It's not just land owners, who are getting higher compensation for giving their lands for highway development after the new land acquisition law kicked in. As many as 13 state treasuries are also making big gains thanks to the NHAI.
The states continue charging an administrative fee from NHAI, at times as high as 20%, even as the Centre's compensation outgo has gone up by three times. According to sources, Bihar and Kerala charge the maximum fee at 20% while states such as Uttar Pradesh and West Bengal charge 10%. Maharashtra charges 6%. States that don't charge any such fee include Rajasthan, Karnataka, Telangana and Tamil Nadu. The administrative charge is over and above the compensation that NHAI releases directly to the land owners.
To give an example, if Bihar was getting Rs 20 lakh as administrative charge for acquiring a land at Rs 1 crore under the old law, now it's getting Rs 50-60 lakh for the same land parcel as the rate of compensation has gone up to Rs 3 crore because of the new norms of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The law came into force from January 2014.
NHAI acquires about 8,000-9,000 hectares annually for highway expansion and it is the biggest land procurement agency. NHAI releases about Rs 20,000 crore as compensation to land owners.
Besides the highway authority, road ministry and it's subsidiary for undertaking works in north-east and Jammu and Kashmir, NHIDCL, also acquires land for highway construction.
Considering that the administrative charge has swelled because of a three-fold increase in compensation amount, NHAI is now talking to each state to rationalize the charges. Sources said in a recent meeting Bihar government representatives have consented to bring down the charges to 10%. "This issue has to be taken up with each state and this has started. States also have their issues and in most cases, the decision has been taken by the Cabinet. We are hopeful of finding a solution," said a government official. Land acquisition has been one of the focus areas of NHAI and road ministry since any expansion of the existing stretch requires additional land. Ministry sources said since the compensation rate has gone up because of the 2014 law, now there is less resistance from people. On an average, the overall pace of acquisition has increased by 40 per cent.
Source- ET Realty
The states continue charging an administrative fee from NHAI, at times as high as 20%, even as the Centre's compensation outgo has gone up by three times. According to sources, Bihar and Kerala charge the maximum fee at 20% while states such as Uttar Pradesh and West Bengal charge 10%. Maharashtra charges 6%. States that don't charge any such fee include Rajasthan, Karnataka, Telangana and Tamil Nadu. The administrative charge is over and above the compensation that NHAI releases directly to the land owners.
To give an example, if Bihar was getting Rs 20 lakh as administrative charge for acquiring a land at Rs 1 crore under the old law, now it's getting Rs 50-60 lakh for the same land parcel as the rate of compensation has gone up to Rs 3 crore because of the new norms of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The law came into force from January 2014.
NHAI acquires about 8,000-9,000 hectares annually for highway expansion and it is the biggest land procurement agency. NHAI releases about Rs 20,000 crore as compensation to land owners.
Besides the highway authority, road ministry and it's subsidiary for undertaking works in north-east and Jammu and Kashmir, NHIDCL, also acquires land for highway construction.
Considering that the administrative charge has swelled because of a three-fold increase in compensation amount, NHAI is now talking to each state to rationalize the charges. Sources said in a recent meeting Bihar government representatives have consented to bring down the charges to 10%. "This issue has to be taken up with each state and this has started. States also have their issues and in most cases, the decision has been taken by the Cabinet. We are hopeful of finding a solution," said a government official. Land acquisition has been one of the focus areas of NHAI and road ministry since any expansion of the existing stretch requires additional land. Ministry sources said since the compensation rate has gone up because of the 2014 law, now there is less resistance from people. On an average, the overall pace of acquisition has increased by 40 per cent.
Source- ET Realty
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