To woo IT companies, the state government has, since the late 1990s, given land in Hyderabad at throwaway costs.
Hyderabad: IT Firms that need to set up base in Hyderabad will no longer be permitted to subsidized land allotment from the government.
Companies need to purchase land at the current market rate and if there are multiple candidates for the same parcel of land, an open auction will be led by the government.
An IT company like Infosys Technologies got hundreds of acres of the plot in the city for just Rs 12 lakh per one acre.
Property in Hyderabad in any location at existing commands Rs 15 crore to Rs 25 crore per acre. As IT corporations are vying for land on the city’s borders and there is a lack of land, the TS government has decided not to offer land at subsidized charges anymore. The judgment was taken at the meeting of the Land Management Group headed by S.P. Singh Chief Secretary.
Official sources in the IT section said the new rule will come into effect in the new IT Gardens being developed by the government nearby Shamshabad international airport; spread over 250 acres, where the present market rate is in the price band of Rs 10 crore to Rs 15 crore.
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“The Chief Secretary has directed TSIIC officers to offer land to IT companies by conducting auctions. No allotments should be made at subsidized rates,” sources whispered.
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“After usual calamities in Chennai and Vizag and law and order issues in Bengaluru, many global and local IT firms prefer Hyderabad. The good climate and business environment in the city and political stability are encouraging more and more firms to set up shop here,” the source whispered.
Land was not auctioned in undivided AP
In undivided AP, there is no uniform rule to determine the price of land allotments. An IT corporation was allotted 6.32 lands in an IT park at Nanakramguda for just only Rs 60 lakh per acre on December 12, 2004, whereas a non-IT corporation was given five acres for Rs 35 lakh per acre on December 14, 2004.
The other company was given land at Nanakramguda for per acre Rs 60 lakh on February 16, 2005, and a leading IT company bought 15 acres at the rate of Rs 29 lakh per one acre on March 28, 2005. No auction or offers were called and the land was allotted solely at the discretion of the powers-that-be.