Aiada to pay market rate for 2,200 acre expansion plan

Jamshedpur | Updated: Apr 30 2007, 05:30am hrs
Facing space crunch, the Adityapur Industrial Area Development Authority (Aiada), Jharkhand's numero uno industrial area, is going ahead with its intention of acquiring around 2,200 acre of private land near the Sitarampur dam at the Gamharia end of the existing Aiada phase-I.

Over the years, all of the 3,000 acre under Aiada phase-I has been allotted to around 500 medium and small industrial units. To satisfy its immediate needs, Aiada is already engaged in directly purchasing around 60 acre around the periphery of phase-I. So desperate is its need, that the authority is even willing to pay the market price, which currently hovers around Rs 4-5 lakh/acre.

However, Aiada which would have to put up infrastructure, including roads and a power sub-station on the that land it purchases, says it would be able to allot land to industry at comparable prices which it till recently had been doing in phase-I. It is also in the midst of a technical clash with the forest department as around 1,221 acre of the 3,000 acre on which phase-I stands is said to be forest land, which awaits central de-notification.

Although acquired in the early 1960s with all the formalities having been completed, the acquisition is yet to satisfy a 1996 Supreme Court directive, which says no forest land, irrespective of ownership or possession, could actually be claimed by anybody unless it has been officially de-notified.

Aware of the complexity and the long-drawn process involved in acquiring forest land and faced with non-availability of land for accommodating new units, Aiada has chosen to expand on the 2,200 acre of mostly private land, 2.5 km from the periphery of phase-I.

We need to have Aiada phase-II as there is no land available in phase-I. Tata Motors requires around 800 acre, 400 for their own unit and another 400 for their vendors, said Vandana Dadel, managing director, Aiada.