Two-tier compensation package for farmers likely

Our Bureau

Land acquisition for SEZs and industrial projects

--------------------------------------------------------------------------------
On cards
The new plan would include a one-time payment and also a long-term
security arrangement through a staggered payment system.
There would be uniformity in defining marginal farmers and local
conditions would be factored in.
--------------------------------------------------------------------------------

New Delhi , Jan. 16

The Central Government is examining a new national two-tier compensation
package for farmers who could be losing their agricultural land to
proposed industrial estates and Special Economic Zones (SEZs).

The new plan would include a one-time payment to the persons whose land
would be acquired by the Government and also a long-term security
arrangement through a staggered payment system.

The second compensatory payment could be either a monthly or annual
fixed amount to be provided by the companies that would set up the
project and would continue for the lifetime of the project, the Minister
of State for Industries, Mr Ashwini Kumar, told reporters here.

"It would be a compensation in perpetuity till the project lasts," Mr
Kumar said adding that the proposal was being examined by the
Government, particularly keeping in mind the conditions of marginal
farmers.

Interestingly, the proposal has been suggested by the industry itself
during interactions with the Government.

"Industry itself has come up with the suggestion of long-term
compensation and it would continue for the lifetime of the project," Mr
Kumar said.

Asked about the problems that may come up in defining marginal farmers
since it varies from State to State, Mr Kumar said that there would be
uniformity and local conditions would be factored in.

PM's assurance

The move follows the assurance given by the Prime Minister, Dr Manmohan
Singh, earlier this month when he told a gathering of industrialists
about a proposed rehabilitation plan for farmers being evicted from
their land to make way for industrial projects and said that "the new
policy will be more progressive and humane to the long-term welfare of
all stakeholders."

The Prime Minister had said that the new rehabilitation policy would be
finalised in three months to tackle the triple issues of land
acquisition, displacement of people and their rehabilitation in a
transparent manner.

Major impediment

Acquisition of farmland for industrial purposes has become an impediment
in the Government's efforts of industrialisation across the States.

Recently, Tata's proposed small car project at Singur in West Bengal had
led to massive social unrest in the State and the Prime Minister and
President had to intervene to bring down the rising tensions, though a
solution still remains elusive.

As of date, similar opposition is continuing against acquisition of land
for a proposed SEZ at Nandigram, also in West Bengal, and has already
claimed lives.

Similar problems had cropped up in Orissa for the Korean steel maker
POSCO's proposed 10-million-tonne steel plant.

Tension is also brewing in States such as Haryana, Punjab and
Maharashtra even though the Centre is moving ahead with approvals for
new SEZs in different States. The Minister, however, maintained that the
Government had its concerns about the emotional issues of the farmers.

http://www.thehindubusinessline.com/2007/01/17/stories/2007011705100100.htm