Poll drubbing cloud on land bank project

The Left's reverses in the Lok Sabha polls which has already forced a withdrawal of a plan to acquire 120 acres in Kharagpur has now cast doubts on the West Bengal Industrial Development Corporation's (WBIDC) intent to mobilise Rs 500 crore for creating a land bank to provide plots on demand to companies.
Apart from the government's obvious hesitation to avoid ruffling any feathers before the 2011 Assembly elections through an aggressive land acquisition drive, the transfer of charge of the Land Use Board to land and land reforms minister Abdur Rezzak Mollah has raised questions on the role to be played by WBIDC on land-related issues in a post May 16 scenario.
Incidentally, the board which prior to the elections was headed by industries minister Nirupam Sen is responsible for chalking out areas for industries and agriculture, and also preparing a land map for the state. More significantly, Mollah has never hidden his scepticism of the land acquisition policies being pursued by his own government.
Sources said the fund mop-up exercise, in any case, has not been an easy ride thus far because WBIDC's own balance sheet is not big enough to justify such a large exposure by lending institutions, including banks.
The fact that the government does not have too many cash-positive' organisations at its disposal, and is committed to implement the Pay Commission recommendations has also weakened its position to secure attractive borrowing terms.
Speaking to TOI, state commerce and industries secretary Sabyasachi Sen, though, declined to get into specifics saying that the picture on the WBIDC land bank initiative would become clear soon. "The WBIDC MD is currently on leave. Let him come back first," Sen said.
The secretary refused to specify the quantum of funds WBIDC has raised thus far. While Nirupam Sen is also WBIDC chairman, Sabyasachi Sen has the added responsibility of being vice-chairman of the government's industry promotion arm.
It must be noted, though, that although the state has been talking of a land bank for quite some time, it has never clarified the quantum of land it wants to keep ready for handing over to companies. Assuming a price of Rs 20-25 lakh per acre (inclusive of compensation to be paid to landlosers), the state can only have 2000-2500 acres in the land bank.
On a different note, however, a delay in putting in place a land bank may not hurt the state too much now as the global economic downturn has forced most companies to go slow on expansion plans.