Infrastructure major, Hindustan Construction Company (HCC) and two other private firms have agreed to accept the Gujarat government’s offer to buy large tracts of land within the Dholera Special Investment Region (SIR), located at a distance of 140 kilometres from Ahmedabad, in the Gulf of Khambat area.
The two other companies are Greater Dholera Infracon (an arm of Singapore based USEL Group) and Hotmail founder Sabeer Bhatia’s Nano Works Developer Gujarat.
This sale, involving about 2,736 hectares of government land, is perhaps the biggest bulk deal to happen in Gujarat, in the last 10 years.
The cumulative cost of the land was estimated to be Rs 927 crore.
The companies are purchasing land in two phases.
HCC is buying 766 hectares for Rs 293 crore, Greater Dholera Infracon, 1,208 hectares for Rs 473 crore and Nano Works Developer is purchasing 402 hectares for Rs 160 crore.
The state government had been trying to hard-sell the Dholera Special Investment Region to corporates over the last few years.
In October last year the state government had made an offer to three private companies to buy a mammoth 2,400 hectares of government land in the notified SIR.
The Dholera Special Investment Region development Authority (DSIRDA) has issued offer letters to three companies on 12th October 2011.
“All the three companies have agreed to purchase land at offered prices. At present government and company are doing the land survey and measurement before the final possession process. Once this is over the companies are expected to pay the sale price,” said KD Chandnani, CEO of DSIRDA.
The state government has quoted Rs 400 per square metre.
This is higher than the prevalent average minimum rate of land fixed by the government, which is Rs 50-150 in the area.
This is however, lower than the prevalent market prices of Rs 750-1,000 per square metre, which is the average price of private land.