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This is an archive article published on August 30, 2010

Haryana treads cautiously on land acquisition

To scuttle large-scale litigation,the state’s land acquisition policy promises adequate compensation,a 33-year-old annuity,plots,livelihood skills and infrastructure facilities for land owners....

With none other than Congress general secretary Rahul Gandhi commending the relief and rehabilitation policy of Haryana for land acquired from farmers,the cash-rich state has opened its purse to scuttle large-scale litigations by land owners and to ensure hassle-free acquisition. Though neighbouring Punjab,a predominantly agrarian state like Haryana,is also setting its own benchmark in land compensation by offering a whopping Rs 1.5 crore per acre for recent land acquisitions for the upcoming international airport and Aerocity in Mohali,there are more votaries for Haryana’s policy owing to its focus on rehabilitation of those displaced.

A relatively small state but one with locational advantage,Haryana has been a favourite destination for investment by private developers and industry. The state was,therefore,one of the first to frame an R&R Policy for farmers on December 7,2007. In addition to rather aggressive land acquisitions for urban estates and industrial townships by its two main land-acquiring departments — Urban Estate,which acquires land for the Haryana Urban Development Authority (HUDA),and Industries Department,which does so for the Haryana Infrastructure and Industrial Development Corporation (HSIIDC) — the state was also riding the wave of high demand for land from private sector for industrial model townships,industrial parks,technology cities and public private partnership projects. Also,it was a much sought-after destination for Special Economic Zones (SEZs) — Haryana received over 93 proposals for SEZs out of which 46 were granted formal approval by the Centre and 31 were notified. In 2007,Haryana,where almost every land acquisition was challenged for release of land or enhanced compensation,framed a ‘please farmers’ policy entitling all government acquisitions after March 5,2005 — when Bhupinder Singh Hooda government came to power — to a five-component package which comes with lump sum compensation,33-year annuity,annual hike,plots,skill and village development in acquired areas.

New-found fortune

Prior to the fixation of minimum floor rates in March,2005,Haryana paid Rs 2 to 3 lakh per acre for industrial townships in Karnal,Barhi and Saha and the average cost of acquisition was Rs 5.63 lakh per acre from April,1997 to May,2004 for the Industrial Model Township (IMT) at Manesar. However,the rate awarded for Barhi after 2005 was a whopping Rs 50 lakh per acre,much higher than even the decided floor rate,says HSIIDC MD Rajiv Arora.

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According to Haryana Principal Secretary,Industries,Y S Malik,a recent project was dropped because land compensation made the project non-viable.

Royalty for 33 years

While the lump sum compensation is decided on the basis of floor rates — minimum rates that are paid to land owners — fixed by the government by dividing the state into three zones,the royalty is for a period of 33 years over and above the usual land compensation starting with Rs 15,000 per acre per annum and with an annual hike of Rs 500 every year. For land acquired for setting up of SEZs/ technology cities,technology parks,the annuity is Rs 30,000 per acre per annum to be paid by private developers with an annual hike of Rs 1,000 every year.

“The annuity has been incorporated into the policy as a farmer earns Rs 10,000-15000 per annum per acre from his land if he gives it on contract. It is only humanistic that he is compensated for the loss of livelihood,” says Arora.

Everyone gets land

The R&R Policy also provides for allotment of plots by HSIIDC/HUDA,depending upon a owner’s share in the land acquired and if 75 per cent or more of the land owned by him or his dwelling unit is acquired. The policy entitles him to a minimum of 50 square yard plot and a maximum plot size of 350 square yard depending on the size of the land or the house acquired.

Building infrastructure

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The R&R Policy puts an obligation on developers,including HSIIDC/HUDA,for creation of social infrastructure in the villages falling within the acquired land. HSIIDC,which had been earmarking about 1 per cent of the total cost of the project for development works of public benefit in such villages has now doubled the funding for Village Development Scheme to 2 per cent.

Skill development

Some 40 students completed their training in computer skills and English speaking under skill development initiative at Faridabad. This was part of the R&R Policy wherein developers were required to undertake such programmes for persons whose land had been acquired. Private consultants like IL&FS are undertaking socio-economic impact assessment studies to upgrade skills of land owners in Rohtak and Faridabad and improve their employability.

rates are higher here

The floor rates for the three zones,which were first fixed in 2005,were revised in 2007. Gurgaon has the highest floor rate of Rs 20 lakh an acre,the rest of the national capital region and Panchkula district command Rs 16 lakh an acre while the remaining parts of the state are in the league of Rs 8 lakh an acre.

Despite its ‘pro-farmer’ policy,Haryana is yet to experience relief from a large number of litigations. The recent acquisition of 467 acres by HUDA in Pinjore is an example. While it fetched a compensation of Rs 33 lakh an acre for land owners, over 400 cases were filed in the district courts of Panchkula for enhancement of compensation,according to details obtained from the Land Acquisition Officer of Panchkula.

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