Mukesh: Smooth landing

Calcutta, Oct. 18: Bengal has allotted Reliance Industries the first tract of land for an ambitious agri-retail project spread across the state.

The country’s largest private sector company has been given 80 acres near Asansol, off National Highway 2, at Rs 12 lakh an acre. The allotment paves the way for Reliance’s Rs 2,000-crore agri-venture.

Probably because of the modest size of the initial acquisition — 80 acres — the Reliance deal has steered clear of controversy, unlike the Tata project in Singur, where the acquisition of nearly 1,000 acres has become a political issue.

Besides, the nature of the cultivation in the 80 acres — single crop — could also have helped smooth the path. Some areas earmarked for the Tatas in Singur have multiple crops — a sensitive issue with farmers.

Observers feel that the Reliance project, scattered across 100 locations, is likely to face less resistance than the Tata car plant, coming up on a contiguous area.

“We have allotted single-crop land to Reliance,” said N. S. Nigam, chief executive officer of Asansol Durgapur Development Authority (ADDA), which made the allotment.

One of the five distribution centres — the nerve-centre of the farm products retail project — planned in Bengal will come up in Asansol. Calcutta, Siliguri, Malda and Kharagpur will also house such hubs, each of which will require 100 acres.

A request for 23 more acres in Asansol has been made, Nigam said, adding that the land was being identified. That apart, the authority is in the process of allocating another 10 acres and price negotiations are under way.

The land allotment has raised hopes that an agreement between the state and Reliance for the agri-retail venture will be signed in the first week of November. Mukesh Ambani may come to Calcutta for the signing ceremony.

Once inked, the pact could speed up land deals elsewhere in Bengal, where Reliance alone will need between 1,600 and 1,800 acres.

The structure of Reliance’s retail plan will be unveiled in Hyderabad later this month.

The Asansol distribution centre will have cold storage facilities. The hub will also double as outlets for providing farm inputs like seeds, pesticides, tractors and even micro-finance.