Dinesh Kamath's news item 'CM and Dy CM to hold talks with PAPs over land acquisition issue' that was published in Newsband

CM and Dy CM to hold talks with PAPs over land acquisition issue

By Dinesh Kamath

NAVI MUMBAI: The Maharashtra government is bent on building an airport at Navi Mumbai. Chief Minister Prithviraj Chavan admitted that there had been a three times cost escalation in this regard.

The estimated cost of the project was Rs 4,766 crore. But it increased to Rs 14,573 crore, on account of land acquisition needs and various other cost escalations, he said. First phase of the project would entail expenditure of Rs 9,000 crore, he added.

As the airport was coming up on land covered by mangroves, the government would need to acquire land elsewhere to grow mangroves, he said. "Until 291 hectares of land is acquired, construction of airport cannot start," Chavan said.

“The cost was prepared in 2006-07 to cater to 40 lakh passengers annually, but the new planning is according to international standards and the airport will service 60 lakh passengers,” Chavan said, adding that the proposed capacity of the airport was another reason for cost escalation.

Out of the 1,160 hectares land required for aviation, 291 hectares of land is yet to be acquired. Typically, an international airport takes about seven years to get commissioned from the time of basic construction, while land acquisition could take at least two to three years.

Land acquisition has become a means for a multitude of middle-men to make a lot of money. Such delays are sure to have repercussions on the real estate market too. Developers have to wait for the airport authority to go ahead with the construction because buildings cannot go above certain heights in the restricted area. Secondly, unless the project is actually commissioned, neither the hospitality nor the real estate industry can flourish as there is no scope for habitations in these areas.

The increase in land acquisition cost is a major factor for the upward revision in the cost due to the rapid urbanisation of surrounding areas and the enhanced entitlement provisions in the Land Acquisition Act. The rehabilitation cost has surged following the increase in project-affected persons (PAPs) to 5,000 from 3,000 with better entitlements.

Prithviraj Chavan’s statement in the state legislature comes at a time when the stand-off between the government and PAPs continues on the issue of compensation for the acquisition of 291 hectares of private land. Chavan and his deputy, Ajit Pawar, will hold meetings with PAPs during the ongoing budget session of the state legislature to expedite the development process.

Bhaskar Jadhav, minister of state for urban development, said, "Most land owners have demanded 30% land which isn't possible. We are checking if a financial compensation package can be worked out or giving 22.5% land to the project-affected people can be a solution. No decision has been taken yet."

With general elections just over a year away, most parties have decided to support the agitation of project-affected people who are resisting land acquisition.