MP eases land acquisition for SEZs

To remove hurdles in acquiring land areas for special economic zone (SEZ) developers in the state, the MP government has approved amendments to the existing Barren Land Development Policy, 2002.

As many as three corporate houses and their associates are willing to invest more than Rs 15,000 crore for developing product-specific and multi-product SEZs in the state.

Corporate houses will be offered at least 100 hectares and at most 300 hectares. "The land will be available on lease for two years and after the project is completed, the lease will be extended for 30 years on a maximum fee of Rs 1,000 per hectare of land," a government spokesperson said.

In the recent past, big corporate houses, including ITC, failed to develop their projects on land areas of their choice in Madhya Pradesh since farmers did not allow the state government to acquire land.

The government is hopeful of developing ravines of the Chambal through the amended new policy. The Project Clearance Board will consider the investment proposals in this regard.

The key point of the amended policy, which may trigger a debate, is that the investors will be exempt from provisions of the Madhya Pradesh Agriculture Land Cultivation Act, 1960, as per which land ceilings vary between 25 acres and 75 acres per landholder, depending on the type of land.

In Bhopal land speculation has increased because of real state promoters venturing into the media and vice versa. As a result, land prices in rural areas are skyrocketing in the vicinity of Bhopal and Indore.

"Farmers in the Cheechli village (10 km from Bhopal) are asking for Rs 20 lakh for one acre and the government has no control on the premium," said a real estate broker, adding, "since farmers believe industrialists and developers make money out of the land bought from them, they do not want to sell their land at low rates."

Responding to policy, Deviram Choure, a member of the Madhya Pradesh Kisan Sangharsh Samiti, has said the Samiti will protest if the policy gives priority to corporate houses' interests over farmers'.

On the other hand, the amended policy will help industrialists and the government to utilise approximately 10 lakh hectares of barren land in various areas of the state through private partnership. The policy has been framed primarily to offer land to big corporate houses.

According to the rural development minister of the state, the initial offer is for poor people, freedom fighters, ex-servicemen, and self-help groups (SHGs), but the prime objective is to put the land on offer to attract investment.

"The existing policy failed to attract investment and an amendment was needed," a government spokesperson told Business Standard. Food-processing units, multi-product SEZs and mega projects will get priority for barren land allotment.