direct purchase

Direct Purchase Scheme

Road infrastructural development projects bring people close to each other. When such connections are established, people along with goods and services can easily move from one place to another. Once this happens, new employment potential is created and agricultural production gets a boost. This opens up new avenues for development.

These types of development projects usually require large tracts of land. But those people whose livelihood, security and social status depends on the land find it difficult to part with their land. So it is a challenge to the administration to fix the appropriate land price and at the same time ensure the participation of the land owners in the process of the project. If the land owners are dissatisfied, then it would not be right to claim that the project is successfully implemented.

As land and other economic resources are finite, it is always a challenge to procure land for development projects.

As a solution to this, Maharashtra government has allowed two options for the land procurement for Maharashtra Samruddhi Mahamarg. These two options are as below -

The first is that the land owners should voluntarily give their land and be a part of the project. The second option is that of ‘Direct Purchase Scheme’, under which they can sell their land to MSRDC at the appropriate price fixed.

Under the scheme, land will be purchased as per the provision in Section 19 J of the Maharashtra Highways (Amendment) Act, 2016, and the compensation is fixed as per government directions which is at higher rates than Land Acquisition, Rehabilitation and Resettlement Act, 2013.

01 The ready reckoner rates of the land in the particular region will be considered as a basis for calculating the rate of land. Trees, houses, wells and other such assets on the farm will also be included in calculating the rate.

02 If the land is agricultural land or falls in “no development zone’’ then the factor rate of this land will be 2. The government will also give 100% solatium to the land owner.

03 The land owner will also get a incentive of 25% as he has readily agreed to be a part of this grand project. Adding to it the double of the price decided as per the ready reckoner rate along with 100% solatium, the land owner will be a beneficiary to 5 times the original price of his land.

For example, price according to ready reckoner rate of the land is Rs. 1,00,000 per ha, and if this land is agricultural land or falls in ‘no development zone’ then the price of the land will be double i.e Rs. 2,00,000 per ha. As a solatium the government will match this price of the land, hence, the land owner will receive Rs. 4,00,000/-. Since the land owner has voluntarily participated in the Direct Purchase Scheme, he will be getting 25% incentive from the government. Which means you add 25% to Rs. 4,00,000/- which works out to be Rs. 5,00,000 per hectare. This amount is 5 times the price of the ready reckoner or the average sale price for consideration.


04 In Urban areas, the factor is 1, where the compensation amount is double and as an incentive for Direct purchase, it can be 2.5 times of the ready reckoner rates or average sales statistics price.

05 In rural areas, the factor is 1.5, where the compensation amount can be 3 times and as an incentive for Direct purchase, it can be 3.75 times of the ready reckoner rates or average sales statistics price.

06 Committees under the district collectors of respective districts will complete the necessary proceedings and finalise the compensation accordingly. MSRDC will then give the compensation amount to the land owners, who are consenting for the Direct purchase process.

As the compensation is much more than the prevailing market prices, land owners are requested to participate in the scheme and help build the best infrastructure project.

Maharashtra Samruddhi Mahamarg

Maharashtra Samruddhi Mahamarg aims at providing an impetus to the overall development of rural areas by attracting domestic and foreign investments.

About Project

Get in touch

  • Maharashtra State Road Development Corporation Ltd
    Napean Sea Road, Priyadarshini Park,
    Mumbai 400 036, Maharashtra, India.
  • 91 22 23685909,
    91 22 26517900,
    Fax: 91 22 26417893.