Incidentally, the Karnataka government has offered 250 acres of land for the ISB at Bidadi industrial area, 30 km from Bangalore while Tamil Nadu government has expressed its desire to give land at free of cost near Chennai. Andhra Pradesh chief minister N Chandra Babu Naidu who gave a presentation to the visiting team of consortia on Sunday offered to give necessary infrastructure including buildings at Ranga Reddy about 15 km fromHyderabad.

Indian School of Business (ISB) was to be set up in association with Kellogg's School of Management and Wharton School of Management at Kharghar Hill, Navi Mumbai. City and Industrial development Corporation (Cidco), a state government undertaking had offered 10 hectares of land with one floor space index (FSI) at the moderate rate of Rs 15 crore (Rs 1,500 per square metre) inclusive of all other costs.

However, Cidco's amended proposal said that the consortia will have to pay an additional Rs 4.50 crore if they are going for 30 hectares of green area without FSI (Rs 150 per square metre). If 0.1 FSI is granted for the green area (Rs 1,500 per sq mt of FSI), the consortium will have to pay additional Rs 4.50 crore. Thus the total land cost mounted to Rs 24 crore.

In case of 10 hectares buildable land with one FSI and 60 hectares of non- buildable land, the consortium will have to pay Rs 33 crore. Moreover, the promoters will have to pay Rs 50 per sq mt as water source development charges, Rs30 per meter square for the total plot as development charges, Rs 40 per meter square of built up area as building plans to be submitted by ISB, Rs 4 per sq meter as scrutiny charges and Rs 10 per meter square as security deposit. For 10+30 hectare proposal, these charges were worth Rs 4.40 crore and for 10+60 hectare proposal the consortia will have to pay Rs 6.70 crore.

The consortium will have to pay Rs 1,000 towards documentation charges and Rs 100 as nominal lease rent per plot per year in advance for the entire lease of 60 years.

Interestingly, the `Shivshahi' rule also laid down a condition of 10 per cent quota for locals during admissions in the proposed ISB on the basis of `sons of soil' principle. The consortium at one time had prepared to accept the state government's proposal but on condition that the land and other costs will not exceed Rs 15 crore.

The state government ultimately withdrew from its stand on keeping quota for locals and agreed to give land at the above given charges.However, the consortium is believed to have stuck to their stand of not paying more than Rs 15 crore.