NHAI Speeds up its Land Acquisition drive

The National Highways Authority of India (NHAI) has fast-tracked its land acquisition drive even though there has been a slow down in awarding projects in the recent past.  More than 5,000 hectares of land has been acquired by the NHAI in the first half of  2013-14. This is 51% more than the 3,300 hectares of land that it acquired in the corresponding period last year.

Speculation regarding land acquired:

The land that has been acquired will be used for projects that have already been awarded by NHAI, as well as those that are likely to be awarded in the near future. However, speculation is rife as to whether most of the land acquired was to be used for future road projects or to fulfil NHAI’s obligations for land acquisition that was supposed to be made last year. As disclosed by a senior NHAI official, about 5,000 hectares of land was in the possession of NHAI during the first six month of the 2013-14 fiscal. Besides, another 5,600 hectares of land has been acquired with 3D notification, wherein the land thus acquired vests with the NHAI. The land thus vested with the NHAI can then be possessed, which is the final stage of land acquisition.

Drop in land acquisition during the previous fiscals:

In the fiscal 2012-13, the land possessed by NHAI was 6,800 hectares, and in 2011-12,  it possessed 6,800 hectares, with 8,000 hectares being in the 3D stage. These figures for the previous two fiscals are considerably lower when compared to the figures for the current fiscal. It would be difficult to pin-point any particular reason for the drop in land acquisition during the last fiscal. This is mainly because the process of land acquisition is complex, with multiple levels of interaction taking place with land owners as well as state government officials.

Cost for land acquisition:

In terms of the cost incurred for land acquisition, the NHAI had spent about Rs.3,000 crore in the first half of 2013-14, while during the corresponding period last year, it had spent only Rs.1,400 crore. Incidentally, NHAI spent between Rs.4,500-4,600 crore in the fiscal 2012-13 for land acquisition, and about Rs. 5,000 crore in the 2011-12 fiscal. However, it would be unable to decipher an average price for the land acquired as there are huge variations in price based on the area from which it is acquired.

Land awarded through EPC:

Around 500-600 km of land was awarded by the NHAI for highway development under the Engineering Procurement Contract (EPC). Incidentally, EPC contracts are fully government-funded, and are entirely dedicated towards road development projects. It is expected that by March, 2014, the NHAI would award about 2,000 km  of land towards highway development. As announced by the NHAI chairman, work is expected to commence for the development of highways across 1,500 km, by March, 2014. It was also revealed that work on projects would commence only after atleast 90% of land has already been acquired