CHENNAI: Tamil Nadu is planning to opt for land pooling, a more equitable scheme where landowners would become partners in the joint venture development. This is seen as a viable option after the State found it hard to acquire land after the new Act came into being four years ago.
Sources told the Express that the Town and Country Planning Department had already submitted to the Government the draft land pooling policy, which was modelled on the lines of similar schemes in Gujarat, Haryana and Andhra Pradesh.
From forcible acquisition of land, the procedure for sourcing land had become difficult after the new Act - Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Act (RFCTLARR), 2013 - came into force. This prompted the authorities to look for an alternative model.
Under the proposed scheme, the landowners would be paid a portion of the compensation sum upfront, while the remaining would be paid as developed plots or a share in the project.
Sharing the fruits of development with landowners would help get the consent from them, said officials, adding that this also reduced the burden on the State to mobilise funds for acquisition.
According to the draft, the land pooling modalities for industrial or urban development projects may differ from linear projects like highways, waterways, railways and irrigation canals. For the former, only a portion of the land will be needed for infrastructure, while the entire land gets used in the latter category.
For urban development and industrial purposes, 50 per cent of land cost as per compensation arrived under the new land acquisition act will be paid upfront, and the remaining half will be given as share in the project.
For big industrial projects or housing projects as a single entity, a share in the project may be offered in proportion to the compensation eligible under the new Act. This model could be executed by a trust or special purpose vehicle (SPV).