiting for the new law to be enforced that will guide all land acquisitions by central or state governments, bringing stricter norms and increasing landowner's compensation significantly.

With few days left, the farmers are also delighted who were claiming the state government is acquiring extra land for the ring road project.

Ring Road Sangharsh Samiti president Badri Prasad Sharma, said: "If the new state government wants to see progress in the project, they have to provide compensation as per the new bill, else farmers will continue to protest. Farmers have always shown consent for constructing the transport corridor. "

Meanwhile, sources in the department said that since Lok Shabha elections are approaching, the state government will not take a tough stand to take possession of acquired land.

According to the new (LARR) Bill, it is mentioned that if the farmers have not given possession of their acquired land after the Bill is enacted, the state government will have to pay the compensation according to the new LARR, 2011 Act.

"The government has taken possession of the acquired land and even the compensation has not been provided to the farmers. We have every right to fight for new compensation," said Chhotu Ram Sharma, whose land has been acquired by the JDA for truck terminal project.

In LARR Bill 2011, it is mentioned under Clause 26 that for compensation for land acquisition in rural areas, the state government has to give four times the market value for land acquired and for urban areas it is twice the market value. Similarly, the compensation for house structures and tubewells will be double that of the BSR rates.

The JDA has already acquired land for construction of the 47-km-long ring road (phase I and II) to connect Ajmer, Tonk and Agra.

The project consists of a six-lane access control expressway, a three-lane service road and an investors' development corridor. However, as farmers are protesting over taking possession of the acquired land, it remains a challenge for the authority to start work in recent past.

The JDA had planned to construct a road on 90 metre transport corridor and acquired 135 metres on either side to develop it commercially. The idea has, however, not gone down well with the farmers. Under the banner of the samiti, they are demanding compensation at market price for 90 metre and return of excess land.

Important News : Linking India’s financial centre with its IT hub

The Bengaluru-Mumbai Economic Corridor, as an anchor of the U.K.-India partnership, is set to change the economic landscape of the region it passes through

The corridor will start from Bangalore, passing through Tumkur, Chitradurga, Hubli, Dharwad and Belgaum in Karnataka), Kolhapur, Sangli, Satara, Karad and Pune and end in Mumbai (in Maharashtra). 

If there is a developing centrepiece of the U.K.-India economic engagement, which the coalition government of David Cameron has been active in promoting, it is perhaps the agreement on the joint development of the Bengaluru-Mumbai Economic Corridor. 

The decision to cooperate in developing the projected 1,000-km corridor that will link the two cities — with provision for creating manufacturing hubs along the route, developing the towns and their hinterland, and creating both investment and job opportunities along and around its route — was part of the joint memorandum that was signed between the two countries when Mr. Cameron visited India in February this year. 

The tender for the feasibility report for the project was issued this month, with a December 26 deadline for submissions. Officials from the Indian High Commission involved in the negotiations believe that progress has been remarkably fast for a project of this size and scope — a sign of the importance that the Indian government attaches to the project, as well as of British investment interest in the project. 

An “exciting flagship for wider collaboration on infrastructure” is how Barry Lowen, Director, U.K. Trade Investment (India), which leads on the U.K. side, described the project to The Hindu. “The U.K. has expertise on innovative ways to raise funding and promote green technologies in promoting infrastructure,” he said. 

The 95-page tender for submitting the project’s feasibility study lays out the scope of the project. The funding for the study is to be underwritten by India, and is itself expected to run into millions of Great British Pounds. 

The vision for the BMEC, as set out in the terms of reference of the feasibility study is of a “global exemplar both for commercially viable sustainable development and for attracting investments into manufacturing and clean infrastructure (potable water, clean energy etc).” 

To achieve “comprehensive, accelerated and sustainable economic development with green technology and regional industrial and urban agglomeration, diffusing the regional population along the length of the corridor”, the BMEC will boost “regional industry agglomeration... attracting companies in the value chain of existing companies to the corridor, attracting particular industries where the corridor has geographical advantages or has advanced infrastructure for such industries.”

The project looks to create advantages for industrial development along the corridor, creating linkages that will provide quick access to production units in a way that will reduce transportation time, costs of logistics and inventory. 

The corridor will start from Bangalore, passing through Tumkur, Chitradurga, Hubli, Dharwad and Belgaum in Karnataka), Kolhapur, Sangli, Satara, Karad and Pune and end in Mumbai (in Maharashtra). 

“It represents a fantastic opportunity to develop the engagement between the two countries,” said Amarjit Singh, Associate Solicitor in Dutton Gregory LLP and Head of India Business Group in the UK, who also accompanied Mr. Cameron on his visit to India in February. 

“Significantly, the corridor will link Mumbai, the financial centre of India and Bangalore, the country's IT hub. The U.K.’s capabilities in both sectors are world-class,” he added.

The model for the corridor is the Delhi Mumbai Infrastructure Corridor that is currently under development with Japanese funding. The nodal agency on the Indian side is the Department of Industrial Promotion under the Ministry of Commerce and Industry. Once chosen, the company/consortium must meet an eight month deadline to submit a Perspective Plan for overall development of the BMEC region along with a concept report for the greenfield megacities conceived as part of it. Foreign companies can apply. 

Actual work on the project is unlikely to get off the ground before 2015, and even that is an optimistic expectation given the challenges that lie ahead.

Hurdles

The first hurdle relates to the political environment: the new government that will be elected in the 2014 Lok Sabha elections must ratify the agreement. Assuming that the new government does so and allowing for possible changes to the corridor route dictated by political or other reasons, the project must get the critical environmental clearances. Only after this can the thorny issue of land acquisition be taken up. 

It should be recalled here that Posco, the Korean steel giant cancelled its plans for a $ 5.3 billion steel mill development project near Dharwad in Karnataka primarily due to popular opposition to land acquisition for the construction of its plant. 

Secondly, if past experience is a guide, land prices along the route will explode once the plan is announced, creating dispossession on the one hand and speculation by land sharks on the other. Third, the BMEC corridor passes through relatively less industrialised areas when compared to the Delhi Mumbai Industrial corridor. Analysis of the trends in foreign direct investment indicates that DMIC States cater to 52% of total Foreign Direct Investment equity inflows in to the country. Mumbai and Delhi regions together constitute 92% of total FDI equity inflows amongst the project States. 

Even with these advantages, the DMIC, which was conceived between India and Japan in mid-2007 and projected to cost $90 billion (Rs. 4,23,000 crore), is still years from completion. 

Sources close to the project in the U.K. Foreign Office told The Hindu that one of the primary concerns on the British side relates to the multiplicity of Central and State laws that will have to be negotiated, a process they fear could cause delays. The BMEC, when it finally does see the light of day, will undoubtedly change the economic landscape of the region it passes through, a process that Britain will doubtless reap the financial rewards of. What India’s gains will be depends entirely on how the benefits and losses of this game-changing project will be shared.

Karnataka to get two more manufacturing zones

Anand Sharma, minister for commerce and industry, today said, the ministry is awaiting proposal for one more NIMZ in the state

 

The ministry of commerce and industry has approved two more National Investment and Manufacturing Zones (NIMZ) in Karnataka. The second and third NIMZs will be set up at Bidar and Gulbarga. The ministry had earlier sanctioned the first such zone in Tumkur for which land acquisition is under progress.

Anand Sharma, minister for commerce and industry, today said, the ministry is awaiting proposal for one more NIMZ in the state. He reviewed the progress of various proposals of the Karnataka government along with chief minister Siddaramaiah and government officials, here today.

"We have reviewed the progress of the National Investment and Manufacturing Zones (NIMZ) in the state of Karnataka. The new government, headed by Siddaramaiah, had proposed to set up three more NIMZs in Karnataka and had sent a proposal for two and we have approved their proposal," Sharma told reporters.

He said, each of these NIMZ would require at least 5,000 acres of land and the government of India would provide assistance for creating the infrastructure. "NIMZ is one of the biggest policy rollouts of UPA government with a view to increase the share of manufacturing from 16 per cent to 25 per cent of the GDP. We have approved 14 NIMZs so far of which eight will come up along the Delhi Mumbai Industrial Corridor," he said.

These NIMZs will be developed as standalone integrated industrial townships. The land will be the equity of state governments and government of India will provide infrastructure, he said.

Sharma said, the government has also agreed to provide the status of NIMZ to the proposed Information Technology Investment Region (ITIR) near the international airport in Bangalore. All the incentives being provided to units in the NIMZ will be extended to ITIR, he said.

The minister also reviewed the progress of two industrial corridors passing through Karnataka. The first one is the Bangalore-Chennai Industrial Corridor, which will be extended to Chitradurga. "We have accepted the proposal to extend it up to Chitradurga. The government of Japan which is partnering in this project has also agreed. The master plan is ready and the second phase of the feasibility report is being done," he said.

The second industrial corridor is the 1,000-km long Bangalore-Mumbai Industrial Corridor, for which the United Kingdom government will partner. This is expected to attract $25 billion in investments and create employment for 2.5 million people. The feasibility study has been commissioned for the project, he said.

"There will be a joint steering committee between the UK and government of India which will be constituted soon. Both, the government of UK and government of India will come out with innovative financing for the project," he said.

The minister also reviewed many other proposals of the Karnataka government such as setting up of a convention centre under the ASIDE scheme. The government of India will give Rs 20 crore assistance for the project, he said.

The government has also approved the upgrade of the NID centre for R&D into a full-fledged educational campus with more post-graduate and graduate courses under the 12th Plan period.

Agriculture Produce Export and Development Authority will set up more cold storages and pack houses at the Kempegowda International Airport, Bengaluru, for the export of perishable commodities.

The commerce ministry has also approved a proposal for setting up a Chilli Park in Haveri and a Pepper Park jointly Spices Board, for which the location is yet to be finalised.

Dangerous trend : India a major destination for global land sharks

Dec 22, 2013 New Delhi

Following Prime Minister Manmohan Singh invitation to China to set up special economic zones and industrial parks in India, a high-level official delegation from Haryana organised a seminar at the 5th China Overseas Investment Fair held in Beijing in early December, offering land, power and other necessary infrastructure for setting up industrial parks.

While the prime minister is expecting Chinese foreign direct investment to boost manufacturing output, already sluggish because of surging cheaper imports from China, Haryana is going all out to woo Chinese companies to buy farmland. It has already taken around some potential Chinese investors and shown them sites extending to as much as 6,000 acres in Gohana. Not only Haryana, Chinese investors have also visited Uttar Pradesh, Gujarat, Maharashtra and Tamil Nadu looking for probable sites.

Haryana already has signed an agreement with the Japanese major Mitsui to set up an industrial park in the national capital region. Haryana is no exception. Foreign companies from Britain, US, Austria and Thailand have concluded 36 deals to buy agricultural land in India in the states of Gujarat, Orissa, West Bengal and Andhra Pradesh. Seven of these deals have already been completed allowing 13,105 hectares to be acquired. This much land acquisition is only for seven deals. Imagine the extent of productive and fertile land that needs to be acquired for all the 36 deals in the pipeline.

These figures are based on an excellent detailed insight provided by the website, Land Matrix. Interestingly, the Chinese investors are being offered land for ‘purchase’ and they will have the right to re-sell the land.

With more and more Chinese investments pouring in, it is time to also revisit strategic ties with China. After all, with lakhs of soldiers deployed in harsh terrain to guard the 3,380 km long Line of Control with China, of which Arunachal Pradesh alone has a common border extending to 1,463 km, the thrust is to protect every inch of land against Chinese intrusion. This policy of protecting national borders certainly needs a review considering that the Chinese are being allowed to purchase land within the country. But will Beijing ever allow Indian companies to buy such huge tracts of farmland in China?

Nevertheless, coming back to the contentious issue of farmland grab, I remember some years ago, the deputy chairman of the Planning Commission, Montek Singh Ahluwalia, had on a visit to Oman, invited Omani firms to farm in India to produce crops that can be exported. At a time when food prices have hit the roof and any measure to limit domestic production should raise concerns considering the growing food requirement for feeding the nation in the years to come, the public policy priorities  seem out of tune.

So far you had read that Indian companies were buying land in Africa, Asia and South America. Of the 848 land grab deals concluded globally since 2008, 80 involve Indian companies that have invested in 65 deals to grow foodgrains, sugarcane, oilseeds, tea and flowers. And as a news report computed, India has already bought land abroad nine times the size of Delhi.

While Indian companies are buying land abroad, foreign companies are buying land in India. That India has now turned a major destination for global land sharks has to be viewed with concern.

At this rate the day is not far off when increasingly more and more people will become landless in their own country. The US National Academy of Science calls it ‘a new form of colonialism’ while mainline economists term it as a model of economic growth. However, the fact remains that land grab has become a major investment activity over the past few years. This is frightening as it has grave human rights implications, and will impact global food security to say the least. It calls for a national debate.

Devinder Sharma is a food policy analyst

Following Prime Minister Manmohan Singh invitation to China to set up special economic zones and industrial parks in India, a high-level official delegation from Haryana organised a seminar at the 5th China Overseas Investment Fair held in Beijing in early December, offering land, power and other

necessary infrastructure for setting up industrial parks. While the prime minister is expecting Chinese foreign direct investment to boost manufacturing output, already sluggish because of surging cheaper imports from China, Haryana is going all out to woo Chinese companies to buy farmland. It has already taken around some potential Chinese investors and shown them sites extending to as much as 6,000 acres in Gohana. Not only Haryana, Chinese investors have also visited Uttar Pradesh, Gujarat, Maharashtra and Tamil Nadu looking for probable sites.
Haryana already has signed an agreement with the Japanese major Mitsui to set up an industrial park in the national capital region. Haryana is no exception. Foreign companies from Britain, US, Austria and Thailand have concluded 36 deals to buy agricultural land in India in the states of Gujarat, Orissa, West Bengal and Andhra Pradesh. Seven of these deals have already been completed allowing 13,105 hectares to be acquired. This much land acquisition is only for seven deals. Imagine the extent of productive and fertile land that needs to be acquired for all the 36 deals in the pipeline.
These figures are based on an excellent detailed insight provided by the website, Land Matrix. Interestingly, the Chinese investors are being offered land for ‘purchase’ and they will have the right to re-sell the land.
With more and more Chinese investments pouring in, it is time to also revisit strategic ties with China. After all, with lakhs of soldiers deployed in harsh terrain to guard the 3,380 km long Line of Control with China, of which Arunachal Pradesh alone has a common border extending to 1,463 km, the thrust is to protect every inch of land against Chinese intrusion. This policy of protecting national borders certainly needs a review considering that the Chinese are being allowed to purchase land within the country. But will Beijing ever allow Indian companies to buy such huge tracts of farmland in China?
Nevertheless, coming back to the contentious issue of farmland grab, I remember some years ago, the deputy chairman of the Planning Commission, Montek Singh Ahluwalia, had on a visit to Oman, invited Omani firms to farm in India to produce crops that can be exported. At a time when food prices have hit the roof and any measure to limit domestic production should raise concerns considering the growing food requirement for feeding the nation in the years to come, the public policy priorities  seem out of tune.
So far you had read that Indian companies were buying land in Africa, Asia and South America. Of the 848 land grab deals concluded globally since 2008, 80 involve Indian companies that have invested in 65 deals to grow foodgrains, sugarcane, oilseeds, tea and flowers. And as a news report computed, India has already bought land abroad nine times the size of Delhi.
While Indian companies are buying land abroad, foreign companies are buying land in India. That India has now turned a major destination for global land sharks has to be viewed with concern.
At this rate the day is not far off when increasingly more and more people will become landless in their own country. The US National Academy of Science calls it ‘a new form of colonialism’ while mainline economists term it as a model of economic growth. However, the fact remains that land grab has become a major investment activity over the past few years. This is frightening as it has grave human rights implications, and will impact global food security to say the least. It calls for a national debate. 
Devinder Sharma is a food policy analyst - See more at: http://www.hindustantimes.com/comment/analysis/dangerous-trend-india-a-major-destination-for-global-land-sharks/article1-1165488.aspx#sthash.vE8FTnGz.dpuf

Navi Mumbai airport one step closer to be a reality

Dec 20, 2013, 04.00AM IST

NEW DELHI: The long-awaited Navi Mumbai airport project is finally taking shape. The request for qualification document for the project will be taken up for approval by the steering committee of the civil aviation ministry on Friday, a person with direct knowledge of the matter told ET.

"The initial project cost as per the RFQ has been estimated to be Rs9,990 crore. This is for developing the airport with a 10 million passengers per annum capacity," said a civil aviation ministry official. "However, the project cost may escalate depending on the plans of the developer."

The project which requires 2,268 acres was envisaged 27 years ago. The airport project has been plagued by land acquisition delays. In 2011, the project cost was estimated to be nearly Rs15,000 crore.

Of the total land area, nearly 1,100 acre has been kept for aeronautical use while the rest has been reserved for commercial development. The airport will be developed in a public-private partnership project, in which 74 per cent equity will be held by an yet-tobe-found private operator, 13 per cent by Airports Authority of India and 13 per cent by the state government through its arm Cidco (City and Industrial Development Corporation).

Mumbai's Chhattrapati Shivaji International airport operator GVK is expected to get the right of first refusal. Navi Mumbai airport's land acquisition issues were cleared last month after the Maharashtra chief minister Prithviraj Chavan approved the allotment of 22.5 per cent developed land to persons affected by the project. The PAPs will also get 100 shares each in the project.

RFQ is a pre-bid process of the government which narrows down the interested bidders according to various criteria. After, the bidders have been identified, a model concession agreement will be drafted which will finally invite bidders. The first phase of the project is targeted to be completed by December 2017.

Last month, V Radha, joint MD of Cidco had told the media that all major governmental clearances are in place for the project.

"Approvals from the civil aviation ministry are in place, the environment & coastal zone regulation clearances from the ministry of environment and forests are in place, defence clearance from the ministry of defence is also with us. Clearance for removal of 98 hectares of mangroves was given by the Bombay High Court on October 29. Only stage II of forest clearance is required from the environment ministry which will come once the relief and rehabilitation is finalised," she told media persons in November after a meeting with Chavan.

Acquisition talks with Dindori farmers inconclusive

Dec 14, 2013, 02.53AM IST

NASHIK: The district collector's negotiations with the farmers from Dindori for the acquisition of 361 hectares of land at Talegaon and Akrale villages in Dindori tehsil remained inconclusive on Friday as very few farmers participated in the talks. District collector Vilas Patil has again called a meeting of farmers on Saturday when the land acquisition rates are likely to be announced.
As only about 10% of the total farmers were present for the negotiations, the collector has urged the rest of the farmers to remain present for the meeting around 2pm on Saturday at the district collectorate.

Earlier, the farmers had sought a rate of Rs 60 lakh per acre for the acquisition of the land, but the collector said he will announce the rates only after holding talks with all the farmers.
"We have already held talks with the farmers from Yeola, Gonde and Sayane in the district and we have received positive response. The rate of Rs 60 lakh per acre is very high, but proper rates will be announced for acquiring land for industry at Dindori. We will announce the rates once we interact with all the concerned farmers," Patil said.
"Besides the monetary compensation, the project-affected people ( PAP) or farmers will also get 15% for developing their total farmland. The land under 15% quota will be given if the project-affected people come together and ask MIDC for it. They can sign memorandum of understanding (MoU) with an entrepreneur and provide give their lands on lease for housing society purpose," Patil added.
The MIDC has earmarked around 5,000 hectares of land at various locations across the district for the industries, which are in different stages of land acquisition. With an aim to speed up the land acquisition process, the district collector has started holding negotiations with the farmers from last week.
The collector had held negotiations with the farmers for land acquisition at Gonde, Yeola and Sayane in the district last week. The MIDC has marked 128 hectares of land at Gonde village near Igatpuri and 494 hectares at Sayane near Malegaon. Moreover, 109 hectares had been earmarked at Yeola for a proposed textile park.