Tree Cut Compensation for infrastructure

compensation to land ownwer for tree cut for infrastructure projects

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KERALA STATE ELECTRICITY BOARD

2. INTRODUCTION
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3. KSE Board is a statutory body constituted
under Section 5 of the Electricity (supply) Act
1948, which continues as a Distribution
Licensees and State Transmission Utility under
the provisions of Section 172 of Electricity Act,
2003.
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4. The Board has the statutory duty to
generate, transmit and distribute
electricity.
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5. For the purpose of transmission and
distribution of electricity the Board has to
construct electric lines through private
properties also.
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6. For drawing the electric line through private
properties the Board has been given powers
under Section 42 of Electricity (Supply) Act,
1948 and Section 164 of the Electricity Act,
2003 read with Section 10 TO 18 of Indian
Telegraph Act. 1885.(Act 13 of 1885).
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21. The compensation payable is arrived on the basis of annuity principle. For arriving
at the compensation an optimum yield of the trees as well as the period for which
such trees will continue to yield the optimum return are assessed. Compensation
is fixed in such a way that the net fair annual return (annuity) can be made
available to the owner of the land from nearest of the amount of compensation
and a small portion of the amount of compensation. Every year the amount of
interest and a portion of the compensation can be paid to the owner of the land
as annuity. The amount of compensation deposited would decrease year after
year and within the fair period this will be zero. The higher the rate of interest
adopted for working out the annuity, the lesser will be the value of present
compensation. After the judgment of the Hon’ble High Court of Kerala reported
by 1981 KLT 646, the Board has been adopting 10% as the rate of return for
arriving at the compensation.
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23. It is the annual periodical payments for
repayments of capital amount invested by a party.
These annual payments are either paid at the end
of the year or at the beginning of the year usually
for a specified number of years.
If the amount of annuity is paid for definite number
of periods or years, it is called Annuity certain.
If the payment of annuity continue for indefinite
periods, it is called perpectual annuity.
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24. If the amount of annuity is paid at beginning of
each periods or years and the payment will be
continued for definite number of periods, its called
annuity due.
If the payment of annuity begins at some
future date after a number of years, it is called
deferred annuity.
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25. It is the capital sum required to be invested in
order to receive an annuity of Rs.1 at certain
rate of interest.
Years purchase =100/% rate of interest.
Years purchase=1/rate of interest in decimel.
In case of properties whose period of utility is
limited to a number of years, a certain amount
is required to be set aside as sinking fund, to
accumulate the original capital cost.
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26. In the case of YP is reduced to provide both
interest on capital and accumulation of sinking
fund to replace the capital.
YP = 1/(i+s)
Coefficient of sinking fund s=i/(1+i)^n-1
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Part 6-BEARING AGE: The bearing age of fruit bearing
trees shall be normally adopted as shown below subject
to variations depending on local conditions
Coconut trees 60 years
Arecanut trees 45 Years
Pepper vines 30 years

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NON – BEARING TREES : Compensation for young
non bearing coconut trees and pepper vines shall
be assessed according to the tables prescribed
under section 13 of the KCT I Act 1958 from time
to time.
TRANSPLANTED TREES: Compensation shall be
paid for trees marked to be cut if they are
transplanted between the date of marking and
the date proposed for cutting them.
TIMBER AND FRUITS: Timber, trunks and fruits of
the cut trees shall be given to the owner of the
trees under proper acknowledgement, with out
deduction of their value from the amount of
compensation due to owner

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SARPAKAVAUS:Where “Sarpakavus” is to be
shifted on account of the cutting of trees in them
for the construction of lines compensation shall
be paid for the trees to be cut and the charges for
shifting and the traveling allowances to be paid
for the to and fro journey of the Nambi of Pampu
Mekkattu Mana. Vadama Village. Mala shall also
be paid. The charges for shifting consist of the
cost of the articles required for the puja and the
amount to be paid to the Nambi helpers.
FRUIT BEARING TREES: Compensation for mango ,
tamarind and cashew trees shall be payable at ten
times the of their annual yield.

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RUBBER TREES: Generally 250 trees are planted in
a block of 1.5 acres. Total life of a tree is about 32
years. The tapping period is 25 years from 7th
year after planting. Maximum yield is from 11th
year to 22 year. Average number of days is
estimated between 100 days to 200 days. In case
of bud variety the average yield is 6 lbs per tree.
Expense of maintenance tapping, processing,
marketing etc comes to 60% of the gross yield.
The net yield will be 40% i.e. 1.6lbs per tree.
Market value of rubber during the respective
period of cutting is to be ascertained from the
District Rubber Marketing Society.

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NON YIELDING RUBBER TREES: The
development cost of 1 acre of rubber (166
trees) up to the yielding stage shall be paid in
consultation with Rubber Board

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Damage to standing crops Where standing
crops are damaged by line construction
work necessitating payment of
compensation the Asst.Engineer’s staff
shall furnish to the Executive
Engineer/Deputy Chief Engineer. Complete
detail of the nature and extent of crop
damaged to enable the Executive
Engineer/Deputy Chief Engineer to assess
the compensation payable. The details may
be furnished in the notice (Appendix II)
used for tree marking.

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Dismantling of buildings and structures
and wells put out of use. Where building
and structures are dismantled and wells
are put out of use by line construction
work, the Assistant Engineer’s shall
furnish to the Executive Engineer/Deputy
Chief Engineer /Dy.Tahasildar the details
of the Buildings & structures dismantled
and wells put out of use to enable him to
assess the market value of the buildings
and the structures so dismantled and the
cost to re-dug the well so put out of use.

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CUT CERTIFICATE :When the trees are
cut,the certificate in the notice in the
form in Appendix II notice (3rd copy) shall
be duly signed by the Asst.Engineer
showing the date of cutting and send to
the Executive Engineer/ Deputy Chief
Engineer

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Part 7-AWARD ENQUIRY. After completing the
valuation statement, Award Enquiry will be
conducted by the Executive Engineer/ Deputy
Chief Engineer. The notice of Award enquiry
shall be served on the owner of the trees in
the Appendix III.
PASSING OF AWARD . The award shall be
passed by the Executive Engineer/ Deputy
Chief Engineer. The award statement shall
then be forwarded to the Deputy Chief
Engineer if the award is passed by the
Executive Engineer and to Chief Engineer
transmission concerned if the award is passed
by the Deputy Chief Engineer.

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SCRUTINY OF VALUATION STATEMENTS & ISSUE OF
CHEQUE. The award statement forwarded by the
Executive Engineer/Deputy Chief Engineer will
checked by the Deputy Chief Engineer/ Chief
Engineer Transmission.

PAYMENT OF COMPENSATION: The date and place
fixed for the disbursement of the compensation
shall be intimated to person entitled to receive
the same in the form in Appendix IV. Payment will
be effected by Deputy Chief Engineer/Executive
Engineer
PAYEES RECIEPT: When Compensation amount is
paid, the payees receipt shall be taken in the form
Appendix V.

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Part 8-REGISTER OF TREES: A register in the
form given in Appendix 1 will be maintained
by the Assistant Engineer. The columns in
the register to be filled up by the Assistant
Engineer in respect of each trees cut. Date
of cutting of trees is to be noted. Assistant
Executive Engineer will record check
measurement. All other details such as
amount paid, Date of payment, Mode of
payment etc to be entered in the register.

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50. Thanks
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