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Last week, the Mamata Banerjee government announced that state agencies like the West Bengal Industrial Infrastructure Development Corporation (WBIIDC) will purchase land from farmers for developing industrial parks, in what is being touted as an incentive to investors. Unfortunately, however, the so-called solution to the land puzzle is neither new nor has been successful in its past endeavours.
Though initially the West Bengal Industrial Development Corporation was supposed to acquire the land for the project, it later decided against it, and went for direct purchase.
On February 26, 2005, Buddhadeb Bhattacharjee, who was then the Chief of Minister of Bengal, had promised Tata Metaliks that the state would allocate land on a priority basis to the company for its diversification project. The company, accordingly, had applied for land on March 15, 2005. Though it was initially looking for 500 acres of contiguous land, Tata Metaliks subsequently scaled it down to 350 acres.
But issues with land titles made buying 350 acres a problem, as well. Finally, the land requirement was settled at 300 acres.
Land prices in the interim more than doubled and the company was asked to pay the higher price. When WBIDC started purchasing the land three years back, prices were at Rs 3.5-4.5 lakh an acre, which went up to Rs 8-9 lakh an acre.
Over a time frame of some two-and-a-half years, WBIDC managed to acquire just 190 acres. But by then the Karnataka government had already confirmed 900 acres. In 2009, Tata Metaliks scrapped the project that would have brought investment of around Rs 800 crore.
There have been other failed attempts as well. For instance, the Indian Foundry Association was purchasing land directly for a foundry park, but ran into problems and finally had to seek the state government’s help.
There are many other instances, where private companies that have not resorted to muscle power, have faced roadblocks in purchasing land from farmers. What makes it especially difficult in the state is the character of the land. Around 68 per cent of Bengal’s total land mass is agricultural land. The state government has roughly 23,000 acres vested with it, but it is scattered across 18 districts.
Moreover, the spectacular land reforms carried out by the Left Front has reduced the average land holding in the state. Consider the figures: small and marginal farmers own 43 per cent of the total agricultural land in Bengal and they account for 90 per cent of the rural farming households.
So the new Land Bill, which calls for consent from 80 per cent of the land owners for private projects, will assume special significance in the wake of the character of land in Bengal. Singur and Nandigram —- symbolic of land agitation not just in Bengal but across the nation —- have brought forth difficulties in land acquisition.
It’s another matter that according to Mamata Banerjee’s mandatory purchase of land for projects vis-à-vis acquisition, the consent of land owners required in Bengal stands at 100 per cent for private projects.
