Citing “astronomical” land prices as major obstruction in the state’s industrial growth, a Unido report has said that Punjab needs to develop a comprehensive and transparent land development policy.
The Punjab Industrial Review — a study prepared by Unido consultant Isher Judge Ahluwalia, has also suggested resuming unused land and allot village land (Shamlat) for the purpose of industrial development.
“The government must examine the legal feasibility of withdrawing the land which has been previously allotted but not utilised by the industry,” the report said.
The study has observed that land prices, particularly, along the Grand Truck road in Amritsar, Jalandhar and Ludhiana has become too costly to be viable for the industrial undertakings.
“Land prices have shot up so much that they will dent the prospective competitiveness of any industrial project in the state,” it said.
It has also proposed that the development charges should not be so high that the viability of the industry is compromised upon.
The matter assumes significance as land prices in Punjab have more than doubled in a span of two years, particularly in Mohali, Ludhiana, Amritsar and Jalandhar, according to the Punjab Property and Colonisers Association.
Moreover, realty firm DLF has not been able to develop its SEZ project in Amritsar because of high prices, which is an example of projects that are lying in the pipeline due to spiralling land prices in the state, industry experts say.
Recently, a chunk of land in Ludhiana was auctioned at Rs 1.31 lakh per square yard, which is one of highest bids received by the state urban development body.
Another indication of high land prices could be gauged from the fact that the Punjab government paid Rs 1.50 crore per acre to farmers for acquiring land for the international airport project in Mohali.
Punjab government had roped in Unido for conducting a report on the state’s industrial sector, which would become the base for drafting a new industrial policy.
Following the submission of the report on Punjab Industrial review by a three-member team led by Unido consultant Isher Judge Ahluwalia, the state had formed a core group to evolve a consensus on what should be the industrial policy that is likely to come into force from January 1, 2009.
