Kerala answer to land acquisition puzzle

For the central and state governments which are trying hard to solve the problem of land acquisition, Kerala may provide a solution.

The southernmost state of India is giving final touches to its land acquisition policy that is expected to take care of the perennial complaint of land losers — officially sponsored land grabbing at throwaway prices and passing it on to developers who enjoy exorbitant profits due to multifold appreciation of land value in the post-development phase.

What Kerala attempts to do is simple. It will not pay any money at the time of land acquisition. The people whose land gets acquired will instead receive a document similar to a blank cheque that can be encashed any time in the future.

The land losers will be issued a Transferable Development Bond (TDB) by the state government that can be sold on a premium or encashed any time they wish at the market price of the date of encashment.

“Sounds good? That’s what it’s meant for,” said Oommen Chandy, Chief Minister of Kerala. In an exclusive interview with Business Standard, he said the “land policy is nearing the final stage”. Explaining the rationale behind the policy, he said his government wanted to take the people in confidence before acquiring their land.

“Land availability is integral to any development, but at the same time, we should recognise that the people who give up their land, especially the ones who lose their homes are doing a great sacrifice. So we will go ahead only after taking care of their interests,” he said.

Contrary to the practice of forced acquisitions through government notifications, which got the Uttar Pradesh government in trouble recently, Kerala is planning to introduce a system of ‘payment first – acquisition later’. “We will acquire land at market rate and the person will be asked to leave his land or home after the entire compensation is handed over to him,” Chandy said.

However, it will be up to the land woner to decide on whether s/he should accept the market price fixed by the government at the time of acquisition or opt for TDB. The pro-people clauses in the policy do not end with the TDB. There will be in-built rehabilitation packages for people who lose their homes due to acquisitions.

“In addition to the financial compensation, the person will be provided four or five cents of alternative land with readily available water, electricity and road facilities.” said the CM.

The first beneficiaries of such projects will be those who have parted with their land. For instance, it could be employment for one member of a displaced family if it is a job oriented project.

In the case of a residential project, it could be preferential allotment of commercial space in shopping complexes that will come up within the project site.

The state government is even planning to relax state building laws to allow construction of such buildings near such projects to ensure livelihood opportunities for the displaced.