For sale…Yeh Gulistan Hamara
Gulmarg land to be auctioned this week,
outside state investors solicited

M Hyderi

(from greakashmir.com)

Srinagar, Nov 5: Notwithstanding the public outcry and resentment over the proposed leasing of land in Gulmarg, now sensing calm the government after six months has decided to commence bidding of land amidst meadows. It took government six months to prepare auctioning plan for land in Gulmarg, authoritative sources told Greater Kashmir. They do add that a similar proposal for Pahalgam is in the offing.

The whole bidding process will commence this week with non-Kashmiris investors expected to emerge as main players in bidding deal. On October 17 this year, the state Cabinet had sanctioned the auction of 560 kanals of land through an Auction Committee, for construction of hotels, restaurants and other tourism related facilities in the virgin valley of Dhobighat. Since then, the auction notification awaited a green signal from the Civil Secretariat. Sources said the Secretariat started the correspondence with the concerned agencies few days before the Darbar closed here.

The Auction Committee headed by District Development Commissioner Varmul has been asked to finalize the formalities for the auction and float tenders through print and electronic media, sources said.

Bids will start from minimum reserved price of Rs 15 lakh per kanal. A plot area ceiling for hotels is of 16 kanals and not more than one plot will be allotted to a bidding family taking the total minimum investment for the hotel land to Rs 24 million.

Even though the authorities said that the land would be leased to state subjects alone who could go for joint ventures with outsiders, sources said the tenders could be bagged by big players from outside –financially more sound than the locals, who are presently inquiring about the tenders.

The present law of land abets it. Legal experts say the amendments made to the state’s Land Grants Rules during the regime of then Chief Minister Sheikh Muhammad Abdullah allows land to be leased to the outsiders for 99 years.

To make easy the lease to outside state investors, sources said the government has appointed Commissioner Secretary Tourism as Administrative Secretary (AS) to Government (Tourism) to scrutinize such cases for allotting them the land. And the outsiders could go into joint ventures with the state-subjects. The special post of AS was also sanctioned by the Cabinet.

In April this year, the then Tourism Minister Muzaffar Hussain Baig had initiated the proposal to lease the health resorts including the land at Gulmarg’s Dobhighat. Greater Kashmir was first to break the story.

The proposal had triggered public outcry amid fears that Kashmir was up for sale. Reacting to it, Baig had said “Kashmir is not on sale, its poverty is on sale.” Since then the proposal was shelved. Now Baig’s plans appear to have started bearing “fruits”.

Industry outcry

Local entrepreneurs oppose the government decision terming it “tricky and ambiguous” aimed to hit the “interests of the locals especially Kashmiris”. Also they said that the eligibility criteria put by the government that only people experienced from the tourism industry could compete will deprive many a potential player from local business industry to compete.

Syed Shakeel Qalander, President Federation Chamber of Industries and Commerce while “firmly opposing” the decision suggested that for the “up gradation of the infrastructure at tourist resorts government should take services of state –of- the- art international consultancies, prepare a master plan and the ask the locals alone to come up with ventures on the guidelines of the plan.”

He said the banks should go liberal. “Otherwise, people from other states have so huge finances that they’ll eat up entire Kashmir. Today it’s Gulmarg, tomorrow could be somewhere else,” Shakeel said.

“Tourism is in our veins. It’s our heritage. Our industries like that of apple juice cater to countries like US and Germany… We are the best. What is the need of outsiders?” argued Nazir Ahmed Dar, the Vice President Kashmir Chamber of Industries and Commerce.

He said the “only investment required from outside state was in the form of travel agents who could fetch customers for our proposed tourist infrastructure.” Nazir said the Federation recently met top financing agencies, including JK Bank’s Chairman Haseeb Drabu for assistance. “Haseeb assured us of assistance,” Nazir said. Kashmir Hotels and Restaurants Federation (KHROF) said despite requests the authorities have not clarified “doubts” of whether the land would be leased to outsiders or not.

“At the face of it, it appears to be tricky,” its president Zahoor Ahmed Tramboo, said.
Zahoor said Kashmir is already abundant with natural beauty and so doesn’t need huge investments at hill resorts like Gulmarg. “This is the need of places like Singapore, not Kashmir,” he said.To mention last month, KHROF had asked the government to withdraw the Cabinet decision.

Experts speak

Experts say the orders are ambiguous at many points that could create problems in the longer run if joint ventures were started. “Some clauses regarding the loan cover need clarity. If there is a joint venture and the company goes for mortgage. What will be happen at the time of third party transfer,” an expert said.

Authorities speak

Officials said the “administrative orders are awaited.” “Nothing as yet has come in black and white as there was some confusion over the allotment of land to outsiders and the expertise required by the bidders. Things will get clear this week,” an official of Tourism Department pleading anonymity said.

Soon after the Cabinet decision, the Commissioner Secretary Tourism Nayeem Akhter had reportedly said that the land would be leased to state subjects alone. “They can enter into joint ventures with outside bidders for the development of hotels, restaurants and other tourism related facilities,” Nayeem was quoted as saying.

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