Will not allow alienation of State land to pvt parties: TN Finance Min

CHENNAI: State Finance Minister Palanivel Thiaga Rajan on Tuesday insisted that the State government would not permit alienation of the land acquired from it for airport projects to private parties without collecting due price.

Replying to the Budget debate in the State Assembly, Thiaga Rajan referred to acquisition of 80% land for airport expansion project in Coimbatore and said, "In many places, AAI (Airport Authority of India) transfers land acquired by the State government for such projects to private parties, particularly one firm. Everyone knows the name. To stop that, we have already insisted that the agreement must be changed. The State government will not allow alienation of land and it will only permit leases."

Stating that as long as the government uses the land, it would continue to be a minimum lease, the minister informed the House that if the land is to be given to private, the rent or lease or equity (shares) must be paid.

"AAI has been arguing that after creating the agreement, the state could insist if they (AAI) sell the land. It cannot question if they (AAI) sub-lease the land. It is not agreeable because they will sub-lease it to Adani. As long as you (AAI) keep it you will get it at a nominal rate. In whatever manner you transfer it to private parties, we need the due price for it."

Adding that the proposal of a new agreement between the state and centre (AAI) to this effect was pending, the minister urged BJP MLA Tamizhisai Soundararajan to get in touch with the Union Minister belonging to her party to seal the deal.