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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