Mohan Yadav-led BJP government on Thursday approved a decision to increase compensation for farmers whose land is acquired for development projects.(Photo: ITG)

Madhya Pradesh farmers to get fourfold compensation for land acquisition

Officials said the move is aimed at addressing farmer concerns and making land acquisition more equitable. The government believes that higher compensation will reduce resistance from farmers and make the acquisition process smoother.

by · India Today

In Short

  • The Cabinet approved revised rules under the 2015 land acquisition Act
  • A factor-based system replaces earlier norms that offered double market value
  • Officials said the move addresses long-standing concerns raised by farmers' organisations

The Madhya Pradesh Cabinet, chaired by Chief Minister Mohan Yadav, on Thursday approved a major decision to increase compensation for farmers whose land is acquired for development projects. The decision was taken during a Cabinet meeting held at the state secretariat, following long-standing demands from farmers and agricultural organisations. Under the revised policy, compensation for land acquired in rural areas will be increased up to four times the market value.

The Cabinet approved provisions for re-determination under the Land Acquisition Act, 2015 and decided to implement a factor-based system, raising the compensation multiplier. While earlier rules provided farmers with double the land value, the new decision enhances the compensation factor to ensure significantly higher payouts.

Officials said the move is aimed at addressing farmer concerns and making land acquisition more equitable. The government believes that higher compensation will reduce resistance from farmers and make the acquisition process smoother.

According to the new framework, farmers in rural areas will now receive up to four times the value of their land when it is acquired for public projects. The government expects that this will not only benefit landowners but also accelerate infrastructure and development initiatives across the state.

The administration noted that delays in land acquisition have often slowed down key projects. With improved compensation, authorities hope farmers will be more willing to part with their land, helping ensure timely completion of roads, industrial projects, and other public infrastructure.

The decision is being seen as a significant step toward balancing development needs with farmers’ interests, while also addressing long-standing grievances over compensation norms.

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