Hyderabad: The row over Mallannasagar land acquisition has cast a shadow on two ambitious projects of the TS government —National Investment and Manufacturing Zone in Medak and Pharma City project in Mucherla on the city outskirts. Land acquisition for both these projects came to a halt as state government continues with its flip-flop over how to compensate the oustees — as per the Centre’s Land Acquisition Act, 2013 or its own land acquisition policy (GO 123).
The government needs to acquire 12,636 acres for NIMZ and 12,500 acres for Pharma City. Of this 6,000 acres for NIMZ and 6,500 acres for Pharma City have already been acquired under GO 123. However, protests against GO 123 are gathering momentum as project oustees demand compensation as per market value and not as per land registration value, which is lower and has not been revised since 2013.
In Medak alone, the government needs to acquire about 60,000 acres for three projects— Mallannasagar, NIMZ and increase of the height of Ghanapur dam. For Mallannasagar, 20,079 acres needs to be acquired, due to which 14 villages will face submergence. For NIMZ, Medak, 12,636 acres spread over 17 villages needs to be acquired.
For Ghanapur project, another 400 acres are required to raise the height of the dam by six feet. However, industry minister K.T. Rama Rao sees a conspiracy by vested interests to block NIMZ and Pharma City projects, the two mega industrial projects of the new state. “These two projects have the potential to create lakhs of jobs and transform several remote villages in Medak and RR districts as industrial and economic hubs. No project can be taken up without acquiring lands,” he said.
Mr Rama Rao added, “Opposition playing politics to block these projects can be understood. Unfortunately, some farmers are getting misled and falling in their trap. Farmers, villages and the state as a whole will be at a loss if these projects are scuttled.” He reiterated that the compensation being offered by TS government was more than what was offered under the Centre's Act.
“The present market rate in several villages in Medak is nearly Rs 18 lakh per acre. But the government is offering only up to '6 lakh. Though houses and jobs are being promised, they are not putting them on paper. How can we believe them,” said B. Nagaiah of Mamidi village.
It’s viability vs compensation
The TS government is sceptical over the viability of these projects, if compensation is paid as per the market value, as demanded by farmers and landowners. If this demand is met, the government would have to pay Rs 18 lakh per acre. It is offering up to Rs 6 lakh per acre at present. Industry officials opine the higher land acquisition costs would make these projects unviable as the government wouldn’t even be able to recover the investments on these projects even after 30 years.
With the Centre granting NIMZ status to both these projects, the government is in a hurry to complete land acquisition to claim benefits but the process came to a grinding halt with developments at Mallannasagar. The oustees of Pharma City project are dismissing the claims of state government that it is offering more compensation than the Centre's Act permitted.
“In fact, the farmers will lose nearly Rs 300 crore on account of Pharma City. The land registration value is already Rs 7.50 lakh per acre. If the Centre’s Act is implemented, the government will have to pay compensation three times this value. Farmers will get at least Rs 22 lakh per acre, but the state government is offering Rs 12.50 lakh per acre. The market value of land in and around Mucheral is between Rs 15 lakh to Rs 25 lakh per acre,” said B. Venkat, convener Telangana Land Oustees State Committee.
The committee is fighting for the farmers in Mucherla, demanding higher compensation. Officials say if government ends up paying over Rs 20 lakh per acre as compensation, the acquisition expenditure alone would increase manifold; to several thousands of crores of rupees. Besides, it needs to spend thousands of crores of rupees to develop infrastructure facilities for allotment to industries, which would make these projects financially unviable.
The government is now trying to convince farmers that the land acquisition should not be viewed merely as how much compensation they will get. Farmers are being told to look at the overall development of their villages, economic activity and jobs these projects would generate once completed.
