Simplifying Land Acquisition
Context :
Panel asks Road Ministry to simplify land acquisition, contract award norms / BL / 29 July 2021
Extract :
Ø A mechanism for UPFRONT PAYMENT to the land-owner can be worked out to guarantee a payment in the form of ANNUITY FOR THE LONG-TERM, financed through land value captured by the State Government
Ø The Committee believes that such a system will reduce land acquisition litigation which cause time and cost overrun, the report said
My Take :
More than 6 YEARS ago, I sent following e-mail to Shri Nitin Gadkariji :
Ø Land Acquisition Solution …………………………………..( 05 May 2015 )
Extract :
Dear Nitinji,
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 / hcp@RecruitGuru.com / 29 July 2021
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