People Giving Up Land for Projects

Shri Ajay Shankar

Chairman,

Expert Committee on Ease of Doing Business / DIPP

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Dear Shri Shankar-ji :

I refer to this news report ( Business Line / 18 March 2016 ) , wherein you said :

*  Corporate need to gain confidence of the people giving up their land

*  Confidence must be instilled to voluntarily convert agri land for industrial development

*  People giving up land need to see the benefits of better job prospects and rising income from such

    projects

*  They have to feel partnered and (as) beneficiaries

I hope those in power appreciate and " act " upon your suggestions

In this regard , I reproduce below my own email

with regards,

hemen  parekh

www.hemenparekh.in

Marol , Mumbai , India

hcp@RecruitGuru.com

( M ) +91 - 98,67,55,08,08

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(  My  email  to  Shri Gadkariji  on   23 March 2015  )

Dear Nitin Gadkariji,

Farmers are opposing this bill for the following reasons :

>    Low / Inadequate compensation

>    Once land is sold , not being able to benefit from the appreciation of land value , when the project comes up

>   Private parties bought their land at low price and then sold it ( mostly to private builders ) for a whooping profit

I think there is a simple solution to the concerns expressed by the farmers . Please consider the following :

>     Each project will be tied to a specific SPV , created for that purpose only

>    In the first instance , affected farmers will create a " Cooperative Society " 

>   Co-operative Society will issue shares to each land-donor farmer , in proportion to the QUANTITY / VALUE of the land donated by him

>   In turn , Co-operative Society will receive shares in the SPV , equal to the value of the land + a cash compensation equal to 4 times the value of the land

>  Farmer's shares of Cooperative Society cannot be sold in open market before 5 years but can be gifted to wife / Children

>  Shares of Cooperative Society in the SPV itself cannot be sold for next 10 years

>  The " Cash-Value Compensation " received by the Co-operative Society ( ie 4 times the land value ),  will be deployed as follows :

   *  To be immediately paid in cash to the farmers............ 2 times

   *  To be deposited in the Jan-Dhan Account of each farmer as FIXED DEPOSIT ( with 10 @ interest ).............2 times

Dear Gadkariji ,

My proposal will ensure :

>     Immediate attractive compensation to farmers

>     Recurring income from FD in Jan Dhan account ( for a sustained livelihood )

>     Continued sense of " Ownership " in the SPV / Project , which will facilitate QUICK implementation without resistance

>     Willing farmers themselves canvassing / convincing " Reluctant " farmers

>     No fear of private parties benefiting by appreciation of land value

>    A sense of " Enlarged Participation " thru Co-operative Society representing them on the Board of Directors of SPV

>    Board Representation enabling farmers to ensure that honest decisions are being taken

PLEASE , GIVE  THIS  SUGGESTION   A  CONSIDERATION 

with regards,

hemen  parekh

Mumbai

hcp@RecruitGuru.com

( M ) 0 - 98,67,55,08,08

www.hemenparekh.in

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Gujarat Govt to buy land in joint venture with farmers

(  Source :  Times  of  India  /  07  May  2015  )

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GANDHINAGAR: Even as the Land Acquisition Bill gives heartburn to the Narendra Modi government for being branded as 'anti-farmer' by opposition parties, the Gujarat government has proposed joint ventures (JV) with farmers under the new industrial policy.

The new Gujarat model encourages farmer groups to give their land to Gujarat Industrial Development Corporation (GIDC) to develop industrial parks under a JV with GIDC.

While the scheme was introduced in a different avatar a few years ago, officials say it would work well at a time when acquiring land for industry has become a sensitive issue.

The move promises to be a solution to contain growing discontent over agriculture land acquisition for industrial purpose.

The 'Financial Assistance to Industrial Park' (FAIP) scheme declared recently under the new industrial policy promotes JVs with farmers to develop industrial parks ranging from 20 to 100 hectares.

"Farmers will be made equity and profit partners in proportion of their land holding. Under the JV, farmers may continue to be owners of the land but may sacrifice their right in lieu of equity and profit rights in the park," said an official.

Saurabh Patel, state government spokesperson and in-charge minister for industry and mines, said, "It is a win-win model for all.

GIDC faces a lot of issues in acquiring private land.

 The new model will motivate farmers."

 Modalities of the JV will be approved by the State Level Expert Committee.

Industrial parks under FAIP will be provided financial assistance of 25% of eligible fixed capital investment in building and infrastructure facilities up to Rs 30 crore excluding the land cost.

Additional Rs 20 crore assistance will be provided if the park developer (JV also) develop hostel and dormitory facility for workers.

The private developer or JV of farmers and GIDC will get 100% reimbursement of stamp duty paid. Individual units will also get 50% stamp duty waiver.