JSW, Gokaldas aid farmers at SEZ land
The government’s decision to shift the onus of land acquisitions for SEZs onto developers is making some of them come up with innovative ideas to compensate farmers who own the land.
By Sanjeev Choudhary, TNN |
NEW DELHI: The government’s decision to shift the onus of land acquisitions for SEZs onto developers is making some of them come up with innovative ideas to compensate farmers who own the land.
Gokaldas Exports — one of the biggest garment exporters of the country — which is developing a 400-acre textile and apparel SEZ near Bangalore, has offered to help farmers buy agricultural land elsewhere and act as advisor to them in investing part of their compensation in financial instruments. The company has also agreed to pay 30% more than the government rate for the land it plans to acquire.
JSW Steel, too, had recently offered jobs and equity shares in the company to farmers in a bid to acquire their land for its proposed steel plant in West Bengal. “We are not here to disrupt farmers’ lives. We would like to ensure that their source of livelihood is maintained,” says Gokaldas Exports executive director Rajendra J Hinduja.
Gokaldas will have a team to help farmers identify agricultural land according to their needs and negotiate a favourable price for it.
Gokaldas has suggested the farmers, whose land it wishes to acquire, to put half of their compensation amount in agriculture land and invest the rest in financial instruments. The company is also putting in place a team of financial advisors to help farmers make money through prudent investment. “We will explore best avenues of investments to ensure that farmers get a decent monthly income. It would mainly be low-risk instruments like liquid debt funds, government bonds, fixed deposits,” says Mr Hinduja. These advisors would guide farmers on the timing, quantum and choice of instruments for investment.
Mr Hinduja says farmers have responded positively to the offer. Nearly 30 of the 100 farmers the company has been talking to for acquisition of nearly 150 acres of land have agreed and preparing their letter of consent.
Farmers must submit the letter of consent to the government, following which the government would acquire the land at the agreed price and hand them over to the developer.
The Karnataka government has categorised land into three zones with A zone commanding the highest price and the C zone the least price. Gokaldas has offered to pay Rs 70-80 lakh per acre for the A zone plot and Rs 15-25 lakh for C zone, a 30% premium over the government rate. Fifty entrepreneurs are likely to set up shop in the proposed SEZ, which may see a total investment of Rs 2,000 crore and generate 50,000 jobs.
Gokaldas Exports — one of the biggest garment exporters of the country — which is developing a 400-acre textile and apparel SEZ near Bangalore, has offered to help farmers buy agricultural land elsewhere and act as advisor to them in investing part of their compensation in financial instruments. The company has also agreed to pay 30% more than the government rate for the land it plans to acquire.
JSW Steel, too, had recently offered jobs and equity shares in the company to farmers in a bid to acquire their land for its proposed steel plant in West Bengal. “We are not here to disrupt farmers’ lives. We would like to ensure that their source of livelihood is maintained,” says Gokaldas Exports executive director Rajendra J Hinduja.
Gokaldas will have a team to help farmers identify agricultural land according to their needs and negotiate a favourable price for it.
Gokaldas has suggested the farmers, whose land it wishes to acquire, to put half of their compensation amount in agriculture land and invest the rest in financial instruments. The company is also putting in place a team of financial advisors to help farmers make money through prudent investment. “We will explore best avenues of investments to ensure that farmers get a decent monthly income. It would mainly be low-risk instruments like liquid debt funds, government bonds, fixed deposits,” says Mr Hinduja. These advisors would guide farmers on the timing, quantum and choice of instruments for investment.
Mr Hinduja says farmers have responded positively to the offer. Nearly 30 of the 100 farmers the company has been talking to for acquisition of nearly 150 acres of land have agreed and preparing their letter of consent.
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Farmers must submit the letter of consent to the government, following which the government would acquire the land at the agreed price and hand them over to the developer.
The Karnataka government has categorised land into three zones with A zone commanding the highest price and the C zone the least price. Gokaldas has offered to pay Rs 70-80 lakh per acre for the A zone plot and Rs 15-25 lakh for C zone, a 30% premium over the government rate. Fifty entrepreneurs are likely to set up shop in the proposed SEZ, which may see a total investment of Rs 2,000 crore and generate 50,000 jobs.
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