Citizens’ Research Collective on SEZ

Radheshyam Jadhav

Pune, March 19, 2008: Farmers whose land has been acquired for the Bharat Forge multi-product special economic zone (SEZ) may no longer squander their wealth on luxurious and unnecessary items.

After disbursing the compensation package to the farmers, the Pune district collector and Maharashtra Industrial Development Corporation (MIDC) officials have taken it upon themselves to guide them on investment.

The SEZ is coming up in Khed and Shirur talukas of Pune district. The government had notified 7,192 hectares encompassing 17 villages for the same. The SEZ is promoted as a 74:26 joint venture between Bharat Forge and MIDC through a special purpose vehicle.

In Kendur, Kanersar, Nimgaon and Dhavadi villages, about 2,000 hectares of land has been acquired for SEZ. “In the first phase, we have distributed Rs 140 crore. Another Rs 70 crore will be distributed soon in these villages. This model is running smoothly in these villages and would be useful for others to follow,” district collector Prabhakar Deshmukh told TOI on Tuesday.

However, there is opposition from farmers in villages like Phu-tanwadi and they have been excluded from the first phase of the SEZ.

Deshmukh said that considering the past experience, where many farmers blew up the money buying luxury cars, bikes and other unnecessary items, the district administration and the MIDC are guiding them on safe and productive investment.

“When farmers get compensation for land, many banks and people with vested interests are after them. Many of the farmers get misguided and waste money. The MIDC has employed financial consultants and the district administration is in constant touch with farmers guiding them about the investments,” he said.

Deshmukh said the administration wanted to ensure that farmers utilise the compensation amount judiciously so that they don’t face financial problems in future. “We are keeping good options of investments before them so that they don’t spend their money in wasteful manner.” After the first phase, 13 more villages will be covered in the next two phases. Along with the compensation, farmers have been offered sops like guaranteed employment to one person from every project-affected family. Once land is developed, farmers could buy back 15 per cent of it and lease it out to a company, thus creating a permanent source of income.

The policy of buyback option for farmers up to 15 per cent of the developed land after paying the original cost of the land plus additional 50 per cent is leading to formation of farmers’ company in these villages.

“Farmers could come together and form their own company. This model of farmers’ company is taking shape and they will benefit in the long run,” Deshmukh said. As the administration has succeeded in giving special package to four villages, packages could be worked out for others on the same lines, he added.

Source: Times of India