ISB's Mohali campus plan hits hurdle

The Indian School of Business' plans to set up a new campus at Mohali has hit a hurdle as the state government has held back 70 acres of land allotted to the institute. CNBC-TV18's Kritika Saxena reports.

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Last November, Analjit Singh, Rakesh Bharti Mittal, Sunil Kant Munjal and Atul Punj came together to invest Rs 200 crore in ISB's new campus at Mohali. Eight months later, the project has still not taken-off. The Government of Punjab had allocated 70 acres of land for a 99-year lease for a fee of Rs 1 crore annually. This was to be handed over in March 2009.

But CNBC-TV18 learns that the state government has now put the land acquisition on hold. The reason behind the move is that the project falls under the Department of Higher Education but a part of the 70 acres is under another department.

Rammohan Rao, Dean Emeritus, ISB, said, "There are some issues about the land, but I think the government will be able to sort it out soon. We are hoping that in the next two months they will be able to sort it out and land will be handed to us."  

The Punjab Government refused to comment. But ISB plans have suffered a delay. 

Rao said, "The government says that you start from some temporary premises and then worry about the land and building and so on. But our philosophy has been that let us get the infrastructure than otherwise starting in some temporary accommodation."

ISB wants to start four new courses and has plans for foreign collaborations. But till the government clears the land, the ambitions may not see the light of day.

If all goes well, ISB is hoping to complete its campus by early 2012 tentatively. And if that happens, aspiring students can await its all-new courses the following year.