The Mamata Banerjee government is all set to allow the West Bengal Industrial Development Corporation (WBIDC) to take control of plots leased out to different companies by the land and land reforms (L&LR) department for setting up units in an apparent attempt to make terms and conditions easier for investors.
Usually, the WBIDC leases out land to investors in Bengal. But in certain cases, the land parcels are leased out to the investors by the L&LR department, too.
A primary estimate suggests that the L&LR department has leased out land to nearly 25 investors across the state and the control of those plots is with the L&LR department.
“If the WBIDC controls the industrial plots, the investors can get some benefits. For example, if an investor wants to surrender a portion of the land leased out to it, the WBIDC can return the salami but the L&LR department cannot,” said an official.
Sources in the administration said the proposal was mooted after the JSW group had expressed its wish to return about 3,500 acres of 4,700 acres allotted to the company.
“The company has made it clear that it wishes to return about 3,500 acres as this portion of land has been lying unused since the original plan of setting up an integrated steel factory was scaled down. The JSW group urged the government to return the salami (Rs 70.9 crore) in proportion to the land returned,” said a source.
But the proposal was gathering dust as there was no such provision in the L&LR department’s rulebook.
“Recently, the government initiated a process to return the salami paid by the JSW group. But as it was found out that the L&LR department cannot return the salami, an initiative has been taken to give control of industrial plots to the WBIDC which has provisions to meet such demands,” said a bureaucrat.
The move, senior government officials said, is significant for three reasons.
First, the huge tract of land can be allotted to other industries that look for large tracts of plots at a stretch, whichare not easily available in Bengal.
Second, returning the sum of about Rs 70 crore would not be a major headache for the government but it would send a message that the government is active to help the investors when they are in trouble.
Third, sending messages like these to the investors is important when the government has renewed its efforts to draw investment for the creation of jobs in the state.
Sources in the government said the JSW group was allotted a total of 4,700 acres of land for setting up a 10-million-ton integrated steel plant but the company had scaled down its plan and decided to run a cement grinding unit there.
“So, the company has proposed to return a large part of the land. As the company is in trouble, the government wants to stand by it. So, its proposal is being considered seriously,” said a source.
Now, if the control of all industrial plots goes to the WBIDC, the role of the L&LR department will be restricted to helping the investors buy plots directly from the farmers in future since the Bengal government has a no-land-acquisition policy.
In case, any vested land, control of which will remain with the L&LR department, falls within the plan of any industrial unit, the land parcel will be first transferred to the WBIDC and then the government company will transfer the land to the investor, sources said.
