Administrative Charges for Land Acquisition

December 27, 2018

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Thirteen states levy administrative charges for acquisition of land for the National Highways. These charges vary from about 10% to 20.5% of the compensation amount. The details of administrative charges being levied by the States are as follows :

Details of Administrative Costs/ Charges levied by states on acquisition of land for the National Highways.
Sr. No.	State	Administrative Charges (AC)
	Andhra Pradesh	Nil
	Arunachal Pradesh	Nil
	Assam	10% of the Compensation Amount
	Bihar	2.5% of the Compensation Amount
	Chhattisgarh	2.5% of the Compensation Amount
	Goa	NIL
	Gujarat	NIL
	Haryana	Rs. 1.00 lakh per acre as per clause 19(ii) of Government of Haryana Government Notification dated 09.11.2010
	Himachal Pradesh	2.5% of the total award value
	Jammu & Kashmir	Nil
	Jharkhand	2.5% of the Compensation Amount
	Karnataka	Nil
	Kerala	2.5% of the Compensation Amount
	Madhya Pradesh	2.5% of the Compensation Amount
	Maharashtra	2.5% of the Compensation Amount
	Manipur	Nil
	Meghalaya	Nil
	Mizoram	Nil
	Nagaland	Nil
	Odisha	20% of the estimated compensation amount
	Punjab	Nil
	Rajasthan	Nil
	Sikkim	Nil
	Tamil Nadu	Nil
	Telangana	Nil
	Tripura	Nil
	Uttarakhand	2.5% of the Compensation Amount. However, if the actual expenditure incurred by the State Government on land acquisition for the National Highways is more, then Administrative charges shall be the actual expenditure incurred by the State Government or 5% of the compensation amount, whichever is lower.
	Uttar Pradesh	For expenditure incurred towards establishment of acquisition units. (Includes pay, allowances, leave, pay, pension, gratuity and all other relevant expenses) – administrative cost @ 2.50% of compensation cost. For expenditure incurred towards preparation of records, preliminary spot inspections and other works in the preliminary stages of acquisition, expenses on the process where consent of affected family has to be obtained or not to be obtained, as the case may be. – Administrative cost shall be the real expenditure on land acquisition establishment unit.
	West Bengal	2.5% of the Compensation Amount

The issue of administrative charges for acquisition of land for the National Highways was deliberated in-depth in the Ministry and the States were asked to rationalize the sameand choose from the following three options:

Raise a bill for the actual expenditure incurred by the State Government on land acquisition for the National Highways; or
Consider prescribing a fixed amount per hectare acquisition cost (as in the case of Haryana, it is Rs. 1.00 lakh per acre or Rs. 2.5 lakh per hectare); or
Cap the administrative charges at a uniform rate of 2.5% of the compensation amount, while allowing for adjustment of the additional expenditure incurred by the Project Implementing Agencies of this Ministry, on engagement of the Special Land Acquisition Support Units to assist the CALA.

Most of the States have agreed to rationalize the administrative charges. As per the decision taken by the Ministry, wherever a State has not rationalized the administrative charges, the Ministry and/or its executive agencies have been paying this amount with a cap of 2.5% of the compensation amount.No annual charges arebeingpaid by NHAI to States but only administrative charges as mentioned above are paid on case to case basis, for acquisition of land for National Highway projects.

The Minister of State for Road Transport & Highways Shri Mansukh L Mandaviya gave this information in reply to a question in Lok Sabha today.