Government is in the final stages of formulating a new policy for compensating villagers whose land is taken for special economic zones envisaging increase in solatium up to 100 per cent, Home Minister Shivraj Patil said on Friday.

"The new policy for land acquisition is under formulation and is in the final stages," the home minister said in the Rajya Sabha. Replying to a long debate on SEZ proposal at Nandigram in West Bengal, Patil said that the land owners losing their holdings would not only be paid a liberal compensation but also a " solatium" under the Land Acquisition Act."

There is a proposal to increase the solatium. Whether the increase will be 50 per cent, 60 per cent or 100 per cent is under consideration of the government," he said.

This amount, which is paid over and above the compensation for land purchase, is at present 35 per cent of land value. He said only barren land should be used for the SEZs and other industrial projects. There would also be an effort to provide "land for land" to the affected farmers, the home minister said.

In case the SEZ or industrial project promoter acquires land in excess of the requirement, he would be asked to share the gains made from the extra land kept unused. Besides, farmers and those affected by the SEZs would be given non-transferable shares so that "they benefit from the progress in the industrial units," he said.

Seeking a clarification, independent member Bimal Jalan said the government should itself come up with SEZs and invite projects rather than leaving it to the industry. The government has already unveiled a Rehabilitationa and Resettlement policy envisaging change in the acquisition laws.

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