With space in Sector V hitting saturation point and the rate war in Rajarhat raging between custodians Hidco and the information technology (IT) department, the state government has decided to fast-track the development of 630 acres between Rajarhat and the airport.

Having already identified the Jagadishpur land for the next phase of IT development, the ministry plans to issue the expression of interest in February, instead of waiting for May or June, as originally planned.

The bidding process will follow soon after, in phases. Once the evaluation of bids is over and the private partner identified, the land development will start in earnest. The entire 630 acres, along with the basic social infrastructure, should be ready by 2007-08, according to IT ministry sources.

?The ministry plans to develop the land and sell it at far more competitive rates than Rajarhat. The state cannot afford a slowdown in the sector, especially when IT is the largest growth engine,? said an official.

Hidco has steadfastly refused to lower the price of land from what Azim Premji had referred to as a ?prohibitive? Rs 2.16 crore per acre, forcing the IT ministry to acquire the Jagadishpur land on a public-private partnership model.

The Jagadishpur land rate would be on a par with Pune, Bangalore or Gurgaon, confirmed sources, thus pegging it in the Rs 45 lakh to Rs 60 lakh per acre bracket.

?Land has been an area of concern. Vision 2010 states that jobs in the sector should cross over four lakh by 2010,? pointed out G.D. Gautama, principal secretary, ministry of information technology.

?We need to acquire more land to house such a large number of professionals. We have to move fast, keeping in mind that the state has been a late starter compared with Karnataka and Andhra Pradesh. Perception about the state has changed. However, we must remain aware of industry demands and requirements to facilitate investments in the state,? he added.

The Buddhadeb Bhattacharjee government also plans to ensure that Jagadishpur is developed in a ?much more structured manner?, compared to Sector V. From hospitals, multiplexes and schools to software technology parks, the area will have it all.

?This is specifically for the IT and ITES industry. We plan to develop the area as a township, which will have all basic infrastructure, such as water resources, sewage and lighting, as well as social infrastructure,? said Gautama.

Industry insiders too, have welcomed the move, with Nazeeb Arif, secretary-general, Indian Chamber of Commerce, stating: ?Land price in Rajarhat is on the higher side? The decision by the IT ministry to acquire land on its own sends out a very positive message to potential investors.?