RIICO holds back conversion of Manpur Machedi zone, senses realty bonanza, ET RealEstate
JAIPUR: Sensing a real estate bonanza in the conversion of the dedicated leather industrial zone Manpur Machedi near Jaipur on the Delhi road into a general zone, the incumbent RIICO administration has withheld the approval granted by it during the previous Congress regime.
In fact, the conversion, which exponentially escalates the land prices, benefiting the plot owners, has been under scrutiny of the current govt, as the decision was taken during the final six months of the previous administration.
The alteration of land use from dedicated to general category paves the way for all sectors of industries to establish units, consequently causing the prices to skyrocket. For instance, e-auctions conducted by RIICO for an unsold plot in Manpur Machedi leather zone in July 2023 garnered Rs 2960 per sq metre, while the general land rates in the vicinity are about Rs 30,000.
The plot owners can potentially reap returns exceeding 1000% on re-sale to general industry if the conversion is permitted, revealed a source within RIICO. It is intriguing that the representations for the conversion initially emanated from the political class, specifically between September 14-30, 2022, according to an internal report.
Kishanpole MLA Ameen Kagzi, Adarsh Nagar MLA Rafeek Khan, former Shahpura MLA Alok Beniwal, former Jamwa Ramgarh MLA Gopal Meena, secretary of Rajasthan Pradesh Congress Committee Prashant Sharma, and Manpur Machedi sarpanch Pinki Regar all wrote to the former chief minister’s office (CMO) during the 16-day period, advocating for conversion. Within a month, the CMO communicated with the additional chief secretary of industries to address the matter.
Although RIICO approved the conversion on September 21, 2023, it necessitated final approval from the industries department. Promptly, after the lifting of model code of conduct, the industries department responded, stating that RIICO has the authority to make the decision. Without losing time, RIICO issued the conversion order on December 7, 2023, without seeking the views of the new govt.
RIICO also permitted the existing industrial units to alter their product, from leather to any other, effectively opening the entire complex to the general category of industries. When asked for an opinion, an industry representative, on condition of anonymity, said that since most of the plots in the leather complex were already sold (46 out of 52), there was no necessity for conversion.
“Conversion happens when a dedicated zone fails to attract investors. In this case, it was almost sold out,” he added.
