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Farmers jack up asking price for airport land

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Sanjay JogAneesh Phadnis Mumbai
Last Updated : Jan 21 2013 | 12:12 AM IST

Farmers whose land has to be acquired for the Navi Mumbai International Airport have demanded a hefty compensation of Rs 20 crore an acre at Panvel near here.

According to real estate experts, that is nearly five times the prevailing price of an acre on the old Mumbai-Pune highway, just seven km from the notified airport area. The market price varies from Rs 3-4 crore.

The demand comes at a time when the state government under the Land Acquisition Act, 1894, has sent notices to villagers in Pargaon and Owale, two of the total 17 villages and settlements affected, for the acquisition of 424 hectares (1,047 acres).

It also comes just a day after the Union cabinet cleared the Land Acquisition Bill, recommending sweeping changes in compensation. According to the proposed central law, the compensation would be four times the market price in rural areas and double in urban areas.

By the revised plan, the total area required for the airport’s development is 2,020 hectares. That includes the airport, land for aeronautical use, area required to recourse the Ulwe river, area for non-aeronautical activities, a mangrove park and off-site infrastructure. Of that, nearly 66 per cent is in possession of the state-run City and Industrial Development Corporation (Cidco), the nodal authority for development.

Roughly 13 per cent is government land and 424 hectares is private land. Cidco is finalising the qualification norms for the project. The project affected persons (PAPs )and the Konkan divisional commission are scheduled to meet on Wednesday to discuss the contentious issue of compensation.

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The government is trying to tackle the issue at two levels: compensation for the acquisition of 424 hectares owned by residents of 17 villages and outsiders and relief and rehabilitation for 3,000 families to be displaced. The relief and rehabilitation package will be finalised by Cidco and the award for land acquisition will be decided by the Raigad district collector.

Those seeking compensation say their demand is justified. R C Gharat, advisor to the PAPs, says, “The demand for compensation of Rs 20 crore per acre is justified, taking into account the rapidly rising land prices in the villages affected by the proposed project and Navi Mumbai in general.”

There is an alternative being proposed. “If the government is unable to meet our demand for Rs 20 crore per acre, then the PAPs are prepared to hand over 60 per cent of their land but they want 40 per cent of their land developed by the government or the project developer. If the government agrees, the PAPs will not seek any compensation. By development, we mean provision of civic amenities,” says Gharat.

“Cidco will wait for the outcome of a committee headed by the Konkan divisional commissioner for the payment of compensation to PAPs,” says Cidco chairman Pramod Hindurao.

“The centre is yet to enact the new land acquisition Act but it is proposed to come into force with retrospective effect. That will complicate the situation and push up acquisition costs,” said a senior government official.

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First Published: Sep 07 2011 | 12:03 AM IST

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