Heat Over Farmer Compensation

metro india news  I hyderabad

Serious concerns are being raised over large-scale land acquisition for the Pharma City and the proposed Future City projects, with allegations that farmers are being paid far below market value while private companies stand to gain enormously. The issue has triggered questions about transparency, fairness, and adherence to land laws.

Before the 2023 elections, the then TPCC president Revanth Reddy had criticised the Pharma City initiative, pointing out that nearly 8,632 acres of assigned land distributed to Dalits during the Congress regime were taken back at just Rs. 8 lakh per acre, despite market values touching around Rs. 2 crore per acre. He alleged that the same lands were being transferred to private companies at nearly Rs. 2 crore per acre.

Over the years, governments have pursued aggressive land acquisition for large projects. Between 2016 and 2023, about 19,000 acres were targeted for Pharma City. Compensation was fixed at around Rs. 8 lakh per acre for assigned lands and Rs. 12 lakh per acre for patta lands, with more than 6,000 acres of assigned land acquired. After the change in government, the Pharma City project was expected to be scrapped. However, it continues in a different form under the “Future City” initiative. Under this, compensation for patta lands has been increased to over Rs. 35 lakh per acre, though critics argue this still falls far short of prevailing market rates.

The government is reportedly planning to acquire nearly 30,000 acres in total for the project, raising concerns about the scale of displacement and financial implications.

Wide Gap Between Acquisition and Sale Prices

A key point of contention is the sharp difference between acquisition costs and the price at which land is later allocated. Lands acquired from farmers at rates ranging between Rs. 8 lakh and Rs. 35 lakh per acre are being developed with infrastructure such as roads, electricity, drainage, and water supply.

After development, these lands are reportedly allotted to private corporate entities at prices of around Rs. 2 crore per acre. This represents a jump of nearly five to seven times compared to what farmers receive.

However, activists argue that even Rs. 2 crore per acre is lower than actual market value, especially when additional incentives such as subsidies and tax benefits are factored in.

Land prices in and around Hyderabad, particularly in Rangareddy district, are said to range between Rs. 2 crore and Rs. 5 crore per acre, depending on connectivity and location. In some cases, private companies are reportedly willing to pay between Rs. 5 crore and Rs. 10 crore per acre.

Under the 2013 Land Acquisition Act, compensation in rural areas should be up to four times the market value. Even if the base price is taken as Rs. 2 crore per acre, farmers would be entitled to nearly Rs. 8 crore per acre.

Critics argue that instead of following this law, the state is relying on amendments introduced in 2016, which allegedly reduce compensation and dilute farmer protections.

Allegations of Massive Financial Gains

Farmer groups and social activists allege that while farmers receive minimal compensation, private companies benefit from undervalued land along with infrastructure support, subsidies, and tax incentives.

They further claim that the overall transaction could generate gains of up to Rs. 1 lakh crore. With nearly 30,000 acres involved, even a price difference of Rs. 3 crore to Rs. 4 crore per acre between acquisition cost and actual market value could result in enormous financial flows.

There are also allegations that part of these gains could be diverted as kickbacks to influential figures, though no official confirmation exists.

Growing Discontent and Key Questions

Farmers have begun questioning the rationale behind such policies, asking why political leaders do not offer their own lands if the projects are indeed beneficial. The issue has intensified public debate over who truly benefits from large scale land acquisition.

In summary, critics argue that farmers are being paid between Rs. 8 lakh and Rs. 35 lakh per acre for lands that may be worth Rs. 2 crore to Rs. 5 crore or more, while private entities gain access to the same land at concessional rates and potentially reap far higher returns. The resulting disparity, they say, lies at the heart of the growing controversy.