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