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POWER GAMES

Farmer woes loom over reliance plant

The Dadri plant in Uttar Pradesh is touted to be the world’s largest gas-based power project. But thousands of farmers have not got the compensation they were promised. Corruption has denied them a fair price, reports Vineet Khare

Denied: Farmers of the region stage a dharna near the REL site office
Photos K. Satheesh
The dispute over compensation given to farmers for land acquired by the Uttar Pradesh government for the Reliance power plant at Dadri could turn out to be a speedbreaker in the project’s completion.

While farmers say their land has been taken away at cheap rates, officials of Anil Ambani-led Reliance Energy Limited (REL) claim that vested interests are hell bent on politicising the project. They say the project will provide much-needed power to several states in the region.

REL has already spent about Rs 125 crore on the project that spans seven villages including Dehra and Bajhera Khurd, hamlets in Ghaziabad district, and is like to affect nearly 30,000 families. The project was initially planned to generate 3,500 mw, but its capacity has been increased to 7,500 mw. Sources say REL plans to further up it to 10,000 mw.

The story dates to February 22, 2004, when hundreds of families gathered to hear CM Mulayam Singh announce the project. After all, he was about to launch the world’s largest gas-based power plant in their neighbourhood. The only nagging factor was the proposed price for nearly 2,500 acres spanning seven villages to be acquired for the Rs 13,000 crore project.

Says 65-year-old Deepa Singh of Bajheda Khurd: “The CM first said he would give us Rs 250 per square yard. When farmers protested, he upped the rate to Rs 260. He subsequently stopped at Rs 310. Everyone agreed. We feel cheated at being paid Rs 150 square yard instead of the promised Rs 310. The announcement was made in front of thousands of farmers.” The matter was widely reported in local dailies.

‘The chief minister first said he would give us Rs 250 per square yard. When farmers protested, he upped the rate to Rs 260. He stopped at Rs 310. Everyone agreed. We feel cheated at being paid Rs 150 square yard instead of the promised Rs 310. The announcement was made in front of thousands of farmers,’ says Deepa Singh of Bajheda Khurd. And he is not the only one feeling cheated by the government
Since they didn’t get that price, farmers began protesting against the government’s acquisition price saying it was less than the market price and contrary to the promises made by UP Chief Minister Mulayam Singh Yadav. Former Prime Minister VP Singh and Jan Morcha leader Raj Babbar were recent entrants into the Dadri fray. As the agitation ripened, so did the State’s response. Almost two-and-a-half years after the project was announced, lathi-wielding Provincial Armed Constabulary (PAC) personnel beat protesting farmers in Bajhera Khurd.

A fact-finding report by Research Foundation for Science, Technology and Ecology director Vandana Shiva recounts the incident: “On the night of July 7, and morning on July 8, 2006, police battalions and the private security force of Reliance invaded the village of Bajhera Khurd, Ghaziabad, beat up women in the village, stole cash and other expensive belongings… broke every vehicle and stole every mobile.”

REL officials refute the involvement of “so-called private security guards”. “Like anyone trying to protect one’s assets, we called up the police which took action. How come Reliance figures in this,” asked a Reliance official.

Narmada Bachao Andolan convenor Medha Patkar, who met the victims, says: “While it’s the police who mercilessly beat up farmers, cases have been registered against farmers.”

The fact-finding report lists some grounds for the farmer dissatisfaction. “The prices in the market are Rs 13,500 square metre. On top of this, the government of UP has waived all the stamp fees and other related costs for buying the land for Reliance, along with the subsidy in which Reliance would pay only 40 percent of the costs and the government would pay the rest. This deal has been done under the Land Acquisition Act of the government under which the government can only acquire land of the farmers and villagers for public development projects and not for private commercial purposes. Reliance is reportedly planning to use 2,700 acres for the project, when experts say 700-800 acres would be sufficient. The land is the prime agriculture land of northern India and is often touted as one of the most fertile lands of the world, with the alluvial layer deeper than 300 metres. The land is also abundant with water and is just 2-3 km away from the main Ganga Canal. Reliance has also barbed the land with wires.”

An REL spokesperson counters, “The acquisition process was in line with the various government guidelines and orders. A land negotiation committee was constituted to decide the compensation and it included representatives of the administration. The compensation was agreed upon and over 5,000 farmers signed kararnamas (letter of agreement). The farmers got more than four to five times of the then prevailing circle and market rate. The farmers were paid Rs 150 per square yard against a prevailing rate of Rs 30 to Rs 70. Reliance paid a stamp duty of Rs 4.9 crore.”

Aug 05 , 2006
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