Assocham proposes equity for farmers

Equity participation by the farmers in the land acquired for special economic zones (SEZs) has been proposed by the Associated Chamber of Commerce and Industry (Assocham).

In a letter to Haryana Chief Minister Bhupinder Singh Hooda, the president of Assocham, VN Dhoot, said that in large-scale SEZs or industrial projects, 10-12 per cent of land in the developed project should be returned on a commensurate basis to farmers who had given their land for development. This would lead to an "all-inclusive" growth, he said.

It will be a major incentive for farmers to sell their land for such projects, and thereby facilitate land acquisition process, Dhoot said.

The secretary general of Assocham, DS Rawat, said the participation as equity holder would provide both financial as well as emotional security to the farmers who are attached to the land for generations.

The government of Haryana, in August 2007, had announced an annual royalty of Rs 10,000 per acre for 33 years to the farmers affected by the state industrial and housing department projects besides the usual compensation, applicable with retrospective effect from March 2005.

Also, 25 per cent reservation in government jobs for farmers and landless villagers dependent on land acquired for various projects had been announced by the state government.

The state has 51 approved (both in-principle and formally approved) SEZs and 91 proposed SEZs.

In the first week of January, the state government is likely to approve some more SEZ applications.