The Standing Committee on Rural Development on Thursday tabled its report on the existing Land Acquisition Act. The new version proposes some radical changes, and virtually does away with acquisition of land by the State for promoting private enterprise, except for infrastructure and social sectors.
The revised Bill limits land acquisition to infrastructure and social sectors, and even those will have to go through the State.
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The revised bill proposes changes to the way land is bought and sold in India, both by the government and industry, for for-profit ventures, saying such acquisitions must be done through the open market and at market prices.
It also recommends that public sector enterprises with a profit motive be barred from acquiring land with the State’s help.
The new bill also shifts the onus of clearing acquisitions to the most basic unit of the Parliamentary system. Under the suggested rules, the permission of the Gram Sabha – or all the residents of a village eligible to vote for the Panchayat – is a pre-requisite for land acquisition.
The bill also allows state legislations to set their own ceilings for relief and rehabilitation packages in instances of people being displaced. The definition of food security is also being expanded to include rain-fed areas.
However, according to Adi Godrej, President of Confederation of Indian Industry (CII), the recommendations would adversely affect the industry, specially the manufacturing sector.
"Rather than addressing concerns of the industry over the provisions of compensation and consent required for land acquisition, the recommendations of the Standing Committee do not seem to be taking into account the need of the industry, thereby, leaving it to fend for itself. This will make the land acquisition more complex & difficult leading to slower growth in industry and therefore, the economy," he said.
He also said that the ban on acquisition of agricultural land for Public Private Partnership (PPP) would be detrimental to the cause of infrastructure development in the agrarian states.
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