Bhattacharjee and Premji: Who’ll make the call?

Calcutta, Sept. 13: Wipro’s growth in Calcutta ? something key to the state’s IT status ? now hinges on the Buddhadeb Bhattacharjee-Azim Premji hotline.

With price negotiations between the Bangalore-based software company and Housing Infrastructure Development Corporation (Hidco) falling short of a breakthrough, the chief minister is now in direct talks with the Wipro chairman to salvage the company’s expansion plans in Bengal.

“There are some issues with regard to price of land in Rajarhat. They are now being discussed between Premji and our chief minister,” IT minister Manab Mukherjee told The Telegraph.

Earlier this year, Premji had tabled his demand before Bhattacharjee ? a plot to set up an integrated campus.

The government offered 40 acres in Rajarhat. Hidco, which owns land, issued an allotment letter to the company in May.

But transfer of land in favour of Wipro ? which is fast ramping up manpower in its software and business process outsourcing (BPO) businesses and has taken the headcount to around 1,800 ? hit a roadblock.

Wipro communicated to the government that the project was not viable with such a high ? Rs 2.16 crore per acre ? land acquisition cost. With Premji’s team pointing out that comparable land in other cities was offered to them for Rs 40 lakh-60 lakh an acre, the price issue has proved the hurdle, forcing the chief minister to intervene.

“The company is indeed committed to Calcutta and we hope that the government will resolve the land issue soon. We are expecting a favourable deal for both,” a Wipro spokesperson said from Bangalore. However, he declined comment on how long Wipro would wait for the pricing problem to be resolved.

While Wipro awaits a favourable decision from the government, the price disparity ? which ITC Infotech has also highlighted in a letter to Mukherjee ? is constraining the state’s IT initiatives.

A Writers’ Buildings source said Wipro officials came to Calcutta and held meetings with the Hidco brass to arrive at a consensus price for the Rajarhat plot. “But the discussions yielded nothing and the issue is yet to be settled,” he said, highlighting the delay in the decision-making.

“The chief minister is aware of it and is looking into the issue,” said Mukherjee, who recently announced his department’s plans to acquire 500 acres between Rajarhat and airport for an IT hub.

Hidco is still expecting Wipro to cough up the premium for the Rajarhat plot. R.K. Tripathi, its managing director, said the agency has already issued the allotment letters but is yet to hear from the company. “They still have enough time to get back,” Tripathi said.