Slipping realty
For quite some time the 2 IT biggies from Bangalore, Wipro and Infosys, are scouting for land in the city, which they want at rates they think proper. The plans are big. While Wipro already has 18 acres of prime plot in Salt Lake Sector V, it wants another 40-50 acre plot for its second campus in Kolkata.
Not to be left behind, and rightly so, Infosys too wants to drop that elusive anchor in the city in exchange for 100 acres of land. The trouble is this may not happen, neither for Wipro nor for Infy. Why?
When Azim Premji set his feet in the city in 2004, he got the Sector V land cheap. Kolkata was then struggling to get noticed. And indeed Wipro’s arrival heralded a new chapter for the beleaguered state.
Soon, after much pursuing, Infosys decided it was time Kolkata too deserved a campus of its in the eastern region in addition to Bhubaneswar’s. While this was going on, unknown to both the IT companies, much water flowed down the Hooghly.
Savvy realtors from far and wide started lapping up lands at unheard of prices. Thus while LIC paid Rs.55.24 crore an acre for the plot opposite Science City, Emaar-MGF and DLF respectively paid Rs.34 crore and 27 crore per acre for plots off the EM Bypass.
And now, Dhoot Developers and South City Projects bagged plots at Salt Lake for an average of Rs.37.13 crore an acre.
Now, what is the price that Wipro and Infy are willing to pay? Forget a crore, the two are reportedly not willing to pay above Rs.60-65 lakhs an acre, that too for plots in or near the city. No wonder the IT twins are not getting their share.
There is another angle to their asking for sprawling campus that I probed in my post a year back, Land to whom.
Comparing to what Tata Motors can do in terms of long-term direct and indirect employment generation and revenue to the government from their 995-acre Singur factory, I feel it is deeply illogical to give away 100 acres of land on a platter to Infosys or 53 acres to Wipro.
The reason is simple. It is more than a mere possibility that the 2 IT companies can never match even a small fraction of what Tata Motors can do to Bengal’s industrial rejuvenation in times to come.
The government will do well not to gift precious lands to IT companies without extracting the just price.
Even otherwise, as the competition catches up and the cost escalates, the Indian IT sector is looking quite vulnerable, and so it doesn’t matter if one Wipro or Infy cannot make it to the state.
Not to be left behind, and rightly so, Infosys too wants to drop that elusive anchor in the city in exchange for 100 acres of land. The trouble is this may not happen, neither for Wipro nor for Infy. Why?
When Azim Premji set his feet in the city in 2004, he got the Sector V land cheap. Kolkata was then struggling to get noticed. And indeed Wipro’s arrival heralded a new chapter for the beleaguered state.
Soon, after much pursuing, Infosys decided it was time Kolkata too deserved a campus of its in the eastern region in addition to Bhubaneswar’s. While this was going on, unknown to both the IT companies, much water flowed down the Hooghly.
Savvy realtors from far and wide started lapping up lands at unheard of prices. Thus while LIC paid Rs.55.24 crore an acre for the plot opposite Science City, Emaar-MGF and DLF respectively paid Rs.34 crore and 27 crore per acre for plots off the EM Bypass.
And now, Dhoot Developers and South City Projects bagged plots at Salt Lake for an average of Rs.37.13 crore an acre.
Now, what is the price that Wipro and Infy are willing to pay? Forget a crore, the two are reportedly not willing to pay above Rs.60-65 lakhs an acre, that too for plots in or near the city. No wonder the IT twins are not getting their share.
There is another angle to their asking for sprawling campus that I probed in my post a year back, Land to whom.
Comparing to what Tata Motors can do in terms of long-term direct and indirect employment generation and revenue to the government from their 995-acre Singur factory, I feel it is deeply illogical to give away 100 acres of land on a platter to Infosys or 53 acres to Wipro.
The reason is simple. It is more than a mere possibility that the 2 IT companies can never match even a small fraction of what Tata Motors can do to Bengal’s industrial rejuvenation in times to come.
The government will do well not to gift precious lands to IT companies without extracting the just price.
Even otherwise, as the competition catches up and the cost escalates, the Indian IT sector is looking quite vulnerable, and so it doesn’t matter if one Wipro or Infy cannot make it to the state.
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