The state cabinet has approved a major policy decision to provide four times the market rate as compensation for rural land acquisition, aimed at speeding up infrastructure and development projects. Chief Minister Mohan Yadav announced the decision in Bhopal, calling it a historic step that makes farmers partners in development.
 Madhya Pradesh State Cabinet Clears 4x Compensation For Rural Land Acquisition

Madhya Pradesh Cabinet Grants Four Times Market Rate as Compensation for Land Acquisition

The Madhya Pradesh state cabinet has made a significant decision to grant four times the market rate as compensation for land acquisition in rural areas, ensuring development projects are not hampered by land acquisition issues.

Key Points:

  • Multiplier Increased: The multiplier for rural areas has been increased to 2.0.
  • Total Payout: Four times the market rate will be paid as compensation.
  • Legal Framework: The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules 2015 will be applicable.
  • Applicability: The new norms will come into effect immediately for all rural development projects.

Chief Minister Mohan Yadav termed the decision as historic, stating it would accelerate development and make farmers partners in progress.

Compensation for Displaced Farmers

The move will enable farmers to receive higher compensation for agricultural land acquired by the Central and State governments for key projects such as railway lines and dam construction.

Wheat Procurement Update

  • Production: Crop production has doubled in the state this year.
  • Packaging: Polythene bags are being used for procurement due to a shortage of jute.
  • Centre's Help: The state is seeking an increased procurement quota from the Government of India.

In 2014, Madhya Pradesh was declared in "sector 1", following which double compensation was being paid. However, this often required additional packages to be cleared.

From 2023-24, compensation worth Rs 16,000 crore has been given to 55,530 farmers.