Punjab Tops India in Highway Land Compensation Despite Lower Acquisition Volume
According to official data presented by Union Minister Nitin Gadkari in the Rajya Sabha, Punjab has secured the highest average compensation rates for landowners in national highway projects over the past five years, even though it ranks fourth in total land area acquired among key states. The data highlights a significant disparity in compensation practices across India's major highway development initiatives.
Compensation Rates: Punjab Outpaces Other States
Landowners in Punjab received an average of over Rs 3.76 crore per hectare (equivalent to Rs 1.5 crore per acre), making it the top-paying state in the country. In comparison, Uttar Pradesh provided Rs 2.90 crore per hectare (Rs 1.16 crore per acre), while Karnataka averaged Rs 1.75 crore per hectare (Rs 70 lakh per acre). Madhya Pradesh recorded the lowest average at Rs 71.51 lakh per hectare (Rs 28.60 lakh per acre), illustrating a wide gap in compensation strategies.
Land Acquisition and Total Payouts: A Detailed Breakdown
The data reveals that Uttar Pradesh led in land acquisition with 7,098.43 hectares acquired, receiving a total compensation of Rs 20,624.76 crore. Madhya Pradesh followed with 6,634.87 hectares for Rs 11,043.94 crore, and Karnataka saw 6,292.26 hectares for Rs 4,745.10 crore. Despite acquiring the least land among these states at 5,483.34 hectares, Punjab disbursed the highest total payout of Rs 20,664.03 crore, underscoring its premium compensation approach.
Challenges and Delays in Highway Projects
However, the acquisition process in Punjab has faced significant obstacles, including widespread farmer protests that have stalled several projects. Nationally, 85 national highway projects are delayed by more than three years. The Ministry of Road Transport and Highways attributes these delays to multiple factors:
- Disputes over land ownership and discrepancies in revenue records.
- Reluctance from beneficiaries to accept payments due to disagreements over rates.
- Technical bottlenecks such as utility shifting and encroachment removal.
- External factors including the Covid-19 pandemic and changes in legislation.
Fiscal Year Compensation Trends in Punjab
An analysis of Punjab's compensation payouts over recent fiscal years shows a declining trend, reflecting the ongoing challenges:
- 2021-22: Rs 6,245.97 crore
- 2022-23: Rs 6,456.93 crore
- 2023-24: Rs 4,832.48 crore
- 2024-25: Rs 2,359.25 crore
- 2025-26 (up to February): Rs 769.40 crore
This data indicates a reduction in compensation disbursements, potentially linked to the procedural hurdles and protests affecting project timelines.
The findings underscore a complex landscape where Punjab's high compensation rates contrast with its lower land acquisition volume and operational delays, highlighting the need for balanced policies in India's infrastructure development.
