Many Singurs in offing

Land for industries: Farmers, government at loggerheads

The farmers’ agitation which began last week at Halligudi village of Gadag district was not a spontaneous one. There has been a simmering discontent among the farmers in three villages of Gadag ever since the steel plant giant Posco set its eyes on their land to set up a plant.

No doubt, industrial growth is an indicator of State’s growth. The State government believes that the Posco plant is a boon to the State as it is going to invest Rs 32,000 crore and generate thousands of jobs. But it has become a bane for some of the farmers who are opposing such acquisition.

Such agitations are not confined only to Halligudi. Farmers across the State, who have to part with their land, are waging a struggle against what they see as ‘snatching their livelihood’. The government is ‘depositing’ both government land and private land including cultivated land at the land bank for industrial use.  

Officers of the KIADB say that more than farmers, it is middlemen who first create problem for land acquisition. There are instances where influential people taking general power of attorney (GPA) on behalf of farmers over land notified for acquisition by the KIADB.

As the KIADB gives compensation 25 per cent more than the guidance value fixed by the government, middlemen enter the scene and cheat farmers, sources said. The land acquisition process followed by the KIADB has become a model for many States, and farmers are getting even more than market rate for their land. Each family which sells land is also provided with a job by the industry, Industries Minister Murugesh Nirani argues.

Whatever be the argument, it has not been easy for the government to acquire land to pass on to investors. The government has identified 1.21 lakh acres, spread across 30 districts, for setting up a land bank.

Of the land, nearly 85,934 acres are privately-owned, mostly cultivable land. After rolling out a red carpet for investors at the Global Investors’ Meet (GIM) in 2010, the government is under tremendous pressure to fulfil its promise of providing land to industries.

 Of the 389 projects approved, land is required for 70 projects. The KIADB has notified land for companies that have deposited a minimum of 40 per cent of the total cost of the land cost.

Over the last two years, 28,000 acres of land has been notified for industry. At the same time, farmers’ agitation has forced the government to denotify about 6,000 acres of land acquired in Davangere, Udupi and Shimoga districts during the same period.

Tension is building in Murugod of Gadag district where notices have been slapped on farmers to part with their land for the Posco plant. The government has turned jittery with media reporting the discontent among farmers. This was evident when Nirani warned JD(S) chief H D Deve Gowda that he would be held directly responsible if the GIM projects fail to take off.

Loopholes

Whatever be the argument in favour of attracting big investment to the State, there are some inherent loopholes in the Land Acquisition Act. Some of the provisions under the Act were framed during the British regime. A government is empowered to acquire any immovable property anywhere, anytime in the larger interest of society.

Moreover, the acquisition process is not transparent. For instance, once the preliminary notification is issued, the owners are not entitled to use the land. There is no time limit for the government to complete the acquisition process. The final notification can be issued at its convenience.

There are instances wherein the final notifications are issued a decade after the issuing of preliminary notification. Even after a decade, the owners get the compensation fixed in the preliminary notification, officials point out.

The KIADB boasts of following an innovative consent acquisition system. But farmers’ views are not heard even at public hearings by the Price Advisory Committee (PAC) headed by deputy commissioner, it is said.

Fixing compensation, according to officials, has been the most contentious issue rather than convincing farmers to give up their land. The land rate is fixed based on the guidance value of land as worked out by the Stamps and Registration Department. The PAC can increase the compensation amount up to 25 pc more (considered as the market value).

The guidance value is only the saleable value of land. Unlike those who sell residential and commercial sites in urban areas for profit, the guidance value can’t be the true compensation to those who are traditionally dependent on agriculture for their livelihood. Besides, the guidance value of land in villages is very low, official say.

No takers

That is why many farmers are against acquisition of their land. The KIADB's offer to give 9,583 sqft of developed land for every acre acquired instead of monetary compensation, has no takers.

The farmers cannot make use of the developed land, though complete rights will be given to use it for both residential and commercial purposes. Finally, they have to surrender the developed plot to the company which would have taken over the entire land, officials point out.

During the GIM, the government announced a separate land acquisition policy to bring in uniformity in awarding compensation. But so far, there is no progress in that direction.
Compensation is a contentious issue, says K Shyam Bhat, KIADB Chief Executive Officer.

“Farmers agitate when they have to part with their fertile land. They want adequate compensation, while we go by the guidance value of land. We need to look at this issue. There is also a need to fix the time limit to complete the acquisition process after issuing the preliminary notification. The government is planning to amend the Land Acquisition Act,” he says.