Farmers not ready to let go of land cheap

Demand their pound of flesh for ArcelorMittal, Tata Metaliks’, NTPC projects

The Karnataka government is facing an uphill task acquiring land for big-ticket investment projects in the steel and power sector. Farmers in Bellary and Haveri districts, where mega steel plants of ArcelorMittal and

Tata Metaliks are proposed, are up in arms against the government for fixing ‘throwaway’ prices for their land. With farmers rejecting the government’s offer, the land acquisition process for these projects is likely to be delayed.

Already, farmers in Bijapur district have rejected the government prices for their land notified for acquisition to set up 4,000 Mw super critical thermal power station by the National Thermal Power Corporation (NTPC). Farmers have demanded Rs20-30 lakh per acre as against the government compensation of between Rs2.75 lakh and Rs3 lakh per acre.

The farmers from Kuditini village in Bellary district staged a dharna recently demanding better compensation for their land. At a meeting convened by the deputy commissioner of Bellary, who is also the head of price fixation committee, farmers rejected the prices offered by the government. As against the Rs16 lakh, Rs12 lakh and Rs8 lakh per acre depending on the proximity to the National Highway offered by the government, farmers have demanded Rs77 lakh per acre.

“We have announced the price based on the three years of registration value in that area. It is not feasible to pay Rs 77 lakh per acre. The deputy commissioner of Bellary has submitted his recommendations to the board of the Karnataka Industrial Area Development Board (KIADB). The board would take a decision in this regard in the next 15 days,” a senior official of KIADB told Business Standard.

The KIADB has issued preliminary notification for acquisition of 1,658 acres in Boodagatti and Agadi villages in Haveri district for Tata Metaliks, which has proposed a 3 million tonne per annum iron and steel plant in two phases for an investment of Rs 15,000 crore. Another 608 acres are being acquired for the housing project of Tatas in Devagiri and Yeallapur villages. However, farmers have refused to sell their land for the project.

KIADB has issued final notification for acquisition of 4,500 acres land in Kuditini for ArcelorMittal’s six-million-tonne per annum (MTPA) steel plant. ArcelorMittal India Ltd has already deposited the first installment of Rs270 crore with the KIADB for land acquisition.

“Farmers are demanding up to Rs1 crore in some places. The state has discussed the issue with them. They are not against selling their land. But, they want a higher price. The government is ready to pay up to three times the local guidance value,” Murugesh R Nirani, minister for large and medium industries, said. He, however, clarified that Rs77 lakh per acre demanded by farmers in Bellary is not feasible and acceptable to the government.

Meanwhile, South Korean steel giant Posco has deposited an initial amount of Rs60 crore with the KIADB for land acquisition. The company has identified land in Gadag district for its proposed 6 MTPA steel plant.