For this, the government has decided to implement a multiplication factor of 2 under the Madhya Pradesh Land Acquisition Act, 2013 (amended in 2015). This decision will apply to the acquisition of agricultural land in rural areas across the state. The Cabinet has kept the compensation assessment in urban areas unchanged.
Chief Minister Mohan Yadav said at a press conference, “This is a historic decision. With this, farmers will receive four times the guideline rates for their land. In simple terms, it means raising the factor from 1 to 2. This will serve as the baseline for all major projects.”
He added that this demand had been raised for a long time, and earlier various packages had to be given to meet it. Now, there will be a direct increase in compensation. He noted that the state is witnessing annual capital investment of ₹70,000–75,000 crore, which requires significant land acquisition. This decision will ensure farmers get fair value for their land.
The chief minister further stated that once the gazette notification is issued, the order will apply to all land acquisition cases. With this decision, farmers will receive higher compensation for agricultural land acquired by the Centre and state governments for irrigation projects, roads, bridges, railways, and dam construction. “This will not only accelerate development works but also substantially improve the economic condition of farming families who give up their land,” Yadav said.
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