Special Economic Zones (SEZ) have become a bad word, no thanks to the almost naked lust for land of the promoters. Farmers and villagers from whom land is acquired by governmental agencies at throwaway prices well below the market rate, are at daggers drawn.
But the Jindal group which is setting up a steel mill in West Bengal has come up with an interesting plan. Not only will it compensate the 742 families, who have to make way for the plant, in cash for the entire value of the land, it will also provide an equal amount in shares of the new company, at par.
JSW Bengal Steel Ltd won’t roll till 2011, but the shares of the landowners will be deposited in a trust. They will have the option to sell the shares when the company goes public. Jindal will acquire nearly 4,000 acres from the government at Rs 1.9 lakh per acre. But the remaining 570 acres will have to be acquired directly from the farmers.
Is this the way to go?
Read the full story here: Jindal offers shares for land