The state industry department has proposed a new land pooling policy for industrial, institutional and IT projects to ensure maximum availability of land for industrial units and to also include land owners in the development process.
The policy excludes commercial and housing projects.
Under the new policy, the industry department is planning to give a basic minimum amount to farmers and land owners on per acre basis for five years till the land is developed.
If the land owner is unable to sell the land at the end of the development period, he or she will have the option of selling it to the development authority concerned which will not have the right to refuse.
Additional chief secretary (industrial development) Alok Kumar said land pooling policy had been adopted in states like Gujarat and Andhra Pradesh but it was largely for residential purposes.
UP also has a land policy for housing development and this is the first time that the system is being used for industrial development.
Under the proposed policy, minimum 25 acre land should be identified for development and owners of at least 80% land should be ready to participate in the scheme willingly.
The remaining 20% land can be acquired under the Land Acquisition Act or by other means.
The land should also be of mixed use as it has to be developed for industrial use with commercial and residential facilities. If the land is not of mixed use, the development authority concerned will be allowed to swap land use with another plot of a similar size.
During development, 50% of the total area would go for utilities like roads and common facilities. Of the remaining 50%, half will be returned to the land owner after five years. Till five years or the time the land is developed, whichever is later, the owner will be paid Rs 5,000 per acre per month as compensation for loss of agriculture.
“Once the plot is developed, 25% of the land would be returned to the land owner. This will include 80% or at least 450 sq m of industrial land, 12% for residential use for the main project and 8% for commercial use. This will not be contiguous land but will include three separate plots,” Kumar said.
Before the development begins, the development authority will sign an agreement with the owner. “The proposal has received an in-principle nod and is awaiting cabinet clearance,” Kumar added.