7th Sep, 2008

Bhutan Governmant: Revised compensation for crops on land

Revised compensation for crops on land acquired by Government The Royal Government has announced the revised compensation for crops on land acquired by the government. The rates vary for cash crops, fruit trees, and other crops. According to the new revised rate, there is an increase of 300 percent for non bearing trees and 400 percent for fruit bearing trees. The new rates announced yesterday came into effect from September 1.

If you have an apple orchard with trees that are yet to bear fruit and if your orchard is acquired by the government, you will be paid 300 percent more compensation for the trees than what you would have been paid earlier. The compensation for the land is being worked out by the Government.

With the revised rate, orchard owners who have apple trees which are one year old will be paid Nu. 784 per tree compared Nu. 196, the previous rate.

For fruit bearing apple trees, the owner was paid Nu. 821 per tree earlier but with the revised rate, the owner will get Nu. 4,105. A tree is considered fruit bearing in its fifth year.

Speaking at a press conference yesterday afternoon, the Finance Minister Lyonpo Wangdi Norbu said the revision is as per the requirement of the new revised Land Act that was passed by the National Assembly last year. The Act states that any land or property taken over by the government for public purposes must be compensated in a fair manner.

He said the Government should have come out with the land compensation first instead of the crop and property on the land.

Lyonpo Wangdi Norbu said the land compensation is being worked out and once complete will be submitted to the cabinet. A member of the committee under Property Assessment and Valuation Authority said in the revised land compensation rate, land owners in rural areas will be offered different rates depending on the dzongkhags.

The authority was established under the Department of National Properties as per the requirement of the revised land act of 2007.

He said until now land owners in rural areas were paid Nu. 35,000 for an acre of wetland and Nu. 20,000 per acre for dry land irrespective of the dzongkhag.

The revised compensation rate also includes compensation for annual crops like paddy, wheat and chilies. For acquiring an acre of paddy, the owner will be paid over Nu. 12,600 and for an acre of wheat, the Government will provide close to Nu. 3,000. For an acre of chilies, the owner will be paid over Nu. 48,000.

The Government will be acquiring 279 acres of land for the Punatsang Chu Hydro Power Project. Government will be paying over Nu. four million to the owners of fruit trees in Wangduephodrang whose land has been acquired for the project. It excludes the payment for land and other property.
Source: BBS

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