BHUBANESWAR: The Assembly on Wednesday gave its nod to the amendment in the Odisha Land Reforms Act, 1960, meant to bring in greater uniformity and transparency in fixing fees for the conversion of agricultural land for non-agricultural purposes.
After the amendment of the Principal Act, the conversion fee will be one per cent of the market value of the land. Piloting the Bill, Revenue and Disaster Management Minister Sudam Marndi said section 8-A of the OLR Act prescribes different rates of conversion fees for the use of agricultural land for non-agriculture purposes on the basis of the location of the land.
For land located within municipal corporations, municipality areas or areas within one-half km on either side of the national highways, it prescribes the rate at Rs 3 lakh per acre. The minister said the conversion fee for land in any area within one-fourth km on either side of state highways is Rs 1 lakh per acre while in notified area council (NAC) or notified urban areas, the rate is Rs 75,000 per acre.
In areas covered by development plans, the rate is Rs 30,000 per acre, whereas it is five per cent of the market value in places not covered under the aforementioned areas. There is a lack of transparency on the matter among field functionaries, he added.
The Accountant General, Odisha in 2021 observed that in the periphery of urban areas and rural areas having semi-urban growth, people are paying more premium as compared to urban areas. In areas under development authorities, conversion charges are collected at a rate of Rs 30,000 per acre only. The rate for urban areas, fixed in 2006 is on the lower side, as compared to rural areas, the minister said.
“In order to maintain uniformity and transparency in fixing conversion fees, it is proposed to amend the sub-section-2 of section 8-A of OLR Act, 1960 by proposing one per cent of the market value as the fee for conversion of land from agriculture to non-agriculture purpose,” Marndi said.
Another Bill introduced by the minister on Tuesday to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLAR&R), 2013 was also passed in the House. The Bill proposes to do away with the practice of holding social impact assessments before land acquisition for certain categories of projects. As per the amended provision of the Act, consent for the acquisition of land for some listed projects will not be required except in scheduled areas.
Describing the amendment for the right to fair compensation as progressive legislation, the minister said it is targeted to expedite the process of land acquisition by exempting certain projects from social impact assessment studies and public purpose.