MUMBAI, Aug. 12 -- The state cabinet on Tuesday approved a new formula for calculating interest on delayed land acquisition compensation payable to farmers and other affected landowners, effectively reducing the interest they will receive. Under the revised policy, delayed compensation will attract interest at one percentage point above the Reserve Bank of India's (RBI) repo rate. The government officials said the move was aimed at reducing the financial burden on the state exchequer by containing the escalation in project costs arising from interest payments on delayed compensation. For infrastructure and development projects, the government often takes possession of land before the final compensation award is determined. Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, landowners are entitled to interest if payment of compensation is delayed. "As the existing statutory interest rate differed from prevailing bank lending rates, the cabinet approved amendments to Section 72 of the act. Following the amendment, the interest payable on delayed compensation will be linked to the rate at which the RBI lends to commercial banks, with an additional one percentage point," a release issued by the CMO said. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 provides for interest on delayed payment of compensation under different provisions of the law. Interest is payable at 12% under Section 30(3), 9% under Section 72, and 15% under Section 80....