Acquisition of land: Farmers to get four times the market rate as compensation in rural Madhya Pradesh

The Cabinet's decision will enable farmers to receive higher compensation for agricultural land acquired by the Central and State governments for important infrastructure projects.
The move is expected to improve the livelihood of farmers.
The move is expected to improve the livelihood of farmers. Express
Updated on
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BHOPAL: Farmers in Madhya Pradesh will get four times the market rate as compensation for their land acquired by the state or central governments for development and infrastructure projects.

In a major decision, the state cabinet meeting chaired by CM Dr Mohan Yadav on Wednesday, doubled the multiplication factor for agricultural land acquisition to 2.0. Consequently, farmers will receive four times the market rate as compensation for acquired agricultural land.

While the decision will apply to the acquisition of agricultural land in rural areas across the state, the government has kept the compensation multiplication factor unchanged for urban limits.

The increase of the multiplication factor for rural areas from one to 2.0 under the "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2015" (Madhya Pradesh Land Acquisition, Rehabilitation and Resettlement Rules), will pave the way for farmers to receive compensation four times the market rate for their agricultural land.

“The decision will enable farmers to receive higher compensation for agricultural land acquired by the central and state governments for important projects such as irrigation projects, roads, bridges, railways, and dam construction. This will not only accelerate development projects but will also significantly improve the economic condition of the families who provide their land,” the state government said in its official statement.

Importantly, the cabinet’s decision was based on the recommendation by a sub-committee comprising ministers Tulsiram Silawat, Rakesh Singh and Chaitanya Kumar Kashyap. 

The sub-committee prepared this report after studying the policies of other states and discussing with various farmer organisations, including CREDAI, CII, and FICCI. This transparent and farmer-friendly government decision will directly benefit thousands of families in the state.

Importantly, land acquisition by the government for development projects has been facing opposition from farmers and their outfits, including the RSS-affiliated Bhartiya Kisan Sangh (BKS), particularly on the issue of adequate compensation to farmers.

At the Wednesday meeting, the state cabinet also approved Rs 33,985 crore for infrastructure construction and development works such as irrigation, health, education, and roads.  

A sum of Rs 5,479 crore was approved for providing advanced medical services in the state, upgrading medical colleges and establishing a new government medical college in tribal-dominated Mandla district under the Public Health and Medical Education Department.

Sum of Rs 3,628 crore was approved for the five-year continuous operation of the Chief Minister's Comprehensive and Advanced Tertiary Healthcare Institution Strengthening Scheme (CM CARE 2025), which will strengthen super-specialty healthcare services in government and autonomous medical colleges and the private sector, creating a strong hub for tertiary healthcare services, including the establishment of oncology (surgical, medical, and radiation), cardiology, cardiac surgery, and organ transplant units.

This will ensure improved quality and availability of services by leveraging government investment, as well as the expertise, latest technology, and capital investment of private partners.

In addition, Rs 1,503 crore has been approved for upgrading medical colleges. As per the approval, this scheme will expand medical facilities in medical colleges for the next five years.

In another important decision on the health sector, the cabinet approved establishing Family Rest Houses in medical colleges of the state.

These facilities, which will be set up through charitable organisations in the medical college campuses, will provide families/attendants of patients (admitted at medical college hospitals) with accommodation, food, and other essential services at the lowest possible rates.

The fees charged for rendering the services will be determined by a committee constituted by the government.

The move is expected to improve the livelihood of farmers.
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