Ad Here  
TN – agglomerate land holdings without alienating ownership IAS invades NDDB... 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 Shaming of Tamils by Tamil farmers at Delhi L&T- the specialty of special purpose vehicles Plummeting profits of PSBs Tihar, Puzhal not different from Parappana Agrahara Air Asia India will set new benchmarks for budget travel Mersal magnified A proud Madrasi When nations steal growth from one another… Make standards certification mandatory... The Gulf aviation boom Welcome thrust on trade in Modi’s foreign visits... Fortune 500 review S V Raju – a ‘good’ true liberal SoA @ 80 L&T: focus on infrastructure and more infrastructure… S Ramanathan – a versatile musician, musicologist Streamlining mandatory third party cover Measuring roof tops in terms of KW/MW Where is Rajaji? The star of Spencers is no more Towards speedy justice CSR and CMI: promise of another Srinivasan Ramanujan... Maximising the micro pricing … Preserving for the future Modi storms Silicon Valley New IT products of Ramco in the pipeline… A Grand Finale for SN’s MS centenary at the US… London, London Narayan For whom the MIDS bell tolls? The rise and fall of Annamalai University Revving up the manufacturing sector When small is no larger beautiful.. Which side are you, Montek? Waning interest in public discussions… …and of a popular trade leader Lalu’s envy, India’s pride Bihar – Nitish Kumar adopts the Lalu model Solar, solar everywhere … The few handicaps... CII projects higher growth… The ‘Ayyo-yes’ is no more Padma Bhushan for A Ramakrishna More Shakti to resource mobilisation... Recognition to role of NBFCs.... Protest masters... Lesson from Chandrababu Naidu Quality education through the PPP mode TELANGANA at last…BUT A think tank for Chennai Online not in line with brick and mortar businesses... Convulsions in The Hindu Mu Sigma – is no more Adharma of opposition politics When online building permits work…. The Jan Dhan bonanza ONGC at KG Basin Colour-Chem’s colourful KRVS No engine for this car Polls and promises PC’s preference for professionals When TN politicians can emulate Kerala's Put expensive assets created to use... Shipping woes of Chennai companies An enemy’s enemy is a friend He saved millions from starvation... Naidu will soon build a new Hyderabad Rs.1600 crore paper board plant of TNPL TN-leverage strength of BHEL, NLC... Kinetic Karnataka Where a state respects its litterateurs… Excel Generators provide the vital back-up Paytm karo... B H Kothari - a tribute Discoms deserve better… Rahman at CIC Valli, they are more marginalised Adapt Vajpayee dinner diplomacy Land reclamation from sea appears cheaper! A yen for wastage… CRS, a jewel among managers, is no more. Don’t seem to feel the pulse… Diamond jubilee of Egmore Samskrt School Delhi returns to BJP Tribute R Sridhar steps down as CEO of Shriram Capital A glass full of corruption Modi and the lady Odisha: spectacular win by Naveen Patnaik Wise Presidents Tough task taking states together The balancing act The why of tax incentives Engineering seats go abegging Come elections, come advertisements... Russi Mody – a tribute Marketing expert Balagopal is no more The sea- saw battle continues... TGS- The king storyteller Medical costs hit the roof... Shale gas and its shallow future When the President was rendered homeless… Fall in crude prices help in oil sector reform Road development slows down Should we change the official year? A C Muthiah – his munificent bequeaths to science No Maha Koottani in TN... Poor representation for Kerala and TN in Cabinet Tribute – UCAL Selvan… Tax agriculture When Ratan Tata visited SRM GM Technology at last! Small units prefers to remain small... Tatas moving out of urea production... West Bengal: mindless malignancy The Ports’ Pasha expands into Tamil Nadu Making ‘my Amaravati’... Nuclear power at the nucleus Gas is the way forward Why land prices zoom in TN? Tatas moving out of urea production... More Shakthi to Das’ elbow An informal presentation - analytical, forward locking... Permanent secretariat for TN GIM Welcome GST Sweeter prospects for sugar More heat than light Kulandai was a giant Insurance companies bleeding, yet no decision on increasing FDI limit! All eyes on Sankara Nethralaya Not just in-laws (and outlaws); they’ve renowned academics at the helm! Solar thermal shines… He continues the focus on social amelioration Revive development banks... Robber barons everywhere Limit foreign borrowings to hi-tech, export potential projects... Secularism and anti-Hinduism Kudos to NDTV... The Swadeshi Trump IPL - no surprise this scam Cleaning Ganga – relocate tanneries and install electric crematoria Auto components surge… Dr C Rangarajan returns to Chennai Another Indian music maestro at the UN Delhi is distant… Five star activism stalls development activity Quality silica from Neyveli Parliament in paralysis... Why this malaise in medical education? Building loyalty through the stomach Poor quality of university VCs Focus on quality of power - its only around 170-180V Noble nonagenarians... Haul over the coal Cutting the nose to spite the face Music happens A rich pool of talent not utilised…. More tributes to GR Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated PPP mode for upgrading Corporation Hospitals Boy, can you beat these? A welcome initiative by the judiciary The rise and rise of KCP Pharma – overdose of copying Increasing non co-operation of state leaders No mega rail project for Tamil Nadu Fortune for Indian Airlines Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Breaththrough in malaria control Moily’s bold thrust The ‘Jayanthi Tax.’ Airlines in India: cost and space Tribute – M V Murugappan Sri Lanka votes for change An inexplicable neglect Godspeed, Chief Minister JJ Strengthen the base... TN accounts for the largest recruits by the IT sector Tribute – Manikam Ramaswami Readers' Mail A professional at the helm of IRDA... Naidu’s return augurs well for Seemandhra Welcome changes that testify to Jayalalithaa’s return to health Shanti and Sadhana through Music Contrarian cousins Liberal imports idling indigenous capacities WTO Meet: resolved to meet again Alexa – Talking Wikipedia There was flood of milk. Reason: no milk commissioner! A friendly business group A Grand Finale for SN’s MS centenary at the US… Banning booze... Delhi is distant Funding the un-funded Remembering Indira Sivasailam... TIAM turns a full cycle Cement prices continue to rise… Silver Years of Madras Musings Vibrant Gujarat Roaring Ro-Ro facility Multi-faceted Venkat EVM is tamper-proof Sweet news for TN sugar mills F C Kohli - his concerns all embracing China invests in India How Air-India loses customs... Editor's Says Computation of GDP – conundrums continue Align crops to agro climate endowments… IPL type auction for VCs? Intellectual of rare qualities MHC should not return to its old indisciplined ways Whistle-Stop Tour of Raghuram Rajan Wanted: a second airport for Chennai Of course, Gujarat is vibrant The brown list of Venkitaramanan Things happen by accident and not by design... Like Hinduism: many paths to reach God... Return to king coal for urea... Demise of a media baron... For whom the bell tolls? Inflation: are we emulating Argentina and Brazil? GNS - 100: our first subscriber Scientists urged to take up farmer-oriented research Editor's Notes The nuclear option This scant respect for Law CIPET hqrs to stay at Guindy – for the present? Welcome focus on core competence Telangana in top gear… Build close rapport with business leaders Eternal support for capitalisation of PS banks Infrastructure funding – lessons learnt Muffled voices for merit… Fuel for thought EEC at the National Media Centre Reliance’s TV – 18 ready to launch Tamil News Channel A more liberated TN… The power-full Hindujas Bihar elections - the Rajaji formula worked Gay abandon in pricing Delhi Chalo...
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 :
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
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236