out the developed plots in 1993 at the rate of Rs. 11 lakhs per acre; which was 57 times the amount farmers received! Joshi started this Bhama Construction Company with two objectives. First, farmers should receive the biggest portion of the consideration realized from the users, and second, the major portion of economic advantage in the form of employment, contracts, investments and ownership should accrue to the farmers. He felt that if farmers came together, developed their own land collectively and also became the partners in the projects that would be constructed on that land as original landholders, it would be a game-changer. This company would be a prototype for similar future development. Financial model of the Company entailed that the farmer would transfer his land to the Company and as a consideration he would get part amount in his bank account and part would be as equity share capital. On sale/lease of plots the sale/deposit proceeds received would be used for development of infrastructure and balance by way of Perpetual Debentures to farmers. The financial instrument of Debenture would insure regular income to farmer. Equity capital would also be transferable and tradable on the stock exchange creating wealth to the equity holders. There was an industrial estate being planned by MIDC near Chakan. Farmers reluctant to hand over their land to the MIDC came to Joshi for help to save their land. Joshi told them that if government has decided to start industries in this belt then nobody can stop it and suggested to them to start farmers’ company for industrial development. Joshi got together farmers from eight villages in Ambethan-Mhalunge area. Bhama Construction Company was formed. They requested the government that along the lines of MIDC, their Company should be permitted to develop their land. The idea was to develop the land and then sell/lease the plots just as MIDC did and get good 300
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Sharad Joshi : Leading Farmers to the Centre Stage
