Rajasthan’s Innovative Land Aggregation Law: A Game Changer for Industry and Farmers

Rajasthan is set to make history as the first state in India to introduce a legal mechanism for land aggregation, aimed at benefitting both industries and farmers. Chief Minister BhajanLal Sharma announced this development as part of preparations for the upcoming ‘Rising Rajasthan’ Global Investment Summit, scheduled for December 2024. This groundbreaking initiative seeks to streamline land acquisition for industries while offering significant benefits to landowners, particularly farmers.

The new policy, to be introduced through a Bill in the State Assembly, is designed to encourage landowners to participate in the development process. It aims to make land acquisition more efficient and equitable by ensuring that landowners are compensated with a share of the developed land, thus offering them long-term benefits.

Why the Law is Needed

The Rajasthan government has been focusing on transforming investment intentions into actual projects. During recent roadshows in Mumbai and Delhi, the state secured MoUs worth ₹12.50 lakh crore in investments. However, the success of these projects depends heavily on the availability of land. To facilitate this, the state has come up with a policy for ‘Aggregation of Private Land’ under the new legislation.

This policy ensures that private landowners are not just compensated financially, but also become partners in the development. The government will aggregate land from willing landowners, develop it, and return at least 25% of the developed land to the original owners. This will allow the landowners to either use, lease, or sell their portion for higher returns, thereby benefiting both industries and individuals.

The Proposed Legislation

The proposed law is designed not only to make land acquisition easier but also to provide farmers with a stake in the economic development of their land. Once the land is developed, the original owner will receive a portion of the developed land, which increases in value due to the development. This arrangement allows landowners to continue their livelihood activities on the same land, while also benefiting from the rise in its value.

Officials highlight that the law will boost the income of landowners, as both the developed land and the portion they retain will increase in value. This is particularly significant for farmers, who will not only maintain control over their land but also see a rise in its worth.

How the Law Works

The proposed legislation will cover private land required for industrial parks, public infrastructure, and trunk infrastructure. The aggregation of land will be overseen by a newly established ‘Land Aggregation and Development Authority,’ which will be responsible for developing the land within a fixed timeframe. If the land is not developed within five years, it will revert to the Authority.

To address any concerns or grievances landowners may have, an Appellate Authority will be formed to handle disputes outside of the court system. If landowners are unwilling to participate in the aggregation process, they can retain their land without any penalties.

Regional Benefits

The law is expected to bring significant benefits to underdeveloped areas of Rajasthan, particularly districts like Banswara, which has a large tribal population. The region, located near the Gujarat border, could see substantial development as a result of this legislation. Additionally, areas along the Delhi-Mumbai Industrial Corridor and the Delhi-Mumbai Expressway are also expected to benefit from increased investment and development.

Conclusion

Rajasthan’s innovative land aggregation policy is a bold step towards industrial development while ensuring that landowners, especially farmers, are active participants in the process. By offering a share of the developed land as compensation, the government ensures that farmers benefit from rising land values and increased economic opportunities. As the state prepares for the ‘Rising Rajasthan’ Global Investment Summit, this new legislation could pave the way for significant industrial growth while protecting the interests of local landowners.