Whatever the riders, true development in the 21st century can only be defined in terms of knowledge economy supported by modern infrastructure. Even with all its positive aspects, the agrarian economy can never be a substitute for industrial development and further transformation into information and knowledge economy.
With this perspective, it is proposed that at-least half-a-dozen new integrated Townships need to be developed immediately by the Government in Public sector.
The development is proposed to be done on Magarpatta model, so that the land holders are true beneficiaries and allegations of favouring any big houses are avoided.
Features of the proposed plan.
(1) The Township should be having an area of 600 to 1000 sq. kms., supporting a population of around 10 million.
(2) Information Technology should be the theme of the new township, so that the water requirements for industries are limited and there are no issues of industrial pollution.
(3) Dotted with big server farms and big and small software and hardware units, the new city can be truly showcased as the new SILICON VALLEY in the world.
(4) The new township will be supported by a big international airport of world class. To make the airport viable, initially it can be marketed as “The new air cargo hub”.
(5) The new township will be supported by a gas based power plant of at-least 4000 MWs. Alternatively, power can be evacuated from a port based generation facility, solely meant for the new township.
(6) The new township will be 100% urban, having all modern infrastructures and facilities that a world class city can think of and actually can be promoted to compete with destination like Shanghai.
FINANCIALs of the PROPOSED PLAN
The initial investments required for this project would be approximately US$ 500 billions. The break-up is as follows :-
(1) Land acquisition of 100000 hectares (1 sq. kms. = 100 hectares and 1000 sq.Kms. = 100000 hectares) @ Rs.1 crore per hectare as ex-gratia payment = Rs.100000 crores or roughly US$ 20 billions.
(2) Cost of new airport development US$ 20 billions.
(3) Cost of power generation for 4000 MWs = US$ 20 billions.
(4) Cost of power distribution system = US$ 20 billions.
(5) Cost of roads, infrastructure, drainage etc. = US$ 50 billions.
(6) Initial investments towards construction of buildings and commercial facilities = US$ 70 billions.
Total US$ 200 billions
(7) Cost of construction of 1 billion sq. mtrs. at F.S.I. 02.00 @ Rs.1000 per sq. ft. = US$ 200 billions approximately.
(8) Revenue estimate of the project :
(a) The cost of construction of the buildings is roughly calculated as Rs.1000/- per sq. ft. for basic construction. The selling price can be assumed as Rs.3000/- per sq. ft. At this rate, the total availability of 1 billion sq. mtrs. is likely to fetch approximately US$ 600 billions of direct revenue to the company, of which 1/3rd i.e. US$ 200 billions can be further awarded to the landholders or alternatively, 1/3rd of developed space can be given to the original land owners.
The indirect benefit of taxes and economic activities to the State will be tremendous and will not form part of this project.
Through a Notification land can be acquired, but possession of the land can be taken on actual start of work. As the land holders themselves are being made the share holders on Magarpatta model, it is expected that with the help of people’s representatives, the land holders can be suitably convinced to become part of this project.
Initially, a time span of 10 years can be fixed for this project, which may be extended further, if necessary. The above calculations are rough calculations and they can be fine tuned if the project is approved in principle. The project’s cost may also be less, if availability of Government’s lands and lands of low fertility is calculated properly. All the clearances at the State’s level should be automatic through a Notification or Ordinance and the Environmental clearance can also be expedited from the Central Government as this will be a unique project of national importance. Financial support from the Central Government also can be sought. The project size of 1000 sq. kms. can also be suitably modified, if necessary. However, care has to be taken that optimum economies of scale are achieved in the implementation of the project as this would be the key factor for its success.
K.D.Tiwary, Advocate 