Location: Rampur Baghelan

District: Satna, Madhya Pradesh

Occasion: Public Hearing

A large number of farmers from the region have gathered. Their hearts are filled with hope, and their eyes with questions. Every person present is curious, eager to learn about the policy and rules drafted by the government after extensive discussions and feedback from farmers.

At the public hearing, while the SDM and other officials of Rampur Baghelan were present, information was being delivered in simple and direct language by someone who understands both the legalities of the policy and the genuine concerns of the farmers.

“Land is something that can neither be bought nor sold; we call it Mother.”

This philosophy forms the foundation of the dream upon which Dalmia Cement intends to establish its new plant. The Madhya Pradesh government has granted the mining lease.

There was a time when farmers' lands were acquired for such projects. After acquisition, farmers would lose their ownership rights. While they received a lump-sum amount, it was often observed that the money did not last long. Once the one-time payment was spent, farmers and their families found themselves in a dire situation—with no land left and no source of income.

This is why the government has formulated this new policy.

According to officials, “The most significant benefit for the farmers is that the ownership of the land will remain with them.”

  • The government will determine the land compensation (rent) paid annually in advance.
  • This amount will be more than double the current income earned from farming.
  • There will be an annual upward revision based on the yield and crop prices in the compensation.

This compensation will be determined according to ‘The Mineral (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016’ (MCR, 2016).

Highlighting the benefits, the official says, “The farmer will no longer have to worry about fertilizers, seeds, or the weather.”

The officials are well aware of the farmers' anxieties: “Your only question will be that the form of my land will change. If I were a farmer, the same question would arise in my mind—that it will turn into a pit, how will it work?”

He provides the answer as well: “The Rules provides for determining the damage compensation at the end of Mining Lease period. But the State Government is going a step forward and intentds to determine the ‘Damage Compensation’ today, which will be credited to a dedicated account every year. You will also receive the principal and interest on that amount at the end of mining lease period.”

He emphasizes that the project can only move forward once trust is established. “We can only proceed if you give your consent. But remember, when an industry comes, development follows.”

SDM R.N. Khare of Rampur Baghelan offered similar reassurances, stating, “Ultimately, whatever the farmers want will happen.”

Arindam Mukherjee, Deputy Executive Director of Dalmia Cement, also explained in simple terms how these rules are beneficial for the farmers.

First, it is important to understand that the rights to minerals belong to the State Government, which grants the mining lease. Mukherjee explains that the government aims to bring about ‘Land Circularity.’

He states, “Mining lasts for 15-20 years. In many cases, the land is left excavated. The government wants to improve this situation for the farmers. They have enacted a law ensuring that the income farmers earn from the land continues uninterrupted, and any damage caused is fully compensated.”

Regarding the security of the farmers, Mukherjee adds, “We are ready to provide compensation from day one. This will stay with the State Government in a dedicated account so that farmers continue to earn interest. God forbid, if the company ever faces difficulties, the farmers will not suffer any loss.”

He further clarifies that even after leasing the land, the farmer can easily sell it if they wish.

“If farmers lease this land, we are providing more than double the income. If you look at the calculations, the average is coming to around ₹93,000/acre. Currently, no farmer here earns more than ₹25,000–₹30,000 per acre from the same land. Any sensible person would want to secure this income.”

Experts suggest that this rule is a ‘Double Benefit’ for farmers and a golden opportunity to increase earnings. The advantages can be understood through two major points:

  • Income Security (Guaranteed like a job): In farming, income is never guaranteed. Sometimes the weather fails, or crop prices crash. Under this policy, the farmer will receive exactly double their current annual farming income every year. This income will be fixed and secure, much like a government job, guaranteed for the entire lease period.
  • Ownership and Partnership: The most revolutionary aspect of this model is that the ownership of the land remains with the farmer. The farmer will be an ‘equal partner’ in this entire project. The land remains in their name, and the company is only granted mining rights for a fixed tenure.

Key Highlights:

  • Compensation for Damage: An annual compensation will be safely deposited into a separate account, linked to today’s guideline value.
  • Final Payout: Upon the expiry of the lease, the accumulated compensation in the special account will be handed over to the farmer.
  • Scientific Restoration: The land will be restored using scientific methods before being returned.

This policy is beneficial for land-owning farmers in two ways:

  • The land will be returned after the lease term ends.
  • Annual compensation continues during the lease, and a large sum is provided as compensation at the end of the lease, eliminating any uncertainty.

Direct Participants in the Development

The essence of this entire scheme is that the farmer will no longer be left behind in the race for development. They will be the most vital part and a direct participant in this industrial journey. With the arrival of projects like Dalmia Cement, while the face of the region will change, local landowners will reach new heights of economic prosperity while remaining the masters of their own land.