Bengal drafts cross-subsidy plan for IT land

The West Bengal government is going all out to woo investors and cross-subsidisation using proceeds from sale of land is the new mantra.

The model envisages selling land to some companies at concessional rates and raising resources for this by charging higher prices from other land sales.

For instance, the state government is looking to use the model for accommodating information technology sector stars like Wipro and Infosys.

Wipro is eyeing a second campus of 50 acres while Infosys wants 100 acres for its entry into Kolkata.

Both the companies want land in the new IT hub of New Town in Rajarhat, where prices have gone through the roof and are much above what these companies are paying for land in other cities. Infosys had indicated a range of Rs 5-30 lakh per acre.

The West Bengal government is trying to give them land at a concessional rate in the Rajarhat area, just outside the New Town area. Industry sources said, the cost of land in that area would be Rs 20-35 lakh per acre and that could be the price.

Similarly, the government had signed a memorandum of understanding with THDC Ltd (formerly Tata Housing Development Company) for an IT township project, part of which would be in the New Town area.

The project would be in partnership with WBIDC and would create infrastructure for IT companies.

Commerce and industry secretary Sabyasachi Sen said, the state government had a commitment of finding clients for 400 acres, which includes that of Wipro and Infosys.

THDC would create the entire infrastructure for the Info City.

THDC would find clients for the balance 200 acres and help WBIDC raise resources.

The state government had also requested HIDCO to give 50 acres in New Town at a concessional rate for since it was part of the Rajarhat Info City project.

HIDCO was set up as a government company in April 1999.

The corporation has been given wide powers to acquire and sell land, develop the entire range of infrastructure; services, construct housing and commercial premises and also maintain the New Town.