Chennai, Jan 18 (IANS): PMK founder S. Ramadoss has a raised red flag against the NLC India Ltd's New Rehabilitation and Resettlement Policy and termed the compensation payable to land owners "paltry."

The integrated lignite/coal mining and power generation company NLC India on Monday announced its New Rehabilitation and Resettlement Policy for the land owners whose land the company would acquire for expansion.

The new policy was launched by Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi on Monday.

According to Ramadoss, the NLC India is planning to acquire 12,125 acres in 26 villages in Cuddalore district for building its third lignite mine.

The company will also be acquiring the land on which people have built their homes.

He said the land proposed to be acquired by NLC India is a fertile agricultural land with a market rate of about Rs 60-70 lakh per acre while the company is offering just Rs 23 lakh per acre.

Ramadoss said farmers can earn the compensation paid by NLC India in two years from farming

Similarly, the housing plots command a market price of Rs 2.5 - 3 lakh/cent - one cent is about 435 sq ft- while the company is offering Rs 40,000 (in rural areas) and Rs 75,000 (in urban areas).

The NLC India also announced that it would build a 1,000 sq.ft house on a 2,178 sq.ft plot as part of a rehabilitation programme for the land owners.

Refusing permanent jobs for a member of the landowners' family, NLC India said compensation between Rs 10 and 15 lakh will be paid or provide contract work, Ramadoss said.

According to him, the 8,751 families living in the 26 villages will lose their livelihood and their living place. The place where they will be relocated does not have any basic facilities.

The people will spend their compensation money in a couple of years and be debt ridden, Ramadoss said.

According to him, the land proposed to be acquired is one third of the land that has been acquired by NLC India till date.

The company will have its mine, power plant on the land proposed to be acquired which would generate thousands of jobs and it is not landowners will not be employed is cruel attitude of NLC India, said Ramadoss.

He said NLC India should increase the cash compensation for the land to Rs 1 crore per acre, Rs 3 lakh for each cent for housing plot and a permanent job in the company for one person in the family of whose land proposed to be acquired.