The Madhya Pradesh government earned ₹1,134 crore over the past four years by selling state-owned land. But the government has now changed its approach. Instead of selling land, the government will now focus on redeveloping it for commercial and residential use.
Decision to Shift Strategy
The decision to create a Public Assets Management (PAM) department was taken in 2020 under former Chief Minister Shivraj Singh Chouhan’s government. The department was tasked with identifying and selling unused government land to generate revenue. However, the new BJP government under Chief Minister Mohan Yadav believes that redevelopment is a better alternative. Two senior government officials, who wished to remain anonymous, revealed that this shift in strategy was influenced by protests from factory workers and farmers.
Background of PAM Department
The PAM department was formed following a 2019 Supreme Court order that required the state to clear ₹90 crore in pending salaries for workers of the now-defunct Binod Mills in Ujjain. The idea behind the department was to sell unused land to raise funds for such payments and boost state revenue.
Binod Mills, which occupied 18 acres of prime land in Ujjain, was divided into nine parcels, valued at ₹546 crore in total. Four of these parcels have already been sold, generating ₹69.43 crore for the government.
Since 2020, the Madhya Pradesh government has identified 655 such assets across the state. Over 100 parcels, covering 110 acres, have been sold, with notable sales including a 5,000-square-meter plot in Bhopal that fetched ₹73 crore.
Apart from government-owned land, the state also initiated the process of reclaiming land from closed textile mills such as New Bhopal Textile Mills, Hira Mills (Ujjain), Tapti Mills (Burhanpur), Malwa Mills, and Kalyan Mills (Indore). These properties were originally taken over by the National Textile Corporation (NTC) under the Sick Textile Undertakings (Nationalization) Act, 1974. However, in 2022, the government started efforts to reclaim them for redevelopment.
Protests Against Land Sales
The sale of government land triggered strong protests in several parts of Madhya Pradesh. In Morena, farmers demanded that the Kailaras Sugar Factory be revived instead of being sold. This sugar factory, defunct since 2011, was identified for sale under the asset monetization plan.
On January 21, thousands of farmers staged a protest at the Kailaras Sugar Factory, opposing the sale and threatening a ‘Jail Bharo Andolan’ (mass voluntary arrests). Ashok Tiwari, a farmer leader from Morena, explained that the factory, started in 1970 with 26,000 shareholders, played a major role in boosting sugarcane farming and employment in the Chambal region. He also highlighted that the factory’s presence helped reduce dacoity (banditry) in the area by providing jobs to former outlaws.
Tiwari criticized the government for selling assets instead of making them operational. He argued that at a time when the government is inviting industries to set up businesses, it should not be selling off its own factories.
Government’s Response
Facing resistance and failing to secure desired land prices, the government is now considering reviving the Kailaras Sugar Factory under a Public-Private Partnership (PPP) model. However, farmers insist that the government or cooperatives should run it instead of private players. They have also demanded that the factory’s Annual General Meeting (AGM) be conducted.
A senior state government official explained that another major reason for shifting strategy was the long-term impact of selling prime government land. He stated that once sold, land cannot be recovered easily. If the government needs land for future projects, it may face difficulties acquiring it again.
New Plan for Redevelopment
With the new strategy, the government is identifying land for redevelopment rather than outright sale. It plans to hand over land to agencies such as:
- Indore Development Authority
- Bhopal Development Authority
- Housing Boards
- Urban Development Departments
- Municipal Corporations
Sanjay Jain, Joint Director (PAM), explained the plan:
“We are now focusing on freeing encroached land, clearing dues, and transferring these properties to housing boards, urban departments, and other agencies instead of selling them.”
As part of this shift, the remaining five parcels of Binod Mills land will be considered for sale or redevelopment.
Another major case is Indore’s Hukumchand Mill, which spans 17.82 hectares and was liquidated in 1992. A Debt Recovery Tribunal (DRT) was created after banks and the labour union approached the Madhya Pradesh High Court, but no progress was made.
Now, the PAM department has collaborated with Indore Municipal Corporation and MP Housing Board to redevelop the Hukumchand Mill area. Plans include setting up IT parks, green spaces, and residential projects to clear outstanding dues worth ₹435.89 crore.
Approval Process for Redevelopment Projects
Under the new approach, development authorities can now submit proposals to PAM. The department will:
- Review the proposal
- Prepare a report
- Present it to the Chief Secretary for approval
- Forward it to the Cabinet for final approval
With this new policy, the government aims to generate revenue while retaining control over valuable land instead of selling it off completely.
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