Maha Cabinet clears interest rate of 1 pc above repo rate for delay in compensation for land acquisition

IANS April 15, 2025 217 views

The Maharashtra government, led by Chief Minister Devendra Fadnavis, has introduced a significant reform in land acquisition compensation policy. By linking interest rates to the repo rate, the state aims to reduce financial burdens on government projects. The new policy will simplify compensation calculations and potentially reduce landowner opposition. Additionally, the cabinet approved three new engineering courses at a Latur technical institute, demonstrating a commitment to educational expansion.

"Now, by changing this interest rate, if there is a delay in paying the land acquisition compensation, interest will be paid at a single rate" - Maharashtra Government Release
Mumbai, April 15: The Maharashtra Cabinet, chaired by the Chief Minister Devendra Fadnavis, on Tuesday, had approved an interest rate of 1 per cent above the repo rate in the case of delay in the payment of compensation for land acquisition.

Key Points

1

Maharashtra reduces land acquisition compensation interest rate

2

New policy links rate to repo rate

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Aims to reduce project costs and opposition

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Introduces three new engineering courses at Latur institute

As per the government release, the Right to Fair Compensation and Transparency Act, 2013 has been passed for land acquisition for various public, government, and semi-government projects. The land acquisition under the provisions of this Act provides for fair compensation and rehabilitation and resettlement of the landowners. This has led to a significant reduction in the level of opposition.

The Act provides for the payment of interest at the rate of 12 percent as per Section 30(3), and nine percent and 15 percent as per Section 72 and Section 80, in case of delay in payment of land acquisition compensation to the landowners. However, this used to burden the government exchequer and increase the original cost of the projects.

“Now, by changing this interest rate, if there is a delay in paying the land acquisition compensation, interest will be paid on that amount at a single rate. This rate will be one percent more than the repo rate. A bill in this regard will be introduced in the legislature,” said the release.

Meanwhile, the Cabinet also approved the commencement of three new engineering degree courses from the academic year 2025-26 at Puranmal Lahoti Government Technical Institute in Latur. The decision was also taken to rename Puranmal Lahoti Government Technical Institute as Puranmal Lahoti Government Institute of Engineering and Technology, Latur.

Three new courses, namely Nuclear Power and Telecommunication Engineering, Computer Engineering, and Artificial Intelligence and Data Science, will be started at Puranmal Lahoti Government Technical Institute. The admission capacity for each of these courses will be 60.

The Cabinet has approved the creation and recruitment of 36 new teaching posts and 31 non-teaching posts to start these new courses. The Cabinet also approved the provision for expenditure worth Rs 26.61 crore for the next four years on the salaries of these posts and books, furniture, computers, and equipment.

Reader Comments

R
Rahul K.
Finally some relief for landowners! The old interest rates were too high and delaying projects. 1% above repo rate seems fair and balanced. 👏
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Priya M.
Interesting move but I hope this doesn't encourage officials to delay payments intentionally. The government should implement strict timelines for compensation disbursement.
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Sanjay T.
The new engineering courses in Latur are a great initiative! Nuclear Power Engineering especially sounds promising for future job opportunities.
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Anjali P.
While I understand the need to reduce financial burden, reducing interest rates from 12-15% to just 1% above repo seems like a big jump. Farmers deserve fair compensation for delays.
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Vikram S.
Good to see Maharashtra focusing on technical education. AI and Data Science courses will prepare students for the jobs of tomorrow. More institutes should follow this model!
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Neha R.
The ₹26 crore investment in education infrastructure is money well spent. Hope they maintain quality standards in these new courses. 🤞

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Tags:
Land Acquisition Maharashtra Cabinet Devendra Fadnavis Government Policy Land Compensation Technical Education
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