Disagreement between Maharashtra Industrial Development Corporation (MIDC) and The Chatterjee Group (TCG) over the land transfer rates is understood to be holding up the progress of International Biotech Park at Hinjewadi in Pune.

For the past three months, there has been hardly any marketing or promotional activity for the International Biotech Park on account of the disagreement on the land transfer rates. The land transfer rights (LTR) agreement, which was supposed to be signed on the day of the inauguration of the park on November 14, 2003, is yet to be signed by both parties. The LTR authorizes the transfer of ownership from MIDC to TCG. TCG seems to be not happy with the transfer rates proposed by MIDC, said sources.

Shreya Life Sciences and Emcure Pharma are the only occupants in the park since it was commissioned in 2001. All other likely occupants are in final stages of negotiations with TCG. They are in dilemma on account of the ongoing confusion between MIDC and TCG. "Until the LTR agreement is signed, TCG will not be keen to promote the park," said an industry source.

TCG is a professional organisation having past experience in developing biotech parks both in India and abroad. The MIDC-TCG joint venture came into existence in early 2003, 88 per cent of the stake is held by TCG, the balance by MIDC. As per the joint venture agreement, TCG will promote the park by making an investment of Rs.250 crore and MIDC will back up with easy government legislation and infrastructure services. The land transfer is part of the agreement.

When contacted sources in both MIDC and TCG maintained that they are in the verge of finalisation of the LTR agreement, which would happen over the next two weeks.