High land prices a roadblock to Infosys’ entry into Gujarat

The Gujarat government has been trying to coax Infosys, one of the country's IT giants, to set up its campus in the state. But for the past one year, some hurdle or the other has been delaying the plan. And the latest obstacle seems to be land prices.

The state government has in all offered 41 acres of land under the Mega Industrial Policy, but, the price of the land is proving a bit expensive for Infosys. "After getting land price quotes from state government rates, Infosys has demanded land at a lesser price. Now they are waiting for Gujarat government's reply," said an official on condition of anonymity.

Infosys has almost finalised two locations — Satyam land and a unit in GIDC Electronics Estate - according to a state government official. "State government has given two different locations and Infosys has shown interest in both of them. But now the decision is getting delayed as Infy is negotiating land prices with the state government," said the official who is close to the development.

The 25 acres piece of land near Infocity was given to Satyam and later returned to the state government. "The same land has been suggested to Infosys. Simultaneously, a 16 acres piece of land in GIDC Electronic Estate in Gandhinagar has been offered to them," he said.

According to the official, there is a possibility of Infosys developing a SEZ on the 25 acres of land and a BPO campus at the 16 acres land. "Together, state government has offered a total 41 acres of land to Infosys," the official said.