The Hindu Business Line : Gujarat may cancel allotment of land to Satyam’s IT SEZ

Gandhinagar, Jan. 9 With Mr B. Ramalinga Raju’s admission of account-fudging to the tune of Rs 7,000-plus crore over the last few years and uncertainties the controversy has kicked off, the GujaratGovernment is likely to cancel allotment of the land to Satyam Computer Service Ltd for setting up a Special Economic Zone (SEZ), dedicated to the Information Technology (IT) and Information Technology-enabled Services (ITeS) sector, in the State capital.

“Satyam has certain problems. We have not had any communication from them in recent past. Although it is too early to say, we would watch if they fulfil the conditions before we take a decision to cancel the allotment. We have allotted them land on payment of the price,” Mr Raj Kumar, Secretary (Science and Technology), Gujarat Government, told Business Line here.

Satyam had been allotted about 26 acres of land last year against payment of Rs 11.5 crore for developing the SEZ, on condition that the company would make investments each year, start construction and create jobs annually. Failure to fulfil these time-bound terms and conditions would lead to cancellation of land allotment under the new tenure land policy envisaging that no company is given full possession of land.

The company had signed an agreement with the State Government in December 2006, just before the Vibrant Gujarat Global Investors’ Summit-2007 (VGGIS-2007) for the setting up of IT-based SEZ and offshore development centre (ODC). Satyam Computers was expected to provide customised IT solutions and develop an ODC with an investment of Rs 60 crore. It was expected to create 3,000 jobs a year over a period of five years. Satyam was also to set up a consultancy and designing centre in this SEZ.

Mr Ramalinga Raju, as the then Chairman of Satyam and Nasscom, was invited by the Chief Minister, Mr Narendra Modi, as the Guest of Honour at the IT Summit held in December 2006, ahead of VGGIS-2007. Altogether 21 Memoranda of Understanding (MoUs), promising investments to the tune of Rs 14,811 crore and creating job potential for about 3.30 lakh people, had been signed in this Summit.

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