State Public Sector Enterprises (SPSE)

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The State Public Sector Enterprises (SPSE), are the companies which are owned by the State Governments. The State Public Sector Enterprises operates in various sectors including roads and transportation, manufacturing, procurement, postal service, hotels and tourism, energy, banking and agriculture etc. These Public Sector Units are making huge losses and they hold vast tracts of land which is lying vacant across the country. These unused parcels of land could be used for many productive purposes such as educational institutions, affordable housing, industrialization, infrastructure projects and health facilities etc.


The Government of Maharashtra owns various Public-Sector Enterprises such as Maharashtra Tourism Development Corporation (MTDC), Maharashtra State Warehousing Corporation, Maharashtra State Electricity Transmission Company Limited, Maharashtra State Road Development Corporation Limited etc. The total number of Public Sector Units owned by the Government of Maharashtra is accounted to be 83 out of which 61 are functional and 22 are non -functional. There were 22 non-functional PSU with a total investment of ₹ 938 crore owned by the government. Some of these PSU are non-functional from the past 37 years. The public-sector units are holding vast tracts of unused land and other properties such as buildings, hotels, Warehouses etc, which are lying unused across the state.

Maharashtra State Warehousing Corporation Limited is a state-owned enterprise which was established in the year 1960 under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 which was replaced by Warehousing Corporation Act 1962. The main functions of the corporation are to construct warehouses for the storage of agricultural produce and to operate container freight station for exporters and importers. The total land obtained by the corporation prior to 2010-11 was 793 acres out of which 73 acres were vacant. From the year 2010-2015, the corporation purchased 135 acres of land in 15 locations valuing ₹ 13.36 crore despite having such huge tracts of vacant land. The corporation utilized only 62 acres of land, and the corporation has 146 acres of land lying vacant across the state.

Maharashtra Tourism Development Corporation Limited is a state-owned enterprise under the Companies Act 1956 in the year 1975 with an aim to promote to develop tourism in Maharashtra. The company owns 20 resorts, 3 restaurants, a scuba diving centre and a shopping centre. On the other hand, the company has also leased out its 76 resorts and 15 properties. The Government of India and Maharashtra provides financial grants to the corporation for its functions. The Comptroller Auditor General pointed out that the corporation handed over the ownership of the properties on lease on which they had no title. The company was facing difficulties to enter into a lease agreement and faces losses. There was no fixed base price for the properties which the company leased out, because of which the company was not able to receive sufficient lease rent and there was a delay in leasing out the properties and the company suffered a revenue loss of ₹ 13 crore. The corporation acquired 3657 acres of total land and between 2011-2016 the company acquired another 172 acres of land from state government, Maharashtra Industrial Development Corporation and private parties. Therefore 1680 acres of land is kept vacant across 33 locations. The company spent around ₹ 12 crore on multiple projects such as constructing restaurants, conference hall in a resort, upgradation of Ridhapur resort etc. However, because of lack of demand, all these projects failed to generate any revenue for the company and are lying idle and vacant. [1]


The Government of Gujarat owns around 68 functional PSU's and 13 non-functional PSU's. The total investment done by the Government of Gujarat accounted to be a ₹ 1,15,932.27 crore in 81 PSU's, out of which ₹ 799.43 crore was invested in the non-functional PSU's. Some of the profit-making PSU's includes Gujarat Gas Limited, Gujarat Energy Transmission Corporation Limited and Gujarat Mineral Development Corporation. The loss-making PSU's include Gujarat State Road and Transport Corporation, Gujarat State Financial Corporation and Gujarat Water Infrastructure Limited etc. These Public Sector Units holds a vast amount of unutilized land and other properties across the state which is being mismanaged by them.

Gujarat State Warehousing Corporation was established in the year 1960. The capacity of warehouses in the state was 13.08 lakh MT, out of which the state share was 1.45 lakh MT. The corporation holds huge tracts of vacant land across the state. The total area of vacant land under the corporation is around 28 acres and 2 acres of leasehold land which is lying partially vacant. These parcels of land were purchased by the corporation between the year 1972 and 1992 and since then they are kept unutilized. The total production of agricultural produce in the state for the year 2013-14 accounts to be 185.67 lakh MT, but the storage capacity in the government-owned warehouses is just 13.08 lakh MT, out of which the corporation share is only 1.45 lakh MTs. This account for just 7 percent of the total production in the state. The Corporation did not manage to increase their storage capacity since the year 1992. On the other hand, 97 godowns of the corporation out of the total 129 godowns remained vacant for a very long period due to their deteriorated conditions and lack of awareness among the farmers. In the case of Thasra Centre, two godowns remained vacant for the period of five years. [2]

Location Date of Purchse/ Possession Cost of Land/Lease rent per annum Vacant Land (in sq.m)
Anjar 14-02-1973 68,563 3,180
Amreli 22-01-1991 4,37,058 24,281
Bavla 04-11-1982 36,423 1,300
Botad 09-03-1973 62,000 3,390
Kapadvanj 01-03-1973 5,610 1,245
Dashrath (Vadodara) 18-02-1984 64,51,000 48,000
Deesa Lease hold land 22-11-1988 9,752 6,252
Khambhat 24-04-1979 36,433 3,000
Parapipaliya (Rajkot) 03-07-1992 6,07,500 20,235
Rakhiyal (Dahegam) 18-04-1973 21,420 1,015
Salal 15-07-1988 3,30,000 2,060
Sarodhi (Valsad) 31-07-1979 5,46,318 8,230
Thasra Lease hold land 01-01-1972 750 2,000
Geetanagar (Vapi) 06-01-1978 43,900 800


The Public- Sector Undertakings of Government of Haryana have huge tracts of land which are kept vacant and are encroached across the state. Haryana State Industrial and Infrastructure Development Corporation Limited is a government-owned company which was established in the year 1967. The main aim of the company is to develop and promote the medium and large scale industries and infrastructure in the state. [3]

Details of acquired land lying unutilized

Purpose of Acquisition Value ( in crore) Area (in acres)
Developement of Phase-V in Industrial Model Township Manesar 368.55 668
Setting up of SEZ at Gurugram 1619.28 1590
For Insttuional Purpose at sector-39 110.31 385.90
Land for Industrial Model Township 734.62 1501.54
2100 MW Gas based Power Plant in Bahadurgarh 63.76 174.71
Sewerage Treatment Plant 14.65 21.36
Development of Industrial Model Township in Sonepat 1577.69 3201.17
Total 4,127.02 6,874.67

In the year 1994, the company planned to construct 31 sheds at Gurugram but till date, not even a single shed had been constructed. This has lead to the non-utilization of 1.80 acres of land valuing ₹ 24 crores for more than 22 years.

The Company also acquired 26,794.66 acres of land as on 2017, for taking up development activities. Out of which, 24,760.75 acres (92.41 percent) fall within the National Capital Region (NCR). Out of the total land acquired 7542.76 acres of land has been kept vacant and no development has been taken upon the land. Apart from this, out of total 43.71 lakh sq m