`Land acquisition should be for public purposes only'

K.V. Kurmanath

Advertisement

Guntur Feb. 10 The Union Minister of State for Commerce, Mr Jairam
Ramesh, feels that governments should not acquire land for private
industries and special economic zones (SEZs).

He suggested according equity shares to the farmers giving land for the
projects, besides ensuring a constant stream of income for 25-30 years
as against one-time payment of compensation.

"When States acquire land, it should be used for public purposes such as
irrigation, power and highways. States should not be acquiring land for
private SEZs," he said.

Talking to Business Line, the Minister said it (land deals for setting
up SEZs) should be done between the private players and the landowner,
with the State restricting itself to set down the rules for such
acquisition and monitor the process in order to ensure payment of market
value.

Compensation

On payment of compensation, Mr Jairam Ramesh advocated against one-time
payment. "The down payment should be minimum. We should provide for
annuity, ensuring a steady income stream for the landowner for 25-30
years. There should be set rules for mode of payments," he explained.

He also pointed out that the landowners should not be denied benefits of
appreciation. Whatever compensation they received, it was based on the
present market value.

Though the Government had cleared about 60 AEZs (agricultural exports
zones), most of them had not taken off largely because the States were
not able to provide the required infrastructure.

"They could not attract the anchor private entrepreneurs who could drive
agriculture exports," he said.

"We have created a window of Rs 50 crore in the Ministry to get some of
these AEZs going. APEDA has identified a couple of areas with maximum
potential to take off. Some of these could be flowers from Sikkim,
pineapple from north-east and mangoes from Nuziveedu and Chittoor," he
said.

The Minister hoped that at least five to six AEZs would happen soon.

On agricultural exports, he said the share of these exports was 10 per
cent of in country's total exports as against 20 per cent in the mid-1990s.

There were many reasons for this decline. Contributions from other
sectors grew faster than that of agricultural exports.
http://www.thehindubusinessline.com/2007/02/11/stories/2007021103190500.htm