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The Telegraph, Calcutta, 16 Apr 2008
Take-and-give land policy
Sambit Saha
Calcutta, April 15: Jharkhand is planning to make it mandatory for industry to offer free plots and a regular monthly income to landlosers, a proposal investors will find too stringent and states like Bengal too difficult to resist.

The deputy chief minister of Jharkhand, Sudhir Mahato, told The Telegraph that the proposal for the free land and steady payment would be part of an upcoming rehabilitation and resettlement scheme.

According to the policy, tracts equivalent to one tenth of that to be acquired will have to be given free elsewhere to the landlosers. The landlosers will also get Rs 1,000 an acre every month for 30 years with a cap of Rs 10,000 a month for an individual. The two incentives will be over and above full compensation in cash for the land.

Mahato, who was in Calcutta to participate in the annual general meeting of the CII (eastern region), said the policy would be ready by the end of April or early May.

If the Jharkhand government presses ahead with the policy, it is unlikely to go down well with investors, especially those who have sought large tracts of land for steel projects in the state.

The policy is also being seen as a signal to discourage huge acquisitions. Under the policy, the higher the acquisition, the larger the slice of land to be given free.

“I don’t think it is feasible. It will raise land cost tremendously,” said an official of a company that has lined up investments in Jharkhand.

Perhaps keeping the approaching elections in mind, Mahato said: “Those who are giving land should enjoy 10 times better lifestyle than they had before giving land. It cannot be use and throw.”

The policy could put pressure on states like Bengal and Orissa, which are facing resistance to land acquisition, to make their rehabilitation terms more landloser-friendly.

But a senior Bengal government official said: “We are neither threatened nor worried about what others doing.”

He said Bengal was also considering a proposal to give losers small parcels of land in the vicinity of the industry.

Often, land prices go up by many times after an industrial unit comes up and those who gave land feel cheated. By giving land near the unit, the government plans to address that concern. “The idea is to capture the future value of the land after the industry comes up,” the official said.

Other officials said a proposal to pay a monthly compensation to the elderly was also under consideration.




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