Madhya Pradesh government asks BHEL to surrender land

Madhya Pradesh government has asked Bharat Heavy Electricals Limited (BHEL) management to surrender a 32 acre prime land allotted to it in 1965. The land in Habibganj was allotted by BHEL to 14 industries that worked as its ancillary units on a licence fee. In its missive to BHEL's chairman and managing director, state government has asked the said land be transferred to the industrialists or surrender the land as BHEL is not the lease holder of the land and cannot transfer it to the industries that are facing problem in getting financial assistance and loan from banks. Moreover, since the land is with BHEL, Bhopal Municipal Corporation (BMC) has not been able to undertake any development work. Industries are dependent on rented water tankers to keep the units operational. Banks have refused loans citing dispute on ownership of the land. Three units have already downed their shutters having failed to cope with adverse conditions. Others may follow the same, said sources. In 1965, BHEL invited entrepreneurs to set up ancillary units on this land to cater its requirements and it was allotted to 14 small and medium enterprises (SMEs). Problem started after BHEL revised licence fee to about 200 times in 1981. Unit owners were asked either to pay revised fee and renewal done or evict the land. Peeved over this demand, members of BHEL Ancillary Habibganj Industrial association moved court and got a stay on the eviction notices. more at: http://timesofindia.indiatimes.com/city/bhopal/Madhya-Pradesh-government-asks-BHEL-to-surrender-land/articleshow/47020801.cms