MP to raise funds from auction of real estate and mines

The Madhya Pradesh government, which has sustained its economy by auctioning key minerals, now plans to sell valuable land worth almost a billion rupees belonging to the Public Works Department (PWD) in Bhopal, Indore and Jabalpur to breathe new life into the drained treasury.

The land will be e-auctioned and the government will sign contracts with private institutions for commercial use of the properties. A three-member committee will be former to implement the decision taken at a high-level ministerial committee meeting.

The land to go under the hammer is in the prime locations of Jawahar Chowk in Bhopal (14 acres), at the departmental workshop near Palasia in old Indore (4 acres) and another 3.5 acres near the Civil Lines in Jabalpur.

The Revenue Department valuation of the land to be leased in these cities could be fixed between Rs 400 and 450 crore, but the auction may fetch the government up to Rs 1,000 crore as the possible commercial yield of the land parcels is assessed to be quite high.

The value of 14 acres of land in Jawahar Chowk in Bhopal is about Rs 123 crore.

Similarly, four acres of land in Palasia in Indore are worth Rs 150 crore.

Similarly, some dilapidated government offices and houses are there in Civil Lines area in Jabalpur. This land has been estimated at about Rs 150 crore.

The Finance Department had asked all departments to offer action plans to raise revenue.

PWD offered to sell the land or to lease it to the private parties and a three-member of officers has been formed to work out contract details with private entities.

Madhya Pradesh Road Development Corporation Managing Director Sudam Khade, Officer on Special Duty in PWD, R.K. Vaidya and Superintending Engineer, Administration in PWD will be the members. They will prepare an action plan in ten days for the disposal of assets.

Minerals Minister Pradeep Jaiswal says his department has played a big role in increasing the revenue of the state during the past one year. Survey and prospecting work of limestone in Damoh, Dhar and Satna and bauxite and laterite in Dindori and laterite in Mandsaur have partially helped the state tide over the economic crisis after it inherited empty coffers from the BJP regime in December last year.

With the hostile Central government squeezing funds accruing to the state, the government plans to hold e-auction of mineral blocks.

An MoU has been signed with the NMDC, MOIL, and MECL for mineral exploration and prospecting work. The state government will earn Rs 23,506 crore from Bandar Diamond Block during lease period. Aditya Birla Group's Essel Mining and Industries Ltd., Mumbai has been handed 364 hectares of diamond mines in the state.

Jaiswal said the government has received Rs 1,234 crore offers under the new sand mining policy.

A proposal of Rs 217 crore has been received against offset price of Rs 100 crore for Hoshangabad district. Rs 6,331 crore is expected on completion of entire auction process of sand mines.

Jaiswal said the Minerals Department has earned Rs 2,226.85 crore so far during the current financial year. This is Rs 34.35 crores more than the previous year.

The state has also plugged pilferage of revenue from illegal mining and transportation of the minerals. So far, Rs 34.12 crore have been earned through fines against illegal mining and transportation or storage of minerals.

( With inputs from IANS )