MUMBAI: Maharashtra Industrial Development Corporation (MIDC) plans to acquire a 600-acre plot owned by public sector Hindustan Organic ChemicalsBSE 4.99 % (HOC) on the outskirts of Mumbai as it looks to boost its land bank.
"HOC has a huge piece of land in Rasayani, which touches the Patalganga industrial area. Since they were not using the land, we approached them to acquire around 600 acres of their land for industrial use," Bhushan Gagrani, chief executive officer of MIDC, told ET.
"We are willing to pay the prevailing ready reckoner rate or the MIDC industrial land rate in the area; whichever is higher," he added. MIDC, which supports manufacturing and processing industries, acquires land for industrial expansion .
As per the prevailing ready reckoner rate in Rasayani , the land parcel would be valued at around . 700 crore. Gagrani said the strategic location of the land would be of advantage to the MIDC.
"Since the land is located in proximity to Mumbai, it has huge demand for FDI (foreign direct investment ) and the logistics industry ," he said. "The company had got the land from the Maharashtra government and since it is a government company, the process of acquiring the land for Maharashtra Industrial Development Corporation will be easier," said Gagrani.
Hindustan Organic Chemicals did not respond to email queries. The company, which manufactures chemicals such as phenol, acetone, formaldehyde , nitrobenzene, aniline, nitro toluene and hydrogen peroxide, among other items, is reporting to the Board for Industrial and Financial Reconstruction (BIFR) as a sick unit. According to its 2012-13 annual report, the company's total accumulated losses stood at . 528.8 crore on March 2013, resulting in 100% erosion of net worth.