Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has sought expression of interest from insurers for the distribution of the annuity to land owner whose land has been acquired by various agencies of Haryana government on or after 5 March 2005.
In respond to this three private insurers ICICI Prudential, SBI Life and Bajaj Allianz have evinced their interest in managing and distributing annuity to the land owners.
The criteria to bid for it include a company must have the net worth of Rs 1,000 crore and approval of Insurance Regulatory and Development Authority (IRDA). HSIIDC will announce the successful bidder within a month.
So far Haryana government has acquired about 40,000 acres of land since 2005.
Haryana government has formed a policy in 2007 according to which in order to rehabilitate the land owners it will apart from compensation for the land also provide annuity for 33 years.
Initially the annuity was fixed at Rs 15,000 per annum per acre which to be increased by Rs 500 every year; however in November 2010 Haryana government has increased the annuity amount to Rs 21,000 per acre per annum which was to be increased by Rs 750 every year.
The annuity for Special Economic Zone (SEZ), IT Parks is also revised from Rs 21,000 to Rs 42,000 per acre per annum; and annual increment will be Rs 1,500. The revised annuity rates will be applicable for the land acquired on or after 7 September 2010.