Wednesday, January 31, 2007

Reliance bets on local people to get SEZ land


MAYUR SHEKHAR JHA & RAJAT GUHA

TIMES NEWS NETWORK[ SATURDAY, JANUARY 27, 2007 01:46:38 AM]

GURGAON: Meet Gurubhai in real life. With land acquisition for
industrial projects becoming increasingly controversial, Mukesh Ambani’s
Reliance Industries (RIL) is banking on ‘emotional connect’ with the
Indian villages and villagers. While acquiring land for the 25,000-acre
Haryana SEZ project in and around Jhajjar, RIL is using local gram
pradhans (village heads) as agents, cashing in on their local clout to
persuade farmers in their villages to sell land to India’s biggest
corporate house.

Heads of Badli, Jahangirpur, Pelpa, Dadritoe and Sardhi villages in
Jhajjar have already helped the corporate behemoth acquire close to
8,500 acres in six-odd months. Of this, almost 2,000 acres is in
contiguity. RIL needs 2,500 acres of contiguous land to get formal
clearances for SEZ.

“Acquiring so much land would not be possible without an active
involvement of the local village machineries. Land is an extremely
sensitive issue and it’s not just money that incentivises a farmer to
sell his land. He needs to be convinced. Perhaps this is where Reliance
is banking on the legacy of Dhirubhai Ambani to mobilise the support of
village heads, who in turn are convincing farmers and landlords in their
respective constituencies,” a source in the landbanking business said.
An ordinary real estate company could not have managed such smooth
sailing, he added.

According to sources in the state, RIL’s modus operandi for buying land
has led to a win-win situation for all. “Any company buying land in a
village would appoint an agent. In case of the Reliance SEZ, these
agents command a certain clout in their respective capacities. While
this makes land-buying a relatively simpler process for the company,
association with the country’s largest firm gives the villagers a sense
of empowerment,” an official in Jhajjar’s land records department said.

Perhaps this also explains why RIL has not felt the need to exercise the
option of seeking the government’s assistance for maintaining land
contiguity. “As per the deal with RIL, the state has to acquire 7,500
acres out of the total 25,000 acres to ensure contiguity. However,
involvement of influential people at the grassroots has ensured the
company does not need to bank too much on government support,” said an
official in Haryana State Industrial and Infrastructure Development
Corporation.

RIL has already bought 8,500 acres, forking out Rs 1,700 crore.
According to sources, the company is going ahead with land procurement
at the rate of 60-70 acres every day.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Reliance_bets_on_local_people_to_get_SEZ_land/articleshow/1479559.cms

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