Land Acqusition Bill to hit Economy, Industry, Infra Projects

[dheerajjain]

Jawahar Lal Nehru said that "Industries are the temples of modern india". But, for Sonia Gandhi and Manmohan Singh, Sticking to Chair and unlimited corruption seems to be only temple. With Economy already under severe pressure, new Land Acquisition Bill can break it. Vote Bank Politics is played to the maximum ignoring hard realities that indusrty is facing.

http://www.business-standard.com/articl ... 064_1.html

India Inc labels land Bill anti-industry

'Land price to go up many times, infra projects to be delayed, economy to be hit'

India Inc, already braving an uncertain economic environment and low investor confidence, gave a thumbs-down to the land acquisition Bill, cleared on Thursday. The second legislation in a row aimed at aam aadmi, after the food Bill on Tuesday, prompted the corporate world to scream "anti-industry".

Companies were united in giving their verdict that the move was likely to push up land prices, thereby hitting industrial projects and the overall economy.

According to Confederation of Indian Industry (CII) president S Gopalakrishnan, the cost of land acquisition is likely to increase by three to three-and-a-half times, making industrial projects unviable and raising costs in the overall Indian economy. "Industry has serious concerns on some of the provisions of the Land Acquisition Bill," he added.

Indicating the frustration of India Inc, Rahul Bajaj, chairman, Bajaj Auto, argued that industry might look abroad for expansion now. "Hundreds of countries acquire land but these countries do not make it so difficult for industry to acquire land as this bill proposes to do. I fear industry may be forced to look abroad for expansion and diversification."

DLF group executive director Rajeev Talwar said with land acquisition getting difficult and time consuming, prices would shoot up. "We have got huge land parcels already. But if the new law makes land acquisition difficult and time consuming, the value of land will go up and ultimately impact the prices."

In the current form, it will delay the land acquisition process further, said Talwar. "If land availability is in surplus, then one would make affordable projects but if its availability is curtailed, one would be forced to raise property prices."

GVK group chief financial officer Issac George agreed project costs for companies would go up, and so would cost of houses for individuals. "So, I have my reservations on whether it's pro-industry."

Despite the government thrust on infrastructure projects, even those would be adversely impacted,said company executives. Rajgopal Nogja, group chief operating officer, HCC, said the legislation would lead to further holding up of the infrastructure projects.

Many projects are already languishing due to the failure of authorities to acquire the necessary land for development. The linear and multiple process norms will make land acquisition difficult, Nogja said, adding companies might have to drop the idea of development in some cases.

Securing consent of 70-80 per cent of landowners, a mandatory requirement in the Bill, might take three to five years, making land acquisition a herculean task, according to the HCC official.

Companies also indicated that the legislation would bring in a high risk of multiple litigations.

Supertech chairman R K Arora also said land acquisition process would be delayed further as consent of 70 to 80 per cent owners would be required. "It will impact the overall growth in all the sectors." Arora added house prices would definitely increase.

It is better to give back farmers some portion of developed land than outright compensation, quipped Lalit Kumar Jain, president, Confederation of Real Estate Developers Association of India.

[AmitSudan]

It just a vote politics they have nothing to do with Aam Aadmi welfare? There are so many thing that can be implemented to safe guard the interest of common men of India.

To some extent its good because the farmers or land owners will get the fair price and government will not be able to push them for sale of their lands but it will also have the adverse effect...that the infrastructure cost will increase substantially. Accordingly the impact on Aam Aadmi will increase in coming future.

As of now we really need the strong reforms that can curb the corruption and more transparency in the functioning of the government which seems to be lost specially in Haryana.

[yadav_ajay]

I differ on the post about slow down of industry/development due to Land acquisition bill.

Do u know we were still using (Before this bill) Land Acquisition Act, 1894.

All bills and policies are being made after independence of India. Why only that Bill was pending.

Are we still living in British rule, NO.

So, this bill was much needed to replace old bill . yes, you can say timings are not good.

In my opinion, this bill must be proposed long back in 2000..or so, where it was actually started in NDA time.

It will give clear picture to Farmers and industries and will resolve most of the issues (Subject to Adaption of laws by Respective States).

Don’t always think that Farmers are anti- development and don’t want to give their land for Public purpose for development.

Somehow (to some extent ) farmers are also right, they are giving their land to Builders at some rate, while for same land Govt. give less rate, even less than Circle rate. Why so.

So, Farmers feels cheated and oppose that move.

It is same way, we feel cheated when Builder say something and demand more than your agreed price or more than Govt. fixed rates.

So, you also protest and go to all level of administration. So, why not farmers can go that way.

It is Govt. or its policies, which Slow down any development or Industry Growth. Not the Farmers or local residents.

What happened in West Bengal, Noida Ext., Bhatat Persool, Orissa, Neharpar..are few examples of wrong Govt. steps and delayed in compensation and Rehabilitation for poor farmers.

Yes, after some time farmers starts more demand and become greedy. But, that can also be countered if Govt. want solution and this bill give some reliefs to all stake holders.

Its long debate on the pros and cons on this Land acquisition bill.

Atlast, I must say this is necessary evil.

[dheerajjain]

Friends, let us go on facts and analysis. I say that Land Acquisition Bill is anti-farmer as it robs them of job opportunities, entrepreneurship, infrastructure and better lifestyle. Govt. wants farmers to remain ignorant, illiterate, backward and poor. In return, keep on bribing with schemes like Direct Cash Transfer so that they continue to vote and keep on continuing UPA corruption and loot of country resources. In India, 60% population is dependent on Agriculture but it contributes just 16% of India GDP. That wide gap in this sector leads to poverty, lack of infrastructure, education etc. for people dependent on agriculture. For growth in earnings, better lifestyle, education, infrastructure for farmers and their children, they need to move away from Agriculture to Industry, Business which are much more productive. Take an example of Gurgaon where maximum land acquisition in Haryana has been done, erstwhile famers and their families drive in luxury SUVs, live in posh homes and running successful enterprises. Same story can be repeated in Faridabad too where Govt. has provided good prices for land acquisition. In US, 300 years back in 1810, 72% population was dependent on agriculture but now it is less than 1% as in 2011 and still it manages to fulfill needs by use of latest technologies. If we take an argument of land acquisition bill of 1894, than we should see our Police Act which controls law and order in India is dated 1861 and politicians have no will to change that since that gives them absolute power. And for controlling Real Estate, we even even don't have any legislation.

[naveenarichwal]

Bye Bye To Affordable Homes and Large Townships, thanks to Rahul Baba.