Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Monday, 1 August 2016

Land Pooling vs Land Acquisition ?



Remember those violent demonstrations against the proposed Land Acquisition Bill , all over the country , some 2 years ago ?


After weeks of debates - both inside and outside the Parliament and issue of 2/3 ordinances - , that bill remained in suspended animation


That is when I sent the following email to Shri Nitin Gadkariji ( 23  March  2015 )


Now , more than a year later , I am happy that different States are in the process of implementing different variations of my suggestion through a process of " Land Pooling " , for the following infrastructure projects :


#    Navi Mumbai Airport Influence Notified Area ( NAINA ) / 3,800 hectare

#    Navi Mumbai International Airport / 1,160 hectare / Rs 16,000 crore

#    Mumbai-Nagpur Communications Super Expressway / 22,000 hectare / Rs 30,000 crore

#    Andhra Pradesh Capital Region Development - Amravati / 13,355 hectare / Rs 1 lakh*crore



DNA ( 30 July 2016 ) reports :

#   Experts say a pooling scheme can change all that and encourage farmers to give up their land in lieu of monthly rent and other benefits

#   It's also a win-win for the government and the investors as it will only help in expediting the infrastructure and development related projects

#   The Gujarat , Chhattisgarh , Chadigarh and Andhra Pradesh governments too have found it better to go for land pooling scheme as against complex Land Acquisition , Rehabilitation and Resettlement Act , 2013 ( Laar )

#   In land pooling, resistance is least and compensation amount way less than Laar

#   Owners of smaller plots will also get a share certificate in the Company that will be formed for the project

#   Un-irrigated and irrigated farmers will stand to get annuity of Rs 50,000 and Rs 1 lakh per hectare with a provision of 10 % hike every year for a decade


This is what I wrote to Shri Gadkariji on 23 March 2015 :

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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 


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Thank you , Shri Gadkariji !

Thank you for listening to ordinary citizens

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02  Aug  2016

www.hemenparekh.in / blogs



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