The Rajasthan government has paid Rs 2.39 crore as tax deducted at source (TDS) to the Income Tax (I-T) department on a deal for acquiring 323.33 hectares of land in Kota, presumably for setting up the Indian Institute of Technology (IIT).

The Urban Improvement Trust (UIT) of Kota paid the TDS amounting to over Rs 2.39 crore to the department early this month, I-T Commissioner (TDS) Sunil Verma said.

Although HRD Minister Arjun Singh, during a recent visit to the state, had said that the IIT could be set up at any other place than Kota, local BJP MLAs have been insisting on setting up the prestigious tech school in Kota, a city sprinkled with coaching institutes for IIT entrance exam.

Congress MLAs have favoured Jaipur for establishing the IIT.

Finance Minister P Chidambaram had, in his Budget speech for 2008-09, announced that three new IITs would come up in Andhra Pradesh, Bihar and Rajasthan this fiscal.