Lok Sabha Question No. 279 (STARRED), answered on 2017-08-03
Subject: Administrative Costs for Land Acquisition
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: GOKARAJU GANGA RAJU

be pleased to state:

- (a) whether it is a fact that levying of administrative charges by the States for acquiring land for building or  widening  National  Highways  has  become  a  major  cause  of  concern  for  the  National  Highways Authority of India (NHAI) ever since the new rates for compensation have come into effect and if so, the details thereof;
- (b) whether it is also true that the Public Investments Board (PIB) had recommended that States may be requested not to levy  any  administrative costs for land acquisition or charge actual expenditure or not exceeding 2.5 per cent of compensation;
- (c) if so, the details thereof; and
- (d) the quantum of compensation released by NHAI during each of the last three years, State-wise?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(SHRI NITIN JAIRAM GADKARI)

- (a) to (d) A statement is laid on the Table of the House.

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA

## STARRED QUESTION NO. 279 ANSWERED ON 03 RD  AUGUST, 2017

## ADMINISTRATIVE COSTS FOR LAND ACQUISITION

*279.   DR. GOKARAJU GANGA RAJU:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

## सड़क परिवहन औि िाजमार्ग मंत्री

STATEMENT REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA  STARRED QUESTION  NO.  279  ANSWERED  ON  03.08.2017  ASKED  BY  DR.  GOKARAJU  GANGA  RAJU REGARDING ADMINISTRATIVE COSTS FOR LAND ACQUISITION

- (a) Yes,  Madam.  12  States  levy  a  percentage  of  compensation  as  administrative  charges  for acquisition of land for the National Highways. Haryana, however, has prescribed a fixed charge of Rs. 1.00 Lakh per acre for the purpose.  Introduction of provisions of the Right to Fair Compensation and Transparency  in  Land  Acquisition,  Rehabilitation  and  Resettlement  (RFCTLARR)  Act,  2013,  for determination  of  compensation  for  land  has  resulted  in  3  to  4  times  increase  in  expenditure  on compensation. Since, these  12  States  levy  a  percentage  of  compensation  as  administrative  charges  for acquiring land, this increase in expenditure on compensation has also resulted in increase in expenditure on administrative charges levied by State Governments for acquiring land.
- (b) Yes, Madam.
- (c) The details of States levying administrative charges as a percentage of the compensation amount are given in Annexure-I. The matter has been taken up by the NHAI and the MoRTH with these States requesting for rationalization of these administrative charges. While  appraising the proposal of Bharatmala Pariyojana Phase-I, the PIB has also recommended that 'State Governments will be requested not to levy any such administrative costs for land acquisition or charge the actual expenditure incurred in the process or, in the alternative, an amount not exceeding 2.5% of the compensation amount. Similarly, State Governments will be requested that supervision charges for utility shifting should also be capped at 2.5% of the approved estimates'.
- (d) State wise compensation deposited by NHAI with Competent Authority for Land Acquisition for the last three years is enclosed as Annexure-II .

ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA STARRED QUESTION NO. 279  ANSWERED  ON  03.08.2017  ASKED  BY  DR.  GOKARAJU  GANGA  RAJU  REGARDING ADMINISTRATIVE COSTS FOR LAND ACQUISITION

Details  of  Administrative  Costs/Charges  levied  by  the  States  on  acquisition  of  land  for  the  National Highways:-

1. The States of J&K, Punjab, Rajasthan, Karnataka, Andhra Pradesh, Telengana and Tamil Nadu are not levying any administrative costs/charges for acquisition of land for the NHAI projects. In case of Haryana also, the rates are very reasonable and the state has never insisted on payment of the same.
2. Following 13 states are levying the administrative charges on acquisition of land for the National Highways:

|   Sr. No. | State            | Admin. Charges (AC)                                                                                                                      | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------|------------------|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Bihar            | 20.5% of the Compensation Amount (20% + 0.50% contingencies)                                                                             | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         2 | Uttar Pradesh    | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         3 | Assam            | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         4 | Gujarat          | 10% (for valuation amount above Rs.10 Lakh)                                                                                              | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         5 | West Bengal      | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         6 | Kerala           | 20% on cost of land or 50% of the total establishment charges of the regular LA Unit, whichever is less (as per order dated 14.06.1999). | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         7 | Haryana          | Rs. 1.00 lakh per acre as per clause 19 (ii) of Government of Haryana Government Notification dated 09.11.2010.                          | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         8 | Himachal Pradesh | 9% (7% towards establishment charges +2% contingencies) of Compensation Amount to be paid to the State Government.                       | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|         9 | Chhattisgarh     | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|        10 | Jharkhand        | 6% to 21% of the Compensation Amount (5% to 20% Establishment Charges + 1% AC)                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|        11 | Madhya Pradesh   | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|        12 | Maharashtra      | 6% (3% AC to be deposited with Sate Govt. + 3% (to be deposited in PLA) for facilities to the office of LAO                              | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |
|        13 | Uttarakhand      | 10% of the Compensation Amount                                                                                                           | (i) Not all States are charging Administrative Costs (AC) at present. As per section 3(i) of RFCTLARR Act, 2013, AC is included in the cost of acquisition and such AC is to be specified by the appropriate Govt. (ii) As may be seen, different State Government are charging different ACs which do not appear to be based on any norm. Land acquisition expenses, on an average, have tripled as compared to pre-January, 2015 acquisition however, administrative charges being levied by the State Government have not been rationalized. |

ANNEXURE REFERRED TO IN REPLY TO PART (d) OF LOK SABHA STARRED QUESTION NO. 279  ANSWERED  ON  03.08.2017  ASKED  BY  DR.  GOKARAJU  GANGA  RAJU  REGARDING ADMINISTRATIVE COSTS FOR LAND ACQUISITION

State wise compensation deposited by National Highways Authority of India with Competent Authority for Land Acquisition for the last three years

| Name of States   | Compensation deposited with Competent Authority(LA)   | Compensation deposited with Competent Authority(LA)   | Compensation deposited with Competent Authority(LA)   |
|------------------|-------------------------------------------------------|-------------------------------------------------------|-------------------------------------------------------|
| Name of States   | 2014-15                                               | 2015-16                                               | 2016-17                                               |
| Andhra Pradesh   | 119.21                                                | 697.48                                                | 268.12                                                |
| Assam            | 124.44                                                | 4.37                                                  | 2.05                                                  |
| Bihar            | 630.82                                                | 2112.49                                               | 1112                                                  |
| Chhattisgarh     | 95.57                                                 | 78.3                                                  | 693.43                                                |
| Gujarat          | 216.59                                                | 260.59                                                | 615.13                                                |
| Goa              | 0                                                     | 0                                                     | 0                                                     |
| Haryana          | 2210.14                                               | 1662.41                                               | 771.36                                                |
| Himachal Pradesh | 12.99                                                 | 920.31                                                | 1272.18                                               |
| Jammu &Kashmir   | 48.37                                                 | 89.38                                                 | 0                                                     |
| Jharkhand        | 10.07                                                 | 1556.2                                                | 700.85                                                |
| Karnataka        | 736.93                                                | 342.08                                                | 807.16                                                |
| Kerala           | 274.52                                                | 154.73                                                | 33.22                                                 |
| Madhya Pradesh   | 0                                                     | 174.47                                                | 29.87                                                 |
| Maharashtra      | 610.29                                                | 2758.07                                               | 1055.63                                               |
| Meghalaya        | 24.89                                                 | 22.81                                                 | 155.63                                                |
| Orissa           | 497.33                                                | 520.16                                                | 427.03                                                |
| Punjab           | 3.63                                                  | 754                                                   | 135.58                                                |
| Rajasthan        | 433.66                                                | 531.95                                                | 759.3                                                 |
| Tamil Nadu       | 311.68                                                | 674.2                                                 | 1442.98                                               |
| Telangana        | -                                                     | -                                                     | 79.07                                                 |
| Uttarakhand      | 98.31                                                 | 446.5                                                 | 1039.5                                                |
| Uttar Pradesh    | 1393.17                                               | 6259.29                                               | 7888.22                                               |
| West Bengal      | 1174.39                                               | 1913.65                                               | 341.85                                                |
| TOTAL            | 9027                                                  | 21933.44                                              | 19630.16                                              |

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