Pension Scheme

• Each farmer who has given land — at the acquisition rate of Rs 9-12 lakh an acre — will get an extra 10% of the compensation amount as an annual pension for a period of 10-15 years to be finalised after negotiations. For example, if a farmer got Rs 5 lakh as compensation, his pension will be Rs 50,000 each year. The pension will be paid monthly through banks to ensure that the farmer doesn’t fritter it away at one go.

• The scheme will have a Minimum Sum Assured clause so that holders of tiny plots are not stuck with a paltry sum. The minimum will be worked out through discussions. This acquires significance since the land-holding pattern in Singur was highly fragmented, one reason why the government had to issue cheques to as many as 13,100 beneficiaries. Almost 10,800 accepted the cheques, 2,251 didn’t.

• Given that the state spent Rs 120 crore on compensation, the pension’s financial implication is Rs 12 crore a year, Rs 15 crore factoring in the Minimum Sum Assured clause. The Tatas will bear this cost.

Land for Land

• In case the pension scheme doesn’t break the deadlock, the govt is ready with a “land-for-land” deal. Land acquired for which compensation has been refused by farmers comes to around 220 acres — instead of 400 as is being claimed by Mamata Banerjee — and the government thinks this will go down with many opting for the pension scheme. For those insisting on land, the strategy is to accommodate them in about 15 acres the West Bengal Industrial Development Corporation purchased outside the Tata Motors car plant area having anticipated a sharp hike in land rates.

• In addition, the WBIDC may also use its 47 acres in the plant premises that it has earmarked for “future use.” If more land is required, it might go in for fresh purchase from the open market. This land need not be contiguous so it can be purchased in patches over a scattered area.

• A senior official admitted that this was the “option of last resort” since land return may set off a whole new set of complications but it had this in its arsenal to ensure that Mamata responds to the talk offer. As the legal advisor to the Governor for Friday’s talks, Justice Chittotosh Mukherjee hinted today: “Things might ultimately boil down to land.”

Other Benefits:

• Distribution of shops in and around the plant or distribution of small plots to landlosers. A WBIDC official said that there was scope for setting up 10 feet X 10 feet shop-spaces to accommodate 12,000 beneficiaries.

Sources said the Tatas have been apprised of these proposals and are said to have agreed to bear the cost to avoid a change in the present structure of land-holding in Singur plant. It’s learnt that the Tatas have told the government that a change in the structure of landholding could force them to shift the Nano plant out. Asked about the package, state Chief Secretary Amit Kiron Deb said: “It is difficult to tell firmly at this stage. But one thing is sure: the stalemate is not expected to be settled in one meeting. It will take some time and several sessions for all sides to resolve the crisis.”

Government officials and CPM leaders feel that this package gives Mamata a way out. Said a Left Front Minister to The Indian Express: “Mamata wins both ways, she can say that she forced the government to pay more to the farmers and not drive out the Nano factory. As for us, we will be happy with a solution that allows the Nano to come to West Bengal.”