NEW DELHI: High circle rates and varying norms for fixing the rate based on the size of land parcels have made it difficult for the National Highways Authority of India to acquire land for expansion of existing highways in Uttar Pradesh and Madhya Pradesh. While acquiring one hectare of land in these states could cost up to Rs 9.5 crore if the land parcels along the NHs are small, big parcels could cost just Rs 1 crore per hectare.
Citing these discrepancies which have pushed up the compensation amount, the road transport ministry has urged the two states to rationalise circle rates.
This is a big concern particularly in eastern UP in areas such as Ghazipur, Jaunpur and Varanasi where circle rates of small land parcels (less than 500 sq m) are close to Rs 2.4 crore.