MP's agro corporation to be under industries deptt, decides Cabinet
After making several attempts at privatising the controversial Babai farm (in Hoshanbad district) owned by state agency State Agro Industries Development Corporation, the state government has decided to hand over half of it to the department of industries. The industry department will invite private players to set up non-polluting industries.
“The state Cabinet has decided to hand it over to the department of industries; it will develop the farm for non-polluting industries,” Narottam Mishra, a Cabinet minister and government spokesperson said. The state on Monday decided to transfer 1,600 acres of it to department of industries.
In 1971, the state government allotted the farm sprawling on an area of 3,251 acres contiguous to the Narmada river in Babai village to the company with an aim of establishing it as a merchandised agriculture farm.
The PSU made futile attempts to put the farm on market on a number of occasions.
In its report tabled in March 2010, the Comptroller and Auditor General of India (CAG) had said, “Jhuggi dwellers and villagers have encroached over 203 acres of land of the farm which was valued at Rs 2.59 crore by National Bank for Agriculture and Rural Development (Nabard) in 2005. The company did not obtain any title in its favour or entered into formal lease agreement so far.”
Girija Shankar Sharma, Member of Legislative Assembly, told Business Standard, “The farm is very sandy and does not produce much. It has become somewhat like a white elephant. I agree with the government decision in-principle but the industry department should utilise it for the provided purpose only.”
Out of the cultivation land of 2,444 acres, a 2,022 acre with irrigation facilities was used for farming, however, the CAG had said, utilisation of irrigated land remained between 42.24 to 58.57 per cent during 2004-05 to 2008-09 Rabi season and in kharif season it came down from 67.99 per cent 34.76 per cent. The use of land was declining and percentage of utilisation was as low as 42.24 percent in Rabi and Kharif season.
The CAG had also revealed how a government company, MP Agro, which is supposed to improve state farming techniques, failed to run even tractors on the farm. “The running charge of tractors per acre increased from Rs 1,953 per acre (2005-06) to Rs 3,372 per acre (2008-09). As all the tractors were out-of-date and old, the operating cost was not economical and hence, the unit hired the tractors during 2004-07 for Rs 31.49 lakh. The unit had to incur repair/maintenance charges of Rs 31.86 lakh on six old tractors and two harvestors which were procured in 1977-89. Instead of incurring huge expenditures on repairs, the company could have procured new tractors in phased manner.”