At a time when farmers' protests have derailed plans of many companies to set up special economic zones, fertiliser cooperative IFFCO has found a novel way to avoid such controversies -- by making peasants direct shareholders in an upcoming project in Andhra Pradesh.

Indian Farmers Fertiliser Cooperative Ltd will establish what it calls the country's first 'Kisan SEZ' at Nellore district in the state at an investment of Rs 2,400 crore (Rs 24 billion).

"India's first Kisan SEZ is expected to generate employment for more than 10,000 persons, besides resulting in large scale economic development of the region," IFFCO chairman S K Jakhar said.

Jakhar said the project would not displace any farmer as the land -- about 2,800 acres -- is already in possession of the cooperative. The project has also been given the green signal by the commerce ministry. Farmers would be direct shareholders in the enclave. Modern infrastructure facilities would be developed for a range of industries with focus on food processing and agriculture-based activities, he added.

Alongside the multi-product SEZ, IFFCO plans to set up a technical training institute and construction training facilities in the state for farmers.

Farmers in Maharashtra, Haryana and West Bengal have protested land acquisition for SEZs and industrial units. The Centre has put a ceiling of 5,000 hectare to an SEZ, and come out with a resettlement and rehabilitation policy that makes it mandatory for developers to buy bulk of the land directly from farmers at market price. The developers also need to provide employment to the affected families.