West Bengal irked by DLF silence on project

The West Bengal government is now fearing that real estate major DLF might not go ahead with the Rs 33,000 crore township project at Dankuni, as the company has not shown "any interest" in executing it in the recent months.

"DLF's response has not been very encouraging in executing the project. They have given us no communication in this regard. They have not said either 'yes' or 'no'," Ashok Bhattacharya, minister for municipal affairs and urban development, West Bengal told Business Standard.

One being asked if construction work for the project will start this month, the minister said, "I don't think so."

Battered by the exit of Nano, the West Bengal government has stepped up efforts to hold back the industrialists who once promised to invest in the state.

The government has stepped up efforts for getting for the project, as instead of land procurement, the Kolkata Metropolitan Development Authority (KMDA) will now directly purchase it from farmers.

"Land procurement was something like acquisition. Now instead of that, we will go for directly purchase from the farmers," said Bhattacharya.

"For purchasing land the KMDA is now directly dealing with the farmers in the presence of district magistrate of the area. We are looking at various aspects like branding and pricing of the land at present," said sources at KMDA.

With renewed efforts to get land for the project, the government is hopeful that land could be procured in the next two-three months.

DLF had earlier paid Rs 250 crore to the government as advance for the land, which it proposed to buy from the government at Rs 56 lakh per acre, inclusive of the cost of civic amenities like sewerage.

The land procurement committee had offered Rs7 lakh an acre for fallow land, Rs12 lakh for multi-crop land, and Rs14 lakh for homesteads.

The price was unacceptable to a section of farmers and opposition parties, as the prices was much lower that that offered to DLF.