Gujarat Industrial Development Corporation to buy land at market rate, share 10% of profit with owner

With Vibrant Gujarat Summit round the corner, the state government is going all out to convince investors that Gujarat’s bullish approach on industries is also inclusive. A new policy for acquisition of land for industrial estates, offering various incentives to landowners, was announced on Wednesday.

The land will be acquired only with the consent of the owner, and people whose land is taken, will get a share of the profits earned by the Gujarat Industrial Development Corporation (GIDC) from the land. Under the policy — called ‘Participatory Policy for Development of New Estates’ — landowners will become partners with GIDC, and will get a fixed share of the profits the land generates.

“The most prominent feature of the policy is that land acquisition will be done through consent. Farmers will be paid the market price for their land, which will not be fixed by GIDC, but by CEPT to ensure neutrality in price determination,” said Gujarat minister of state for energy, Saurabh Patel. He was addressing media-persons after announcing the policy on Wednesday evening.

The minister said the GIDC will pay the landowners 10% of the difference between the buying and the selling price of the land. This will ensure that those whose land is taken benefit from future appreciation in land prices, he added.

Patel said the policy had been announced in the wake of increasing requirement for large areas of land because of the growing industrialisation of the state.

The second policy - Policy for GIDC Developing Estates on Privately Purchased Land in PPP Mode - is aimed at developing industrial estates on land purchased privately by industry associations. This will promote clusters in various sectors.