India Inc has already warned that the Land Bill introduced in the Lok Sabha on Thursday will make land acquisition more difficult and industrialisation will take a big hit. CNBC-TV18’s Rituparna Bhuyan shares details.
There was a bit of an irony in today's debate on the Land Acquisition Bill with the BJP, with the pro industry chief ministers like Narendra Modi supporting many provisions that are being seen as anti-industry, but it was the CPI-M which was opposing the bill saying that one needs more consultations.
There are several provisions that have been a cause of concern for the industry, for example compensation which is between 2-4 times rural areas. In urban areas it is about twice the market value which is being seen as a huge hurdle for industrialisation process by the Indian industry.
Secondly, Resettlement and Rehabilitation (R&R) clauses, even the private acquisition above a certain threshold will have to budget for land, housing, employment and annuities above a certain threshold of acquisition. So, companies will have to make that kind of allotment in terms of buying lands.
Also, there is a retro clause. If award for a piece of land has not been made then the new bill will apply which will see higher compensation. So, there are several provisions that are being seen as anti-industry.