MP govt doubles land compensation multiplier; Congress says credit belongs to UPA-era law

The Madhya Pradesh Cabinet has approved an increase in the multiplication factor for land acquisition compensation in rural areas from 1.0 to 2.0, effectively doubling the compensation to up to four times the market price. Chief Minister Mohan Yadav described the decision as a major step in the interest of farmers, taken during the state's 'Agriculture Year 2026'. The change, to be implemented via an amendment to the state's rules under the 2013 land acquisition law, is expected to expedite infrastructure projects including roads, railways, and dams.

However, the Congress party has accused the state's BJP government of taking 'fake credit' for the decision. Congress General Secretary Jairam Ramesh stated that the provision for fourfold compensation already existed in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, passed by the UPA government under former Prime Minister Manmohan Singh. Ramesh claimed the BJP government was a decade late in implementing the provision and was now trying to claim undeserved credit.

'After a decade-long wait, the Madhya Pradesh Government has decided to implement fourfold compensation for farmers in accordance with the land acquisition law enacted by the UPA government. However, the state's BJP government, instead of apologizing for this delay, is trying to take false credit,' Ramesh said in a social media post.

The RFCTLARR Act, 2013, includes a first schedule that allows states to notify a multiplier for rural land acquisition. Until now, Madhya Pradesh had kept the multiplier at 1.0, meaning compensation was double the market rate. With the new multiplier of 2.0, compensation rises to four times the market rate. The amendment will be made to the Madhya Pradesh Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2015.

The decision is significant for several infrastructure projects pending in the state, including the Ken-Betwa river-linking project in Bundelkhand, which has faced protests from local farmers and tribal communities. The government hopes the enhanced compensation will ease land acquisition and reduce opposition.