State compensation for land acquisition has reached a new high with Punjab offering Rs 1.5 crore per acre to farmers of Jhurheri village in return for land for the Chandigarh international airport.

The Punjab government has also waived off registration fee and stamp duty if these farmers buy land in the state with the compensation money within two years. It has promised them electricity connections on priority.

Calling it the highest compensation ever given by any state government to farmers, Punjab Finance Minister Manpreet Badal said: “The government had promised to match market rates and it has done just that.”

The state government hopes to acquire 306 acres for approximately Rs 460 crore by the end of this month.

The farmers concerned are on cloud nine. “We are happy with the way the government negotiated with us directly and decided the compensation. We had asked for Rs 2 crore but the government agreed to give us Rs 1.5 crore,” said Prem Singh, sarpanch of Jhurheri village.

The state government had not been so generous in its previous awards. Two years ago, it gave Rs 64 lakh per acre to farmers of Chilla for the development of Knowledge City in Mohali.

The new compensation award has created ripples in neighbouring Haryana which just worked out a compensation policy for SEZs, fixing Rs 21 lakh per acre for land in Gurgaon where real estate prices have shot through the roof.