The Modi government has abandoned its move to drastically dilute the provisions of the Land Acquisition Act 2013 that has stalled projects across India. Economic analysis shows that 43% of all projects problems.This face stagnant land acquisition may not be the only restriction: such projects are also constrained by a lack of profitability and the difficulties in obtaining financing. However, the land remains a major obstacle.
The Modi government's failure to push through a new law to accelerate acquisitions means that future projects may be delayed by three to five years because of time-consuming procedures established by law 2013. These include an impact assessment social (EIS), scrutiny by a committee of experts, obtaining consent from 70-80% of those affected, and a detailed relief and rehabilitation program.
But even as arguments rage in New Delhi on the pros and cons of the 2013 Act, the Chief Minister Chandrababu Naidu of Andhra Pradesh has found a way around the problem of building a new capital in 34,000 hectares of farmland. His strategy has been to make all farmers interested in the new capital, to voluntarily "pool" of their land with the development agency of the city. Once the city develops in a decade, which will contact nearly 30% of its grouped as ultra expensive city land land. This ena bles them to see the new city as a path to prosperity, not deprivation (as hap Penedès mining area in Singur or POSCO in Odisha).
Naidu also offers farmers a monthly payment per acre as high or higher than the rate of leasing of farmland in their favor. Agricultural loans up to Rs 1.5 lakh shall not apply. Landless workers will receive a monthly pension of 2,500 rupees. Eaters low cost and skilldevelopment centers have been opened to train farmers in new occupations. The employment guarantee scheme is supposed to provide work every day of the year. All these benefits together will cost a fraction of the cost of acquisition, so the government also earns enormously.
The new capital is being built in the fertile area of Krishna-Godavari, where it costs the earth today one fifty-nine crore by acre.Naidu has convinced farmers that when the city developed, the land will worth Rs 9.8 million rupees per acre. Prices are much higher in Hyderabad. Thus, farmers have delivered their land voluntarily, hoping for a lucky break when they get the land back developed. Until then, they have a reliable cash flow monthly government payments in addition to opportunities to improve skills and taking another job.
This drives home the point that agriculture is not very attractive. Many farmers want to quit whenever you get favorable terms. Romantic Pastoral farmers say they are married to agriculture, especially in areas with multiple fertile harvest. That romantic vision has been drilled dramatically in the Krishna-Godavari belt, among the most fertile areas in India.
Naidu give landowners 1,000 square yards of double crops and 200 square yards residential commercial land for each hectare of crop grouped. In addition they will get an annuity (paid in monthly installments) from Rs 30,000 per year and rising Rs 3,000 a year for 10 years.
The owners of the land reaped triple obtain a better deal: 1,000 square yards of residential land and 450 square yards of commercial land per acre grouped. They also receive an annuity starting at 50,000 rupees per year, increasing by 5,000 rupees per year for a decade. After 10 years, the city will be fully developed, and all farmers have become the city landlords, workers or employers.
About 400 farmers with 700 hectares of land have opposed the sharing and gone to court, arguing that they will get a better deal under the 2013 procurement law. Naidu has offered the choice between sharing and acquisition, confident that most of them ultimately prefer the pool. Against all odds, it has become a problem in a solution.
Now proposes sharing of a new airport near Visakhapatnam. Pooling the airport near Visakhapatnam. The grouping can be used whenever land prices soar after development. You can not work for the railroads, which do not increase local land values much. But it will work for most other projects. Other states should study the example of Naidu and adapt sharing for their own use. The key to success is that the scheme is voluntary, and makes farmers interested in development.
This is not just good policy, or a clever way to facilitate economic development. It is also the ethical development. When governments deprive people by the strength of the property, which is an act of glorification that should be prohibited, except under exceptional and unavoidable circumstances. The first priority should be to make all voluntary transactions.
Politicians can not be expected to put ethics first. But Naidu has shown that it is possible to combine ethics, good policy and rapid development. Seldom that happen.
The Modi government's failure to push through a new law to accelerate acquisitions means that future projects may be delayed by three to five years because of time-consuming procedures established by law 2013. These include an impact assessment social (EIS), scrutiny by a committee of experts, obtaining consent from 70-80% of those affected, and a detailed relief and rehabilitation program.
But even as arguments rage in New Delhi on the pros and cons of the 2013 Act, the Chief Minister Chandrababu Naidu of Andhra Pradesh has found a way around the problem of building a new capital in 34,000 hectares of farmland. His strategy has been to make all farmers interested in the new capital, to voluntarily "pool" of their land with the development agency of the city. Once the city develops in a decade, which will contact nearly 30% of its grouped as ultra expensive city land land. This ena bles them to see the new city as a path to prosperity, not deprivation (as hap Penedès mining area in Singur or POSCO in Odisha).
Naidu also offers farmers a monthly payment per acre as high or higher than the rate of leasing of farmland in their favor. Agricultural loans up to Rs 1.5 lakh shall not apply. Landless workers will receive a monthly pension of 2,500 rupees. Eaters low cost and skilldevelopment centers have been opened to train farmers in new occupations. The employment guarantee scheme is supposed to provide work every day of the year. All these benefits together will cost a fraction of the cost of acquisition, so the government also earns enormously.
The new capital is being built in the fertile area of Krishna-Godavari, where it costs the earth today one fifty-nine crore by acre.Naidu has convinced farmers that when the city developed, the land will worth Rs 9.8 million rupees per acre. Prices are much higher in Hyderabad. Thus, farmers have delivered their land voluntarily, hoping for a lucky break when they get the land back developed. Until then, they have a reliable cash flow monthly government payments in addition to opportunities to improve skills and taking another job.
This drives home the point that agriculture is not very attractive. Many farmers want to quit whenever you get favorable terms. Romantic Pastoral farmers say they are married to agriculture, especially in areas with multiple fertile harvest. That romantic vision has been drilled dramatically in the Krishna-Godavari belt, among the most fertile areas in India.
Naidu give landowners 1,000 square yards of double crops and 200 square yards residential commercial land for each hectare of crop grouped. In addition they will get an annuity (paid in monthly installments) from Rs 30,000 per year and rising Rs 3,000 a year for 10 years.
The owners of the land reaped triple obtain a better deal: 1,000 square yards of residential land and 450 square yards of commercial land per acre grouped. They also receive an annuity starting at 50,000 rupees per year, increasing by 5,000 rupees per year for a decade. After 10 years, the city will be fully developed, and all farmers have become the city landlords, workers or employers.
About 400 farmers with 700 hectares of land have opposed the sharing and gone to court, arguing that they will get a better deal under the 2013 procurement law. Naidu has offered the choice between sharing and acquisition, confident that most of them ultimately prefer the pool. Against all odds, it has become a problem in a solution.
Now proposes sharing of a new airport near Visakhapatnam. Pooling the airport near Visakhapatnam. The grouping can be used whenever land prices soar after development. You can not work for the railroads, which do not increase local land values much. But it will work for most other projects. Other states should study the example of Naidu and adapt sharing for their own use. The key to success is that the scheme is voluntary, and makes farmers interested in development.
This is not just good policy, or a clever way to facilitate economic development. It is also the ethical development. When governments deprive people by the strength of the property, which is an act of glorification that should be prohibited, except under exceptional and unavoidable circumstances. The first priority should be to make all voluntary transactions.
Politicians can not be expected to put ethics first. But Naidu has shown that it is possible to combine ethics, good policy and rapid development. Seldom that happen.
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