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

 

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