BMIC project: draft legislation moots exclusive land bank

BMIC project: draft legislation moots exclusive land bank

The Hindu

Bank will auction excess land acquired for project

# At least Rs. 10,000 crore is expected to the Government from the auction of excess land
# Money obtained from the auction to be used for implementing the projects
# The draft legislation proposes to exclude some lands from the auction

Bangalore: The draft legislation proposing to take over the Bangalore-Mysore Infrastructure Corridor (BMIC) project suggests the setting up of an exclusive land bank to auction all excess land acquired for the project.

The draft legislation says the Government expects at least Rs. 10,000 crore from the auction of all the excess land since the Karnataka Industrial Areas Development Board (KIADB) Act does not provide for reconveying land that has been acquired.

It is to get over this problem that the Government has proposed the setting up of a land bank.

All the excess land will be auctioned in public through the bank and the money obtained from it utilised for implementing the BMIC project.

Once this money is obtained, the Government feels that there will be no need for finance from either the Union Government or the World Bank for the project.

Some land excluded

The draft legislation proposes to exclude burial grounds, "gomal" lands, "kere katte," grant land and land belonging to Dalits from the auction. If there is any excess money apart from that spent on the project, the State plans to utilise it for the development of infrastructure in Bangalore and also to waive farmers' loans.

In case any land which is auctioned fetches five times more money than the one paid as compensation to the landowner from whom the land has been acquired, the landholder would have a share of the increased amount.

No fencing

The draft legislation also proposed to keep the road open to the public. The road would not have any fencing as is envisaged by Nandi Infrastructure Corridor Enterprise (NICE).

However, private vehicles would have to pay a toll, but Government vehicles and two wheelers are likely to be exempted. The draft legislation envisages a total takeover of the project by the State Government.

Judgments

Sources revealed that a close reading of the judgments passed on the project indicates that the project ought to be implemented in letter and spirit as per the original Frame Work Agreement (FWA). The Government feels that it would be better to take over the project since the excess land need not be handed over to NICE.

Contractual matters

Moreover, both the Supreme Court as well as the High Court had stated that it could not get into contractual matters in a public interest litigation.

Sources also revealed that in case of a breach of contract, the matter would be adjudicated through arbitration.