A day after the Uttar Pradesh government announced a new land acquisition policy that puts the onus on private developers and keeps the state out, the government announced further modifications to clear ambiguities.

The state has decided that in case there is a land acquisition programme by the government?s development agencies (for example, around cities) land-losing farmers will get a residential plot of 40 sq m each. This was decided after consultations with farmers that ran late into late Wednesday evening. Farmers were concerned that while those losing land to private developers would get one job in the family, there was no such margin of safety in the case of acquisition by the government.

In another key change, developers will have to take 80% of land-losing farmers along ? instead of the earlier 70% ? to acquire land.

The policy establishes without doubt that the final say in matters of land will remain with the farmers. Not only has the farmer been empowered to seek a better price for his land through negotiations, he has also been given a choice to decide how he wishes to accept compensation ? through cash or in the form of 16% of the developed land, depending on his needs and his holding capacity.

He can also have the compensation tailored to his needs if he wishes. It could be part-land and part-cash and the quantum of the break-up between the two could be fully his prerogative.

Also, by giving the option to choose 16% of developed land as compensation, the government has given them the right to be 1/3rd partner in the fruits of development. With almost 52% of the land usually going in the construction of roads and green belt, the remaining 48% has been divided between the entrepreneur and the farmers on a 1:3 ratio, keeping in mind the fact that the developer is taking considerable risk for the project and thus should get a majority in the profits too.

During the brainstorming with various stakeholders, there were suggestions for giving farmers 20% or 25% share of the developed land, before the 1:3 formula was finally hit upon. It was thought to be perfect as it would be acceptable to the farmers and the industry would not feel stifled with the burden of risks either. Start with a clean slate: The date on which the policy would come into force was also heavily debated before deciding that it should be with prospective effect. While there were suggestions to cover the current areas of disputes to tackle farmers? protests, there was a strong view that in case that idea was followed, it would leave the door ajar for more future protests as there can never be a unanimously identifiable cut-off date which would please all. Incentives for remaining land owners: The policy states that while acquiring land from farmers is necessary for development, the government does not want farmers to turn landless. In order to incentivise farmers to remain land owners, the policy provides for exemption in stamp duty and registration fee for any agricultural land that the farmers buy with the compensation money with one year. They would, in fact, not be charged under these two heads if they opt to take 16% share of the developed land as part of compensation. Compensation and R&R merged into one policy: The boundary between livelihood package or annuity on one hand and compensation on the other was found to be artificial. Disputing such a subordinate status for R&R, the policy decided to bring the two on equal footing by merging the two into one. No profit from profit-less infrastructure: As land acquisition for core infrastructure such as canals and roads does not earn revenue, farmers who will be displaced for such projects too will not benefit from the 16% profit clause, which would be given for projects that would be taken up on PPP or through the private sector. ?In case of projects where profit exists, it would be shared. But in places where there is no revenue earned, it cannot be shared with landowners,? explained an official. Democracy prevails in reversal of Pareto?s Principle: Turning Pareto?s 80:20 rule on its head, it was argued that it can very well be that instead of 20% of the farmers owning 80% of the land, it could well be that 80% of the farmers may hold just 20% of land on which a project is proposed to come up, while the rest 80% of the land may be held by 20% of the farmers. In case where 80% farmers with just 20% land agree to a project, the rest 20% would be acquired by the state with its sovereign power, thereby coming to the aid of the industry in case it is not able to acquire the entire land. Not being conservative: At the risk of being dubbed as an unhealthy competition, the policy provides for an increase in the annuity amount from Rs 20,000/acre to Rs 23,000/acre for 33 years with a hike of Rs 800 every year. This has been done after the Haryana government tried to better UP?s R&R package by announcing Rs 21,000/acre annuity and Rs 700 hike every year for 33 years. CSR mantra: Though CSR cannot be a legal obligation, the policy has made it part of the package. So, developers will have to build model schools and a kisan bhavan in the project area. This aims to bridge the gap in community service centres in villages. ?The idea is to have the developers to build the basic infrastructure for these facilities at least. It is an attempt to balance the aspirations of the people of the area with practicality,? said an official.