Maharashtra State Government: New Nagpur Project-Affected Farmers to Get Developed Commercial Plots

In a revolutionary step that marks the end of an old era and the beginning of a new one in land acquisition policies and rural development initiatives, the Maharashtra state government has finally approved a historic rehabilitation package for project-affected farmers of the New Nagpur area. Breaking away from conventional compensation practices that have been in vogue until now, the state government has come up with a comprehensive asset-based package. According to this, farmers who give up their land for the ambitious International Business and Financial Centre (IBFC) projects will become commercial partners of the new city.

The announcement was led by Maharashtra Revenue Minister Chandrashekhar Bawankule, who also serves as Nagpur’s Guardian Minister. During a high-level briefing on the initiatives of the Nagpur Metropolitan Region Development Authority (NMRDA), the Minister revealed that the state has finalised a "land-for-land" compensation ratio that gives utmost importance to long-term wealth creation. To be specific, for every one acre of land acquired for the New Nagpur project, the affected farmers are now assured a 1,500 sq ft developed commercial plot. When measured in hectares, this translates to a massive allocation of 3,500 sq ft of commercial land per hectare, expected to appreciate significantly as the district grows.

At the heart of this plan is the waiver of all government development charges, which means that the project-affected persons (PAPs) will get these prime plots without paying a single penny extra. The Revenue Minister described this program as a tool to deliver assistance to the rural population of Mouza Godhni and Mouza Ladgaon, which serves as the primary target area for ongoing acquisition work. The original landowners will gain immediate advantages from the New Nagpur infrastructure development project, as they will possess commercial property in a planned global financial centre receiving business prospects through lease contracts. 

The New Nagpur International Business and Financial Centre is a massive project with a total project outlay of around ₹11,300 crores. Of this, ₹6,500 crore is being invested in the development of infrastructure and land acquisition, while another ₹4,800 crore is driving the development of the Nagpur Outer Ring Road. This massive connectivity project is a critical component of the IBFC Nagpur connectivity project, which will connect the new business hub to the major national highways and the existing city centre. This massive project is being funded through a strategic partnership with HUDCO (Housing and Urban Development Corporation), which has extended a substantial loan with a state government guarantee to ensure that the New Nagpur "plug-and-play" infrastructure project is of international standards.

Bawankule also highlighted the rising issues of unauthorised layouts in Nagpur. In a warning to the land mafia and developers, the state has set a clear-cut-off date of October 15, 2024, for the regularisation of plots under the fragmentation law. This means that any layout or subdivision developed after this date will not be eligible for regularisation, and the authorities have been directed to take criminal action against the illegal developers. This is part of the effort to ensure that the real estate market in Nagpur is stabilised and that the development of the New Nagpur smart city is not threatened by haphazard illegal constructions.

The Minister also elaborated on the administrative reforms launched as part of the Chhatrapati Shivaji Maharaj Revenue Campaign, an intensive three-month campaign to bring Maharashtra’s revenue services to the doorsteps of the citizens. This also involves the simplification of land measurement procedures through the appointment of private surveyors to clear a huge backlog of applications. To ensure transparency in the rural economy, the government has fast-tracked an investigation into a ₹1,200 crore financial irregularity at the Nagpur District Central Cooperative Bank (NDCCB), assuring the public that the interests of rural depositors will be safeguarded at all costs.

With the NMRDA joint measurement process set to begin in the Hingna taluka, the New Nagpur rehabilitation model is under scrutiny by urban planners across the country. By incorporating project-affected farmers into the city’s commercial structure, the Maharashtra government is working to provide a solution to the long-standing problem of the conflict between industrialisation and agricultural rights. The success of this developed commercial plot allocation may set a precedent for the country, demonstrating that mega-projects can be drivers of inclusive growth rather than displacement. 

With the New Nagpur IBFC set to create more than 5 lakh job opportunities in the IT, finance, and logistics sectors, the fact that farmers are included as property owners will ensure that they are not left out. As the state continues to implement the Nagpur Regional Plan 2026, this particular policy is a testament to a more compassionate and sensible approach to nation-building, where the development of the city and the success of the farmer are intertwined.