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LATEST NEWS UPDATES | Farmers ready to part with land by Anil Kumar M

Farmers ready to part with land by Anil Kumar M

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published Published on Oct 25, 2010   modified Modified on Oct 25, 2010

Karnataka's political classes might be striking deals and engaging in a war of words, but this has in no way affected the smooth progress of work for some of the multi-billion dollar industrial projects in the state.

ArcelorMittal, the world's largest steel producer, which plans to set up a 6-million tonne per annum plant in Bellary district with an estimated investment of Rs 30,000 crore, is now seeing farmers come forward to accept compensation for their land, to be acquired for the project.

Initially, certain farmer groups in Bellary had opposed the steel giant's plans as they were seeking compensation higher than what was fixed by the state government. ArcelorMittal would be requiring around 4,000 acres for its steel plant and the government has fixed land compensation rates in three slabs -- Rs 8 lakh, Rs 12 lakh and Rs 16 lakh per acre.

According to large and medium industries minister Murugesh R Nirani, farmers have started accepting the compensation amount and he expects this number to rise substantially in the coming weeks. Giving other sops to the farming community, the minister said that priority of jobs in the ArcelorMittal steel plant would be given to those farmers who come forward to accept the compensation amount. "The new development land compensation policy by the government will add a great deal for the land losers,'' Nirani told The Times of India.

READY AND RARING

ArcelorMittal is the first to get off the block in setting up its steel plant in Karnataka, being among the many who signed agreements with the government during the Global Investors' Meet (GIM) in June 2010. At GIM, Karnataka received investment proposals worth Rs 4 lakh crore from diverse industries and sectors.

Chief minister B S Yeddyurappa has already formed a cabinet sub-committee to dole out incentives for proposals signed during GIM. Further, there is also another committee headed by chief secretary S V Ranganath, monitoring all the investment proposals on a monthly basis.

Nirani said the industries department also formed a separate team to monitor the progress of the investment proposals. "Earlier, it was industries who were asking us about the progress of their investment proposals but now it is the other way round,'' he remarked.

STEEL FIRMS PAY UP FOR LAND

During the GIM, it was the iron and steel sector which attracted the highest attention with investment proposals worth Rs 2 lakh crore, which included companies such as Posco, Bhushan Steel and Essar. The state government has earmarked the districts of Bellary, Raichur, Koppal, Bagalkot, Gadag and Haveri as the proposed steel zone.

Most of these companies have already deposited huge sums of money with the Karnataka Industrial Areas Development Board (KIADB) for acquisition of land. Posco has deposited Rs 60 crore and sought 2,500 acres in Koppal district. Essar Steel has deposited Rs 25 crore to acquire 1,500 acres in Gadag district for its 6 mtpa plant. Besides these steel majors, the others who have also deposited the money towards land acquisition include Brahmani Steel, seeking 5,000 acres in Bellary district, as well as Bhushan Steel for 4,000 acres in the same district. Surya Vijayanagar Steel has sought 500 acres in Bagalkot district.


The Times of India, 25 October, 2010, http://timesofindia.indiatimes.com/city/bangalore/Farmers-ready-to-part-with-land/articleshow/6805821.cms


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