Gujarat Govt gave land to Ford India at low price: Congress

The opposition Congress today alleged in the Gujarat Assembly that Narendra Modi government favoured the carmaker Ford India unduly by giving it land at a throw-away price in Sanand.

State Congress chief Arjun Modhvadia also sought to know if the government was willing to review the rate at which the land was alloted, but Revenue Minister Anandi Patel said it was not possible. Modhvadia's allegation, made in the question-and-answer session, led to an uproar in the house. He had asked a question on the land allotment.

Patel replied that over 186 hectares of land was sold to Ford India at Rs 1,100 per sq mt in Sanand tehsil of Ahmedabad, in the vicinity of Tata Nano plant. Modhvadia then alleged that this was "a new scam" by the government, asking why the land was given at such a low rate, when the going rate in the area was over Rs 15,000 per sq mt. He alleged that government was giving land at throwaway prices to the industry, and lining own pockets in the process.

BJP MLAs took a strong objection, causing an uproar. Patel said that a committee had fixed the price after evaluation of the project in accordance with the industrial policy of the state. The rate paid by Ford was more than the Jantri (minimum rate declared by the government) of Rs 1,000 per sq mt, she said, adding that the carmaker had paid the first instalment of Rs 25.62 crore early this month with the land transfer fee of Rs 1.11 crore and other charges.

About the proposal by Indian car major Maruti Suzuki, Patel said the government had received an application from the company in November, seeking land in Hansalpur in Gandhinagar district, and it was under consideration. She also clarified that French carmaker Peugeot had not approached the Revenue Department for land.