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DLF Township Plan Runs Into Payout Storm, Farmers Affected By DLF's Unattractive Packages


By smith, Section Kolkata Real Estate
Posted on Fri Sep 12, 2008 at 12:41:19 AM EST

The Bengal government may be forced to rework the compensation package offered to Singur farmers, but only 20 km away at Dankuni, it's a different story altogether.

Farmers affected by DLF's township project have been offered unattractive packages, which is proving to be a hurdle in the path of the project.

The state government is charging DLF Rs 56 lakh per acre for the Rs 33,000 crore township project. But to the farmers, it has decided to pay a paltry sum of Rs 7 lakh per acre for fallow land, Rs 12 lakh per acre for multi-crop land and Rs 14 lakh per acre for homesteads. Where's the difference going? The government is pocketing it as "development charge".

DLF entered into an agreement with KMDA to build the new township, which, when completed, would become the country's largest public private partnership project. DLF has also assured one job to every displaced family. It bagged the project in February 2007. But till now, the government has got consent to acquire only 20 acres.

Now, DLF is getting restless, as the delay will affect the project's viability. It is putting more pressure on the government to complete taking over the land.

Experts feel that like other projects in Bengal, DLF's township plans are getting delayed because of the state government's policy of acquiring land instead of allowing companies to enter the fray. If the government allows developers to directly approach farmers, land can be taken over smoothly, a senior builder said.

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`A source said DLF could pay around Rs 40 lakh per acre directly to the farmers. The company would develop drainage and other infrastructure with the rest of the amount. By any standards, Rs 40 lakh per acre and a job per displaced family was an attractive compensation, the source added.

As the project is huge, the development cost wouldn't be very high. This would allow the developer to pass on a substantial amount to farmers.

Farmers in Dankuni are resisting the government's move to take over land at less than one-fourth of the cost that the company is offering. Trinamool Congress has already started mobilizing local farmers against the government's effort.

Urban development minister Asok Bhattacharya justified this. "Kolkata Metropolitan Development Authority (KMDA) is preparing the infrastructure, including drainage and water supply. We also want to develop the area," he said. Bhattacharya argued that most land in the area does not belong to farmers, but to "syndicates", who are groups of real estate developers or touts. He admitted potential landlosers aren't happy with the rates. "We will review the rates, which can be increased," he added.

Bhattacharya said options of the company directly purchasing land, procurement or acquisition are all open. "We are facing difficulty and trying to sort things out. The options are being reviewed," he said.

But the law says that if a private company takes over such a huge area, which is over the land ceiling, it must take permission from the state government. Since acquisition turned out to be difficult, the state government had decided to go for "procurement" of land.

DLF, meanwhile, is insisting on starting work only after the entire land is taken over as it does not want a repeat of Singur.

source: Times News Network 12/Sep/2008

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