Showcased in Singur

LAND acquisition is the big new political question for India. And Bengal is working out what could be the model answer. Six hundred of the 900 acres the Tatas had identified in Singur for their automobile project have been acquired despite high voltage agitation. Buddhadev Bhattacharjee hasn8217;t suddenly sounded defensive like other chief ministers when interrogated about land for industry. On the contrary, the Bengal chief minister only recently said the acquisition process would be completed by year-end. Bhattacharjee has two things going for him: good homework and firm commitment to change.

Because the Bengal CM had done his homework he managed to avoid several typical problems. The Tatas had originally wanted 997 acres. But the Bengal government reduced that to 900 acres by pointing out that 97 acres of multi-cropped land were agriculturally useful enough to be kept out of industrial use. So there was evidence from the beginning that the government was mindful of agriculture-related issues. The second bit of homework was on compensation packages. Although land is being bought from farmers by the West Bengal Industrial Development Corporation WBIDC and state agencies, buying land is not, as these columns have argued, the first best option, most landholders have been willing to sell. The reason is that markups were built into the offer. Over and above the Rs 6-12 lakh per acre price being offered, there8217;s a 30 per cent solatium 8212; the word in its classical/legal connotation means compensation for injured feelings 8212; a 10 per cent incentive for not going to court and a commitment to pay 12 per cent interest in case of delayed payments. This is an intelligently worked out offer.

But in Indian politics, smart offers can be outsmarted. Had Bhattacharjee not appeared completely convinced of his logic 8212; a big auto plant will not only create plant-related and ancillary jobs but also create a general investment tempo 8212; he would have been ambushed. And it is not as if Bhattacharjee8217;s party HQ in Delhi is completely in agreement with him over his economic policy. But he8217;s proving that in today8217;s India CMs committed to change can win a lot of leeway from their Delhi party bosses. CMs from other parties who keep referring to 8220;direction from above8221; miss that point. National elections are being increasingly influenced by state-level politics. CMs who can deliver states are powerful. They should learn to use that power.