State Governments Eye ‘Salt Land Parcels’ From Centre For Infrastructure And Logistics Projects

Several state governments have expressed interest to acquire "salt land" currently under the control of the central government at concessional prices, and talks are currently in progress.

These states intend to utilise the land for enhancing infrastructure and for public use.

An official stated that a decision has not yet been made regarding the sale of salt land. The state governments' proposals for reasonable rates will be submitted to an active committee of secretaries once negotiations have taken place, reports Financial Express.  

The prospective state government will acquire the valuer's report before entering into negotiations for the purchase of these land parcels.

These land parcels are relevant for infrastructure projects and logistics parks, the official said.

The Centre owns 59,793 acres of salt land across the country via the salt department of the department for promotion of industry and internal trade (DPIIT).

Although there is significant interest in the salt land in Mumbai, it is not permitted for commercial utilisation. Around 5,000 acres is in Mumbai and its suburbs.

Previously, the Office of the Salt Commissioner received requests from various ministries, state governments, central and public sector enterprises for the transfer of land owned by the Centre, at places other than Mumbai and its suburbs, for public purposes.

Other salt land parcels are available in coastal areas of Tamil Nadu, Andhra Pradesh and Rajasthan.

As of January, this year, reports indicated that the DPIIT was actively developing a policy for the auction of salt land to private entities.

A drone survey of salt land was also being undertaken. The DPIIT stated in a document inviting applications for valuers that land declared surplus to the requirement of Salt Commissioner's Organisation (SCO) would be considered for transfer for public purposes in accordance with the General Financial Rules under intimation to the Ministry of Urban Development, as per a Business Standard report.

Currently, the existing guidelines prohibit the sale of salt land to private players.

The land can only be transferred to the central government, including ministries, departments, and public sector undertakings (PSUs), as well as state governments, their ministries, departments, and PSUs.