Thirteen states levy administrative charges for acquisition of land for the National Highways. These charges vary from about 10% to 20.5% of the compensation amount.
The issue of administrative charges for acquisition of land for the National Highways was deliberated in-depth in the Ministry and the States were asked to rationalize.
Raise a bill for the actual expenditure incurred by the State Government on land acquisition for the National Highways; or
Consider prescribing a fixed amount per hectare acquisition cost (as in the case of Haryana, it is Rs. 1.00 lakh per acre or Rs. 2.5 lakh per hectare); or
Cap the administrative charges at a uniform rate of 2.5% of the compensation amount, while allowing for adjustment of the additional expenditure incurred by the Project Implementing Agencies of this Ministry, on engagement of the Special Land Acquisition Support Units to assist the CALA.
Most of the States have agreed to rationalize the administrative charges. As per the decision taken by the Ministry, wherever a State has not rationalized the administrative charges, the Ministry and/or its executive agencies have been paying this amount with a cap of 2.5% of the compensation amount.
No annual charges are beingpaid by NHAI to States but only administrative charges as mentioned above are paid on case to case basis, for acquisition of land for National Highway projects.
The Minister of State for Road Transport & Highways Shri Mansukh L Mandaviya gave this information in reply to a question in Lok Sabha today.>