Yeddyurappa defends purchase of land

 On Thursday he released statistics to buttress his argument that the previous governments had purchased land at much higher rate as compared to the then existing guidance value.

Accordingly, during the tenure of  N Dharam Singh and H D Kumaraswamy governments and the President’s rule, land was purchased at several times higher rate than the guidance value fixed by the government. For instance, KHB in 2006-07 had purchased 750 acre land in Anekal at Rs 44 lakh per acre for Suryanagar housing project. But the guidance value was just Rs 1.25 lakh to Rs 3 lakh per acre. At times the government had paid more than then prevailing prices causing loss to the tune of crores of rupees to the exchequer, he alleged.

Yeddyurappa said that as many as 1.14 lakh applications are pending before the KHB seeking residential sites in Bangalore. So, KHB decided to take up a housing scheme in Chikaballapur, which is located close to Devanahalli international airport. The proposed project site is just 13 kms away from the airport, he added.

He said the KHB will make around Rs 19 lakh profit for every acre if the project is implemented. The total cost of development per acre is estimated to be Rs 90 lakh, including the land purchase cost. If the Government sells the developed land at Rs 500 per sqft, it will earn Rs 19 lakh profit, he stated.

Moreover, the KHB Board in its meeting held on June 2009, has decided to implement the project under PPP model. So, the question of the KHB incurring loss by implementing the project will not arise, he claimed.