They paid $4.5m per acre of land for rural land in India. In comparison, land in the Galveston area costs less than $10K an acre. And this is for land near a bustling port at the center of a major oil and gas boom vs farmland in India. Something doesn't smell right. The interest alone on 10-Year Treasury Notes on $4.5m is $100K per year. I can't believe that Indian farmland yields $100K per year per acre. Heck, if US farmland, which is acknowledged to be generally superior to much of the world's stock, yielded that much, it wouldn't be selling for thousands of dollars per acre.
>> They paid $4.5m per acre of land for rural land in India.
Like I said... corruption is endemic in the process. I doubt Mom and Pop Indiancitizen would see anywhere near that amount.
Wonder why Posco goes through the Indian gov’t instead of negotiating for land on the open market?
And if you say “because the government won’t let ‘em” then I’ll reply (again) that corruption is endemic in this whole process.
Care to back up that figure with a link? Because only land in Mumbai and Delhi is worth that much. In rural Orissa.that would be the land cost for say, 100-200 acres, not 1 acre.
You say that Union Carbide got taken for a ride. Actualy UC killed thousands in Bhopal, India when Methyl Iso-Cyante escaped from poorly maintained tanks. Enron foolishly bribed officials so they could charge double to triple the prevailing rate for electic power. Obviously, they had to shut down.
Where do you get your data on India from - Chinese sources?