Madhya Pradesh Government Increases Land Acquisition Compensation for Farmers
Madhya Pradesh Chief Minister Mohan Yadav has announced a historic decision to increase the compensation to farmers for acquiring their land for projects by four times the guideline value.
Key Points:
- The government has increased the land acquisition compensation factor from 1 to 2.
- Farmers will receive four times the compensation for the land acquired.
- The decision will apply to land acquisition projects and will also extend to all pending cases where a final award has not yet been passed.
- The move is expected to positively impact key infrastructure projects related to irrigation, construction of new roads, bridges, railway lines, and dams.
Background:
The Madhya Pradesh Bhumi Arjan, Puarwas aur Punarvyasthapan me Uchit Pratikar of Pardarshita ka Adhiniym 2013, or Bhu-Arjan Adhiniyam-2013, was used by the state government to implement this change.
- Section 26 of the Act sets out principles for land valuation, aiming to ensure fair compensation for farmers, transparency, and rehabilitation.
- The Chief Minister stated that farmers' welfare is the top priority, and the state government decided to amend the Act to ensure farmers receive fair prices for their land.
Implementation:
A cabinet committee was formed to implement this change, which will be headed by Public Works Department Minister Rakesh Singh.
- Small and Medium Enterprises Minister Chaitanya Kashyap and Water Resources Minister Tulsiram Silawat were appointed as members of the committee.
- The committee's first meeting was held on January 21, with representatives from FICCI, CREDAI, CII, farmers' associations, and farmers' representatives in attendance.
Impact:
The new system is expected to accelerate infrastructural development, with an estimated ₹70,000 to ₹75,000 crore invested annually in Madhya Pradesh for roads, bridges, railway lines, national highways, expressways, irrigation projects, and infrastructure development.
- The Public Works Department has already paid approximately ₹10,000 crore in compensation over the past three years.
- Under the new system, this will amount to approximately ₹20,000 crore, which will be deposited directly into farmers' accounts.
Chief Minister's Statement:
Yadav said that providing cultivators with four times the compensation is not just a decision, it is a pledge to respect farmers.
"Farmers' interests are the government's top priority. The government wants development and farmers' interests to progress together," he said.
"This decision will establish a balance between development projects and farmers' interests. If we are to move forward with development, major decisions regarding land acquisition will be necessary. We are engaging farmers in this development," he added.