The Hindu Business Line : Motown Chakan Part II finally gets going

Pune, July 14 After months of inordinate delays, the State Government has finally moved on the issue of land acquisition at Chakan, the country’s Motor City in the making.

A notification under Section 32/1 of the Maharashtra Industrial Development (MID) Act is due to appear in a special issue of the gazette tomorrow, clearing the last procedural hurdle for acquiring the land.

But the apathy in expediting the process, especially in the last 12 months, has not only cost the Government crores of rupees by way of lost potential investment – including perhaps Daimler-Hero joint venture’s Rs 4,400-crore commercial vehicle project – the spiralling cost of land has raised the price tag by a few hundred crores as well.

Though the land in question, dubbed Chakan 2, and measuring around 1,444 hectares was first notified in 1997, the 32/2 notification for it was issued only by May 2007. Given the normal time frame, the final 32/1 notification was expected around last August, while the land would have come into the MID Corporation’s fold by October 2007. At the prevailing average price of Rs 27-28 lakh a hectare, the deal would have cost the Government around Rs 400 crore, a source close to the development said.

A year on, land prices in the region have continued to move north, and the current average price at Chakan now in the area is upwards of Rs 40 lakh a hectare, the source said. By this reckoning, the deal size for the land in the region is likely to be over Rs 600 crore.

The industrial region of Chakan is one of the world’s fastest growing auto regions and is currently completely sold out.

Manufacturers who are in the process of setting up manufacturing facilities here include Volkswagen, Mercedes Benz, M&M-ITEC and Bajaj Auto for its small car project in association with Renault-Nissan.

The wait-list of aspirants for a plot of land which is additionally developed is reported to be 2,500-strong.

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