(LAND ACQUISITION/ SEZ) Law must have two faces... The land acquisition bill should address the concerns of affected families while considering industry affordability. Land acquisition has emerged as a critical constraint in India’s industrialisation and urbanisation, given pressures on limited landmass for multiple uses. The new law for land acquisition and resettlement and rehabilitation protects landowners and affected families. It must also encourage investments and promote development to create necessary jobs and foster inclusive growth. The current draft legislation, the Right to Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill, 2011, replaces the archaic Land Acquisition Act of 1894. Industry hopes that it will serve as an instrument to impart impetus to sectors like manufacturing, construction and power, which are large employers and critical for the Indian growth story. It is imperative to streamline the land acquisition mechanism in a manner that balances the interests of affected families with industry affordability. It is heartening to note that industry has been included in the definition of “public purpose” in the proposed bill, and that the government will help industry in land acquisition. The government needs to play a prominent role in land acquisition as purchasing land from numerous owners in a single tract is challenging for the corporate sector, especially in the absence of proper land records and with small, scattered land-holdings. Equally commendable is the inclusion of public-private partnership projects for the production of public goods or provision of public services, and the provision of land in the public interest for private companies. Large projects of national interest such as the Delhi-Mumbai Industrial Corridor and National Investment and Manufacturing Zones have also been included in the definition of “public purpose”, as per reports. This is welcome. However, going by reports on the all-party meet on the bill last week, industry has several concerns. First, the agreed compensation package for land acquisition is reported to be four times the market value in rural areas and two times the market value in urban areas. As per CII estimates, the land acquisition cost is likely to increase by 3-3.5 times, severely affecting the viability of industrial projects across the board and eroding the competitiveness of the Indian manufacturing sector. We suggest that no solatia may be imposed over and above the multiplier, and if at all the solatium is to be retained, it could be reduced to 30 per cent and the multiplier for urban areas be reduced to 1.5 instead of 2… (Indian Express 27/4/13)
Posted on: Thu, 06 Jun 2013 07:33:45 +0000
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