PESHAWAR, Oct 22: The NWFP government has decided to allot some 17,500 acres of state land, owned by various departments in Dera Ismail Khan district, to the Pakistan army, official sources told Dawn.

The matter remained under discussion for quite some time between the NWFP government and the army. Initially, the army had asked for 20,000 acres in Dera Ismail Khan for army personnel and the families of those who died in service.

The provincial cabinet, in its meeting held on April 18, 2001, according to sources, had decided that in response to the request the army would be provided land on lease and not on allotment basis. But the army kept on pressing for allotment.

The provincial cabinet on Oct 10, 2001 approved allotment but at rates higher than those charged in the case of lease contracts.

But, the new rates being suggested by the provincial government, said the sources, appeared to be much less than the market value.

“As some of the land is situated in the irrigated area hence it could not be allotted at the same price as un-irrigated area,” said the provincial minister for revenue, excise and taxation Amin Ullah Gandapur.

He said that on Oct 10 the provincial cabinet meeting also approved the NWFP’s adoption of Punjab government’s Produce Index Unit (PIU) rates - to help the NWFP charged improved rates against the land (required by army) situated in the irrigated area.