Land deals fill KMC, KMDA, Housing Board coffers

In West Bengal, over the last two years, some of the most visible struggles have centered around land.

However, for three prominent government agencies involved in land deals in and around Kolkata""the Kolkata Metropolitan Development Authority (KMDA), Kolkata Municipal Corporation (KMC) and West Bengal Housing Board (WBHB)--the last two years have been by far the best in terms of their financial health.

The three organisations signed deals worth more than Rs 18,000 crore, for over 5,250 acres of land during the period.

However, if the mother of deals-- KMDA's deal with real estate major DLF in Dankuni-- is excluded, the three organisations together sold just about 410 acre for about Rs 16,000 crore.

Till now, KMDA has received about Rs 271 crore for acquiring land for the DLF project. A "grass root level committee" comprising land owners and other stakeholders is now looking at a faster land acquisition process, according to a senior official at the KMDA.

More recently, the authority signed deals, worth more than Rs 800 crore, with real estate developers on a single day.

The WBHB alloted 222 acre of land to its eight joint venture partners for a whooping Rs 13,927 crore in the last two years. Of the 26 housing projects undertaken by the board with 8 joint sector companies, around six are beyond the ceiling limit.

One of the biggest joint venture project of the board being, a 46 acre housing project with land value of close to Rs 1,564 crore, at Chalkjoteshibrampur in Behala by Bengal Green Field Housing Development Co ltd.

With the land deals proving to be lucrative than ever, the board is now contemplating privately acquiring land for housing projects spread over a land area as big as 500 acre, given its depleting land bank.

"We are trying to to build a land bank even by private purchase of property. We can purchase up to 500 acre and develop housing projects in conjunction with one or more real estate company in places like Durgapur, Kalyani, Siliguri, Boplur and Rajarhat, " said D P Jana, vice chairman, WBHB.

Moving a step ahead of the joint venture projects, the board is also mulling the idea to develop housing projects in "sponsored sector" where its liability will be more or less limited to providing the housing boards tag to the project for acquisition of land beyond the ceiling limit.

Already some big companies like L&T have shown interest in the proposal, according to Jana. However, the proposal is yet to be passed by Gautam Deb, minister for housing and PHE, West Bengal. For KMC, the mad rush by real estate developers to obtain land on E M Bypass, has earned about Rs 629 crore, just from three land deals.

DLF Hilton, Emmar MGF and LIC were the winners in land bidding process, with LIC setting a record by paying Rs 55.24 crore per acre for a 5-acre plot on the road.

The corporation has recently invited bids for another 3.35 acre and is contemplating bidding for another 5 acre in the area in the area, according to Sahidul Islam, joint municipal commissioner, KMC.

Without doubt, the financial turnaround the three organisations have been ushered by the eagerness of real estate developers join hands with the government in acquiring land parcels, beyond the ceiling limit of 12.5 acre.

"The PPP policy of the West Bengal government has been very successful, given the cumbersome procedures of acquiring land in the state," according to Pradeep Sureka, president, confederation of real estate developers association (CREDAI), Bengal.