Ad Here  
February
March
April
May
June
July
 
 
R Sridhar steps down as CEO of Shriram Capital A professional at the helm of IRDA... Permanent secretariat for TN GIM The brown list of Venkitaramanan Fall in crude prices help in oil sector reform The Gulf aviation boom Measuring roof tops in terms of KW/MW S V Raju – a ‘good’ true liberal Making ‘my Amaravati’... Like Hinduism: many paths to reach God... He saved millions from starvation... Recognition to role of NBFCs.... Solar thermal shines… Cleaning Ganga – relocate tanneries and install electric crematoria TIAM turns a full cycle Padma Bhushan for A Ramakrishna Moily’s bold thrust Which side are you, Montek? Waning interest in public discussions… Tribute – UCAL Selvan… Build close rapport with business leaders WTO Meet: resolved to meet again Where a state respects its litterateurs… A welcome initiative by the judiciary Eternal support for capitalisation of PS banks Revive development banks... A friendly business group For whom the MIDS bell tolls? Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Polls and promises No engine for this car Quality education through the PPP mode Focus on quality of power - its only around 170-180V Mu Sigma – is no more Delhi is distant… Breaththrough in malaria control CSR and CMI: promise of another Srinivasan Ramanujan... West Bengal: mindless malignancy An inexplicable neglect Bihar elections - the Rajaji formula worked For whom the bell tolls? An enemy’s enemy is a friend Not just in-laws (and outlaws); they’ve renowned academics at the helm! Why land prices zoom in TN? More tributes to GR Cement prices continue to rise… The nuclear option When Ratan Tata visited SRM Five star activism stalls development activity Odisha: spectacular win by Naveen Patnaik Welcome changes that testify to Jayalalithaa’s return to health Sweeter prospects for sugar This scant respect for Law More Shakthi to Das’ elbow He continues the focus on social amelioration Lalu’s envy, India’s pride TN accounts for the largest recruits by the IT sector Naidu will soon build a new Hyderabad Modi storms Silicon Valley Plummeting profits of PSBs Welcome GST EVM is tamper-proof B H Kothari - a tribute Medical costs hit the roof... Tax agriculture Things happen by accident and not by design... Kulandai was a giant Another Indian music maestro at the UN Gay abandon in pricing Wanted: a second airport for Chennai Rs.1600 crore paper board plant of TNPL The balancing act Solar, solar everywhere … Kinetic Karnataka Muffled voices for merit… Small units prefers to remain small... Remembering Indira Sivasailam... The ‘Ayyo-yes’ is no more Delhi Chalo... CIPET hqrs to stay at Guindy – for the present? Preserving for the future When the President was rendered homeless… Engineering seats go abegging Auto components surge… Dr C Rangarajan returns to Chennai Fuel for thought Put expensive assets created to use... The Ports’ Pasha expands into Tamil Nadu A glass full of corruption Revving up the manufacturing sector Where is Rajaji? GNS - 100: our first subscriber Maximising the micro pricing … Funding the un-funded Poor quality of university VCs A yen for wastage… CII projects higher growth… TN-leverage strength of BHEL, NLC... Come elections, come advertisements... Readers' Mail The star of Spencers is no more Insurance companies bleeding, yet no decision on increasing FDI limit! Online not in line with brick and mortar businesses... Building loyalty through the stomach Godspeed, Chief Minister JJ Tihar, Puzhal not different from Parappana Agrahara Adharma of opposition politics A C Muthiah – his munificent bequeaths to science Colour-Chem’s colourful KRVS L&T- the specialty of special purpose vehicles Convulsions in The Hindu A rich pool of talent not utilised…. Valli, they are more marginalised Cutting the nose to spite the face Nuclear power at the nucleus SoA @ 80 Welcome focus on core competence Towards speedy justice Shaming of Tamils by Tamil farmers at Delhi Excel Generators provide the vital back-up Liberal imports idling indigenous capacities CRS, a jewel among managers, is no more. PC’s preference for professionals Of course, Gujarat is vibrant How Air-India loses customs... Wise Presidents Delhi returns to BJP Return to king coal for urea... A Grand Finale for SN’s MS centenary at the US… TGS- The king storyteller When TN politicians can emulate Kerala's Sweet news for TN sugar mills Demise of a media baron... More Shakti to resource mobilisation... Tribute Bihar – Nitish Kumar adopts the Lalu model A think tank for Chennai When small is no larger beautiful.. Kudos to NDTV... Quality silica from Neyveli Delhi is distant More heat than light A proud Madrasi Limit foreign borrowings to hi-tech, export potential projects... Don’t seem to feel the pulse… Diamond jubilee of Egmore Samskrt School Marketing expert Balagopal is no more TELANGANA at last…BUT Tribute – Manikam Ramaswami Road development slows down Lesson from Chandrababu Naidu A more liberated TN… Haul over the coal No mega rail project for Tamil Nadu The few handicaps... Parliament in paralysis... Align crops to agro climate endowments… Adapt Vajpayee dinner diplomacy F C Kohli - his concerns all embracing Shale gas and its shallow future Modi and the lady Gas is the way forward Noble nonagenarians... There was flood of milk. Reason: no milk commissioner! Banning booze... The rise and fall of Annamalai University An informal presentation - analytical, forward locking... Fortune for Indian Airlines The power-full Hindujas Shipping woes of Chennai companies Alexa – Talking Wikipedia The sea- saw battle continues... Increasing non co-operation of state leaders Russi Mody – a tribute Fortune 500 review Robber barons everywhere London, London Narayan Make standards certification mandatory... TN – agglomerate land holdings without alienating ownership …and of a popular trade leader PPP mode for upgrading Corporation Hospitals Boy, can you beat these? The Jan Dhan bonanza GM Technology at last! IPL type auction for VCs? Music happens Land reclamation from sea appears cheaper! Computation of GDP – conundrums continue Secularism and anti-Hinduism Rahman at CIC Pharma – overdose of copying Telangana in top gear… China invests in India Editor's Says All eyes on Sankara Nethralaya Infrastructure funding – lessons learnt Why this malaise in medical education? EEC at the National Media Centre Scientists urged to take up farmer-oriented research IPL - no surprise this scam Reliance’s TV – 18 ready to launch Tamil News Channel Inflation: are we emulating Argentina and Brazil? ONGC at KG Basin L&T: focus on infrastructure and more infrastructure… The why of tax incentives Silver Years of Madras Musings Airlines in India: cost and space Sri Lanka votes for change Vibrant Gujarat Naidu’s return augurs well for Seemandhra Poor representation for Kerala and TN in Cabinet MHC should not return to its old indisciplined ways Protest masters... Discoms deserve better… A Grand Finale for SN’s MS centenary at the US… The ‘Jayanthi Tax.’ Whistle-Stop Tour of Raghuram Rajan Intellectual of rare qualities S Ramanathan – a versatile musician, musicologist Welcome thrust on trade in Modi’s foreign visits... Tatas moving out of urea production... Mersal magnified The Swadeshi Trump No Maha Koottani in TN... IAS invades NDDB... Tough task taking states together When online building permits work…. Tribute – M V Murugappan Should we change the official year? Paytm karo... Roaring Ro-Ro facility When nations steal growth from one another… to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Shanti and Sadhana through Music Multi-faceted Venkat Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Editor's Notes Contrarian cousins The rise and rise of KCP Tatas moving out of urea production... Air Asia India will set new benchmarks for budget travel Streamlining mandatory third party cover New IT products of Ramco in the pipeline… Strengthen the base...
 
Why land prices zoom in TN?

S Mahalingam, ex-CFO, TCS, once pointed to Tamil Nadu fast losing its attraction as an investment destination. Apart from the pervasive power shortage, another major cause he mentioned was the high cost of land.

High cost of land is not Chennai-centric. It has spread to other parts of the state.  Certain developments contributed to a huge hike in price of even marginal and fallow lands. The first of these related to the boom in demand for professional colleges. So, large real estate dealers, civil contractors and other businessmen entered this field. The huge demand for seats in engineering, medical and other colleges imparting management education made these a highly profitable business. It was just a matter of time before politicians entered both the real estate and the business of education.

A second development related to the attractive sops given for wind energy. The 100 per cent depreciation and other liberal tax incentives attracted a wide range of businessmen to invest in windmills, making Tamil Nadu the lar-gest wind energy producing state in the country. An inevitable consequence of this was a huge increase in the price of land in the windy southern and western districts of the state.

A more recent development related to solar energy. The state that went through a severe power crisis in 2012 was bestowed with warm weather right through the year; it was further aided by the state policy to encourage solar power with liberal tax incentives. But, solar power required large tracts of land. Presto! The barren arid land mass of even Ramanathapuram district and its neighbourhood suddenly received attention, when a few manufacturers of auto components and forge units helped by Mahindra Solar, acquired large tracts of land at Aruppukottai. So the land that was not quite attractive in the arid district suddenly shot up in value!

Thus one sees a huge escalation in land prices across the state. This will impact the reputation of the state as an attractive destination for investment. There is the inevitable spread-effect: land sharks and speculators had little difficulty in jacking up price of land in other areas. At Tuticorin, when the Tatas planned to set up a titanium plant at a cost of Rs 3000 crore, they were discouraged by land prices shooting up from Rs 5000 an acre to Rs 5 lakh per acre. Of course, Tata’s abandoned the project.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com