An article in Hindustan Times ( 24 Feb 2016 ) reports :
" ...the government has now asked Industrial
Corridors to award infrastructure and manufacturing projects only after the
bidding companies show they have acquired the land needed "
I presume that , at this stage , based on the bid
amount ( and other qualifying criteria ) , one bidder has been selected from
among those who submitted bids , for a specific project to be located on a
given piece of land , close to the Industrial Corridor
But the order ( award ) will not be placed till such
time he produces " proof " of having acquired the land , which could
, well belong to a dozen farmers !
Obviously , no industrialist will buy a specific piece
of land in advance , from a dozen farmers , not knowing whether his bid will succeed
or not !
But now that he has won the bid , he must approach
those 12 farmers for the purchase of the land and enter into serious
negotiations
Since the farmers " know " that an
industrialist will approach them , ONLY if he has won the bid , they are in a
much better bargaining position !
They can bargain collectively and quote a very high
price - may be a price far in excess of what the winning industrialist had
budgeted for , in his bid !
The negotiations can take weeks or months to conclude
an agreement or may even fail , forcing the industrialist to back out of his commitment
That may require selecting the next ( highest ? )
bidder and repeat the process all over !
The whole idea of awarding only AFTER acquisition of
required land was to speed up the project implementation
But in this idea, I see a danger of endless going in
circles !
WHAT IS THE
SOLUTION ?
Consider following
excerpt from my email to Shri Nitin Gadkariji , on 23 March 2015 :
[ I think there is a
simple solution to the concerns expressed by the farmers . Please consider the
following :
* Each project will be tied to a
specific SPV , created for that purpose only
* In the first instance , affected farmers
will create a " Cooperative Society "
* Co-operative Society will issue shares to each
land-donor farmer , in proportion to the QUANTITY / VALUE of the land
donated by him
* In turn , Co-operative Society will receive shares
in the SPV , equal to the value of the land + a cash compensation equal to
4 times the value of the land
* Farmer's shares of Cooperative Society cannot be sold in
open market before 5 years but can be gifted to wife / Children
* Shares of Cooperative Society in the SPV itself cannot
be sold for next 10 years
* The " Cash-Value Compensation " received by
the Co-operative Society ( ie 4 times the land value ), will
be deployed as follows :
* To be immediately paid in cash to the
farmers............ 2 times
* To be deposited in the Jan-Dhan Account of
each farmer as FIXED DEPOSIT ( with 10 @ interest )....2 times ]
Since each State is in serious - and healthy - competition with
other States to attract investments , those which offer an equitable and just
solution to the farmers as well as to the industrialists , will succeed
And there will be no need to pass any Land Acquisition Bill in
Rajya Sabha !
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hemenparekh.in / blogs
27 Feb 2016
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