The Telangana government has been compelled to offer higher compensation to farmers for land acquisition due to soaring land prices in the Core Urban Region (CURE). Official sources revealed that a record Rs 1.24 crore per acre was paid to some farmers in Kongara Khurd and Kongara Kalan villages near the Outer Ring Road (ORR) in Rangareddy district. This move was essential to ensure a smooth land acquisition process for the greenfield expressway, which serves as a crucial link to Future City.
Market Rates and Compensation Details
A senior official from the Rangareddy district administration explained that the market rate in Kongara Kalan and Kongara Khurd ranges between Rs 8 crore and Rs 10 crore per acre. After negotiations, the government agreed to pay Rs 1.24 crore per acre, acquiring 15 acres in these areas. In other locations, compensation varied from Rs 30 lakh to Rs 98 lakh per acre, depending on the specific location. For comparison, the government typically pays around Rs 15 lakh per acre elsewhere.
Expressway Project Overview
The state government has proposed a 300-feet greenfield expressway from Raviryal ORR to Meerkhanpet and then to Amangal, executed in two phases at an estimated cost of Rs 4,600 crore. Phase I required 447 acres, while Phase II involves another 558 acres. The expressway passes through Maheshwaram, Ibrahimpatnam, Kandukur, Kadthal, and Amangal mandals. Of the total nearly 1,500 acres needed, about 300 acres are forest land and another 200 acres belong to the Telangana State Industrial Infrastructure Corporation (TGIIC).
Financial Implications
Officials indicated that the state government will spend approximately Rs 250 crore on cash compensation for the expressway. There is growing concern that higher compensation rates could set a precedent, leading other farmers to demand similar amounts. Nevertheless, the government aims to expedite land acquisition without legal hurdles.
Transferable Development Rights and Land Pooling
Last month, the state issued a Government Order (GO) on extending Transferable Development Rights (TDR) for acquiring properties in urban areas, including houses for the Musi riverfront development project, road widening, skyways, and other public purposes in three municipal corporations. TDRs are typically issued for urban land acquisition, not agricultural land. The financially strained government has instructed district authorities to negotiate with farmers whenever possible.
For assigned land, the government uses land pooling schemes, mainly for industrial purposes, offering developed plots in exchange. Recently, land acquisition units were established to accelerate acquisition for the Hyderabad Green Pharma City.
