Uttarakhand Chief Minister R P Nishank today said he was in favour of proper utilisation of 94 acres of vacant land leased out to auto giant Hero Honda for its Haridwar plant even as the government gave more time to the company to deposit the land premium.

“We want our money back from Hero Honda for which instructions have already been given as we want proper utilisation of the vacant land at its Haridwar plant,” Nishank told reporters here.

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The auto giant last week held talks with top state government officials over the issue which remains inconclusive.

However, an official of Sidcul told Business Standard that the company had been given 15 days more time to deposit the land premium of Rs 50 crore.

The last deadline for depositing the amount expired yesterday. Sidcul, the state government’s nodal agency for industrial development, had allotted 265 acres to Hero Honda for setting up a manufacturing facility at Haridwar in 2006.

According to Sidcul’s latest notice, the group set up its facility at only 119-120 acres and kept around 50 acres to its vendors, the land premium for which has been paid to the Sidcul. But for the rest of the 94 acres of unused land, Hero Honda is still to pay the land premium of Rs 50 crore at the allotment rate of Rs 1,000 per sq mt.

Differing with Sidcul’s contention, Hero Honda said that according the company’s estimate, the industrial area, leaving roads etc, would be 54 acres, for which it was ready to pay the premium subject to resolution of these issues with Sidcul.

“We want to resolve all these issues at the earliest as we believe mega projects such as ours will certainly create wealth and economic value for the people of the state,” a Hero Honda spokesman said.

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