Land Assembly for Industrial Development - Land Pooling Scheme for Pithampur, Sector 7

Pithampur Investment Region / Indore District

• In the last decade, MPIDC faced difficulties in assembly of land especially after enactment of new Land Acquisition Law in 2013. Since large chunk of contagious Govt Land is not available, MPIDC could only take up scattered industrial development on Govt Land. 
• In the subject project (case) of Industrial Park of Pithampur, Sector 7, MPIDC, got all the private land notified for land acquisition in 2011 (old Land Acquisition Law of 1894). There was huge protest and confrontation against the land acquisition by the land owners. Enactment of new land acquisition law in 2013, further deteriorated the situation and delayed the land assembly.
• Land Owners were protesting due to poor compensation package, they were offered for losing all the rights in their land as well has their livelihood at one go.
• The confrontation/protest and resulting litigations lead, MPIDC requiring to device a new Land Assembly tool to ensure Win-win proposition for land owners and MPIDC resulting in speedy Land Assembly for much needed demand for supply of industrial land/plots

• The first initiative as solution was enactment of a new law by Govt of MP, namely the Madhya Pradesh Industrial Region Development and Management Act, 2013 (MPIRDM Act 2013). The MPIRDM Act 2013 under section 9, empowered MPIDC as designated Agency to acquire land required for Investment Region development by mutual Agreement with land owners. The MPIRDM Act 2013 under section 13, further empowered MPIDC as planning as well as Local Authority for the Investment Region.
• The MPIRDM Act 2013 paved the way for commencing the dialogue between MPIDC and the land owners of the subject project (case). To facilitate the dialogue with the affected land owners of subject project (case) Kisan Sangh of land owners was established.   
• MPIDC officials met the Kisan Sangh representatives and in discussions devised Land Pooling Scheme, where the land owners were offered developed Residential Plot as compensation, which is equivalent to or more than the compensation package guaranteed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. 
• After thorough deliberations and confidence building meetings with land owners, MPIDC formulated and approved the Madhya Pradesh Industrial Development Corporation Land Pooling Scheme - 2019.
• The Land Pooling Scheme, made the private land owners, partners in Industrial Development, where land owners were provided with immediate relief for loss of livelihood and where benefits of Industrial Development and resulting economic growth/development will be shared among the Land Owners, MPIDC, workforce and citizens

• The total compensation of Rs 679.98 Crs (as per new Land Acquisition Law) was divided as 20% in monetary terms (i.e. Rs 136.00 Crs) and remaining 80% (i.e. Rs 543.99 Crs) in the form of developed Residential Plots of 108.08 Ha (evaluated at the District Registrar Guide line rates for valuation of Residential Plots @ Rs 5000 per Sqm) which was profitable to land owners as market rates in the surrounding areas are higher than guideline rates of Rs 5000 per Sqm used to evaluate size of developed plots offered as 80% compensation
• A single Land Pooling Agreement was drafted in discussion with the land owners, MPIDC Head Office, District Administration and other stakeholders. 
• Exemptions were provided from levy of Stamp Duty and payment of Registration Fee for getting the Agreement registered under Registration Act, 1908 and Indian Stamp Act, 1899
• The Draft of Agreement was prepared with Terms and conditions agreed among the stakeholders, specifying land being surrendered by Private Land Owner to MPIDC for development, details of compensation package as 20% in monetary form and 80% in the form of developed residential plot etc. 
• Relevant amendments in the MPIRDM Act 2013, MPIRDM Rules 2016, were made to ratify the decisions taken in discussions with the land owners  and MPIDC formulated and approved the Madhya Pradesh Industrial Development Corporation Land Pooling Scheme - 2019.  
• After multiple stakeholders engagements the Final Solution for pooling the Land for Industrial Development was given a structured shape by giving statutory framework
• As per the Registered Land Pooling Agreement the private land owners will be collectively provided developed Residential Plots of 108.08 Ha within 3 Years from the date of Agreement. 
• The development of Smart Industrial Park, Sector 7, Pithampur is being implemented in brisk pace and the land owners will be delivered their compensation plot by the end of 2024. 

Following are the Steps taken to implement the selected solution:

• Govt of Madhya Pradesh notified and enacted new Law for Madhya Pradesh Investment Region Development and Management Act 2013. The Act gave legal status to the developed, under development and proposed Industrial Areas.
• Establishment of Pithampur, Sector 7, Kisan Sangh to mobilize private land owners.
• Deliberations and confidence building meetings with stakeholders
• Notification of Madhya Pradesh Investment Region Development and Management Rules 2016 under MPIRDM Act 2013. The rules further detailed out provisions of MPIRDM Act 2013.
• The Pithampur Investment Region, admeasuring 12,450.45 Hectare, covering 44 Villages of Indore and Dhar District, was declared as Scheme Area under Section 4(6) of MPIRDM Act 2013. 
• Approval and Publication of Madhya Pradesh Industrial Development Corporation Land Pooling Scheme - 2019. 
• MPIDC RO Indore was entrusted to prepare the Land Pooling Scheme for Sector, 7 Pithampur in consultation with Land Owners
• Publication of Intention to take up Land Pooling Scheme for Sector, 7 Pithampur
• Discussions with the land owners through Kisan Sangh including on-site Camps for deliberating Compensation Package
• Finalization of Layout of Compensation Plots
• Consent Letters were received from Land Owners 
• Registered Land Pooling Agreements were Signed with consenting Land Owners and payment of monetary compensation along with land pooling certificate mentioning area of developed residential plot in phases.
• Taking possession of private land from land owners
• Commencement of development of Smart Industrial Park, Sector 7, Pithampur
• Allotment of compensation Residential Plots in the favour of land owners. 

• First experience of using Land Pooling for Industrial Development - issues such as composition of compensation package, trust deficit of land owners, pursuing the un-consenting land owners, issues related to land records documentation, Land pooling Agreement modalities including stamp duty/registration fees etc had to be resolved 
• Gaining Confidence of the Land Owners - There were variety of land owners from 1-2 bigha land holdings to more than 50 bigha land holdings. and socio-economic status varied from highly educated to under privileged.  Thus each type of group of land owners were required to be pursued in a different manner to gain the confidence in the Land Pooling Scheme.     
• Consensus on composition of Compensation Package -   It was default compulsion for MPIDC to offer a compensation package which is at par or more than the compensation offered by the new Land Acquisition Law (2013). Offering a double the market value compensation entirely as monetary compensation was not beneficial for MPIDC due to huge upfront investment. Some land owners who are economically under privileged, wanted compensation in cash due to their immediate financial needs and livelihood loss. This made MPIDC to coarse correct initial proposal of offering only developed plot as compensation
• Statutory Hurdles -  MPIDC RO Indore (erstwhile MPAKVN Indore) did not have planning, enforcement, taxation land acquisition, or decision making powers and responsibilities which was a reason for lack of faith of stakeholders in the actions of MPIDC

• First experience of using Land Pooling for Industrial Development - at every initiative or decision taken in consultation with various stakeholders, the same was effectively ratified by amendments in the law and rules to make it implementable, as well as garner the Land owners faith in the Land Pooling Scheme. After all the amendments in statutes, a well crafted the Madhya Pradesh Industrial Development Corporation Land Pooling Scheme - 2019 was approved
• Gaining Confidence of the Land Owners -  The representatives of Kisan Sangh helped in engaging with the land owners and getting their consensus on the land pooling proposal and policy. They were informed that they are  partners in the Industrial Development, where 80% of the compensation package was their investment until delivery of the plots. Also, land owners were toured the surrounding world class industrial development of NATRIP developed by MPIDC on Govt land to show case the type of developed plots they will be offered. 
• Consensus on composition of Compensation Package - Kisan Sangh helped MPIDC in understanding needs of wide cross section of land owners community. Based on the understanding gained, the initial proposal of offering only developed plot as compensation was broken in to unanimously agreeable package of 20% monetary compensation and 80% compensation in the form of Developed Residential Plots
• Statutory Hurdles -The enactment of MPIRDM Act 2013, and rules there under empowered MPIDC as planning, development and local authority with powers and responsibilities of land acquisition in agreement with land owners, enforcement and taxation in the Investment Region Area.

• Win-Win proposition for both land owners and MPIDC - MPIDC gets the land assembled for Industrial development without any resistance and litigations. MPIDC is also not required to invest upfront on compensation package reducing funding issues, resulting in competitive disposal price of Industrial Plots to attract investment and economic growth. The land owners get more compensation package than offered by Land Acquisition Law (2013)
• Continuous engagement with Land Owners - Continuous engagement with the land owners has made the project case successful, which helped MPIDC take timely decisions in formulation of the land pooling policy
• Role of Kisan Sangh -  Kisan Sangh has played an important role in mobilization of the land owners community by helped MPIDC in getting consent of the land owners and helped under privileged land owners in making them understand their benefits in the scheme
• Role of MPIDC Executive and Technical Officers - Based on the information from stakeholders , they took timely initiative to coarse correct the solution so that the Land Pooling Scheme become successful
• Statutory Reforms - Empowerment of MPIDC as planning and local authority, incorporating land pooling in the statutory framework are some of the success factors for the project
• Livelihood of the Land Owners - 20% of the Compensation package in Monetary Terms was the most significant step to ensure land owners endorsement to the land pooling policy. That helped suffice immediate financial needs of the land owners due to livelihood loss and helped them use the same in keeping up their occupation by buying agriculture land in the surrounding areas

Short Terms Benefits - The project bring contagious planned industrial development around Pithampur Investment Region and will ensure world class industrial infrastructure. The project provides employment to construction workers in construction and development of the Smart Industrial Park.

Long Term Benefits:

• Attracting Investment in multi product industries resulting in economic growth
• generate direct employment in secondary (manufacturing) as well as tertiary sectors of employment such as Finance, Banking, Administration, Hotel, Tourism, Trade, Insurance, Communication etc
• The land owners have 80% of their compensation package invested in the Project in the form of developed residential plots. After the realization of expected investment in the Industries the value of the developed residential plots will see multifold appreciation, in turn increasing the compensation land owners get from the project.
• The development of project will unlock surrounding areas for industrial as well as urban development. The extension of infrastructure will indirectly support the Pithampur Investment Region surroundings 

• Addition of developed Industrial Land/plots - The project will provide 614 Ha of gross industrial area and supply 460 Ha of net industrial plotted area for multi-product manufacturing Sector. 
• Expected Investment -  The project will attract investment of about Rs 12,000 Crs in the multi-product manufacturing Sector. 
• Employment Generation - The 614 ha of gross industrial area will generate direct industrial employment of 31,000 Industrial Work force and remaining gross area (193 Ha) will provide employment of about 12,000 workers in tertiary sectors such as Finance, Banking, Administration, Hotel, Tourism, Trade, Insurance, Communication etc. Apart from this the construction cost of Rs 535 Crs to be spent across 3 years will generate employment of about 6000 Construction workers for three years.
• Compensation to Land Owners - The Land owners were offered compensation of 2 times the market value of land as per the new Land Acquisition Law (2013). 20% (i.e. Rs 136 Crs) of the same has been paid to them in monetary forms. Remaining 80% of compensation (i.e. Rs 544 Crs) in 108.8 Ha of Residential plots will fetch them more than Rs 1000 Crs after completion of the development works. Thus Land owners will effectively get about 3.5 times the market value of land as compensation.

• MP and India got a new tool to assemble Land for Industrial Development, this will encourage the industrial development corporations across India to assemble land for Industrial development in mutual agreement with the land owners
• The success will also encourage other private land owners in the state and across India to partner the state in industrial development.
• Inspired by the project success, MPIDC has taken up new schemes on same model for land assembly. These schemes are Economic Corridor on 1300 Ha, Industrial Growth Centers along Atal Progressway on total 2000 Ha, Industrial Growth Centers along Narmada Expressway etc.
• The Scheme structuring and the templates generated in process could be easily modified and used for other Industrial Development Projects in the State

• Govt of Madhya Pradesh in General and MPIDC in particular learned to formulate Land Assembly Policy with active participation of land owners. Land assembly for any type of development should be done through a consultative process.
• Once Land owners are made partners in the development they are eager to co-operate with the authorities in the just cause of development and economic growth 
• One of the learning from the implementation of solution was that the success of solution depends on how the Authority addresses land owners livelihood aspect. 
• MPIDC learnt that every aspect of the policy or initiative should be structured with statutory ratification and should be backed by the statutory framework.

• MIS Database was created for collation of Land Records
• GIS was used to prepare scheme base map and creating database