KIIFB’s land acquisition: Administrative costs exceed Rs 1,900 crore

THIRUVANANTHAPURAM: KIIFB has estimated administrative expenses of more than Rs 1,900 crore for acquiring thousands of acres of land without any specific projects in place. Land acquisition in Kannur and Palakkad districts was estimated at Rs 12,727 crore. Administrative expenses were calculated at up to 15 per cent of the land value. The Vigilance Department may also investigate this aspect.

As land acquisition can take up to seven years, the total expenditure could reach Rs 15,000 crore. If that happens, administrative expenses could rise to Rs 2,250 crore. The rules stipulate that administrative expenses for land acquisition for major projects must not exceed 2.5 per cent of the land value. For complex land acquisition undertaken for railway projects, the limit is five per cent. For other Central government projects, it is one per cent.

A total of 5,366 acres was acquired in Kannur and Palakkad at a rate of Rs 2.4 crore per acre. HUDCO provided loans for the land acquisition through KINFRA. The plan was to acquire 4,896 acres in Kannur and 470 acres in Palakkad in four phases.

Meanwhile, the 2016–17 Budget had announced the acquisition of 1,000 acres at Panayathamparamba in Pattanur, Kannur, for an industrial zone. This was subsequently changed, with a decision taken to acquire a total of 4,896 acres in Kannur district. Of this, 1,000 acres had already been acquired for Rs 2,489 crore.

Land acquisition notifications were extended several times. Compensation at 12 per cent must also be paid for the period from the completion of the social impact assessment until the land is acquired.

Kannur expected to become an investment hub

Acting on the directions of then Chief Minister Pinarayi Vijayan, the KIIFB General Body approved the acquisition of additional land in Kannur and Palakkad. The meeting was held on October 25, 2018.

According to a note submitted by KINFRA, the land could be acquired for the healthcare sector, logistics, hotel-related industries, universities, research centres and academies. The acquisition in Kannur was justified on the grounds that Kannur International Airport and Azhikkal Port would turn the district into an investment hub.

Palakkad, too, was expected to attract investment because of its proximity to the Kochi–Coimbatore industrial corridor.

The land acquired was land that private individuals had purchased at low prices.