In order to contain the opposition from farmers in aggregating lands to launch a Special Economic Zone, Gurgaon based-Raheja Developers Ltd has adopted an unique method. The company gave the farmers, whose land it is acquiring, an option to own around 15240 sq ft built up area for every acre of land given to the project.

The developer has already acquired 255 acre of land in Gurgaon and got the SEZ for engineering activities notified. Chairman of the company Navin Raheja said that with the current rental rates going in the area, a farmer will earn around Rs 2 lakh to Rs 3 lakh per month per acre of land. The capital cost of the land, in the area is around Rs 1.5 crore per acre. Raheja said that lease rentals income will increase over a period of time.

However, the monthly payment against the lease rentals will start accruing only after the SEZ become functional. Raheja said that entire infrastructure in the zone will be developed in three to five years at an investment of Rs 4,500 crore.

With the present model of making farmers a party of the development, the developer has not only able to acquire the land successfully but also it is getting support from the local population for the speedy completion of the project. Raheja said that around 40% of the farmers have chosen for the lease-rental model. The company plans to increase the size of SEZ project and is in talks with land owners.

Raheja said unlike the other SEZs in the country, which are facing stiff opposition from the local population and getting delayed, his project is on time. The SEZ has also received approval for authorized operations. Raheja said a number of domestic as well as foreign companies have shown interest in opening their manufacturing units in the SEZ. In fact, this will be the first notified engineering specific SEZ in northern India.

He said the investment would be funded through a mix of debt, equity and internal accruals, he said. “We are looking at strategic investors as well, he added.” The project is expected to create job opportunities for around 50,000 people and has a potential to generate annual exports of Rs 1,000 crore.

Raheja said the expression of interest from the companies has been sought and deadline for submitting the same is September-end. “We are in talks with at least 10 firms which have shown interest in setting up facilities in our SEZ,” he said. It has also promised jobs to two person from each family of farmers whose land has been acquired, he added.

Courtesy: – TOI dtd: – 21st August 2008