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VISAKHAPATNAM, June 30

THE hitch in land acquisition for setting up a special economic zone in the Atchyuthapuram and Rambilli mandals of Visakhapatnam district could not be cleared by the high-powered negotiations committee which held prolonged discussions with representatives of farmers and political leaders from the area at the collectorate here.

The meeting was adjourned inconclusively on Saturday. Earlier, meetings had been held twice in Hyderabad to sort out the issue, but to no avail. The farmers are insisting on getting a price of Rs 5 lakh per acre that the officials found to be high and requested the farmers to lower it. More than 9,000 acres of land will have to be acquired in 19 villages of the two mandals to set up the zone.

The Chief Commissioner of Land Administration, Mr P.C. Parekh, Mr K.V. Rao, the Principal Secretary, Industries, and Mr M.V.S. Prasad, the Managing Director of AP Industrial Infrastructure Development Corporation, sought to persuade the farmers that a generous rehabilitation package would be prepared and implemented for them.

The State Government is under pressure to clear the land acquisition issue, as work has already started on special economic zones in other States. The officials told the farmers to form committees, reconsider the price issue and approach the Government for the last time.

"We have the right to fix the price arbitrarily, but we don't want to do it. We seek to do it with the consent of farmers," the officials said.

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