An 81-acre industrial land parcel in southwest Delhi has remained largely unused for more than 17 years, despite being acquired as part of a plan to build new industrial and commercial hubs in the Capital.

The land at Baprola was part of a 137.63-acre parcel for which DSIIDC acquired leasehold rights from the Rural Development Department (RDD) in December 2006 for 99 years. It was initially meant for developing a Gems and Jewellery Park and a Fashion Design Hub.

According to the CAG report, tabled by Chief Minister Rekha Gupta in the Delhi Assembly on Friday, DSIIDC paid Rs 38.09 crore to the RDD in January 2007 towards the cost of the land and the first year’s ground rent.

However, an audit of records covering April 2019 to March 2023 found that only 56.21 acres had been utilised, while 81.42 acres, or around 59% of the allotted land, remained unused.

Plans changed repeatedly

The CAG attributed the prolonged delay to repeated changes in the proposed use of the land.

In 2010, the Gems and Jewellery Park and Fashion Design Hub projects were dropped after failing to attract sufficient interest from developers. DSIIDC then proposed developing a Knowledge Based Industrial (KBI) Park at the site.

A consultant’s report in March 2012 found the KBI Park financially feasible, but the proposal remained at the planning stage until 2018.

Another assessment in 2019 concluded that the project was not feasible under the market conditions prevailing at the time.

Following this, the Delhi industries minister in August 2019 decided to drop the KBI Park proposal and instead develop shop-cum-office spaces and factories at the site. That plan, too, was not implemented.

Financial express has reached out to DSIIDC for their comment on the matter. The story will be updated as and when they respond.

Electronics City proposal also pending

The Baprola site was again proposed for development in the Delhi government’s 2022-23 Budget, this time as an Electronics City.

However, the CAG said no further progress had taken place till November 2024 as the Delhi Electronic System Design, Manufacturing and Refurbishment Policy 2024-29 was still awaiting approval.

The auditor said the repeated changes in the intended use of the land and delays in finalising a viable project resulted in 81.42 acres remaining unutilised despite expenditure of Rs 29.45 crore.

Ground rent dues at Rs 15.79 crore

The CAG also flagged unpaid annual ground rent on the land.

According to the report, DSIIDC had not paid annual ground rent for the period from December 2007 to December 2024, resulting in an outstanding liability of Rs 15.79 crore.

The liability could rise further on account of interest and penalties, the auditor said.