Numerous statutes, laws hamper infra initiatives: 3i Asia

Anil Ahuja, head-Asia, 3i Asia, explains to CNBC-TV18 that desire to initiate infrastructure projects is hampered by numerous statutes and laws. Though he welcomes the PMO's press release on land transfer policy, Ahuja adds that increased and significant legislation is the need of the hour to boost land use and acquisition.

Below is an edited transcript of the analysis on CNBC-TV18.  Q: I assume you have seen the PMO's press release which has announced relaxation in the land transfer policy for government-owned lands. Will this ease the process for projects where government land is involved?
A: Yes, I think there will be some improvement, but I don't think that is the key issue. Frankly, the concern is relating to the number of rules and regulations that people need to follow, the number of gram panchayats and gram sabhas that need to be called before the land which is not government land, can be acquired.
India needs very significant legislation on land acquisition and land use. This is definitely a step in the right direction, but I am not sure if this is going to effect the sweeping changes to the current land problems. Q: So does this resolve one out the numerous other problems regarding land?
A: Not just one, maybe three or four. Q: After your meeting with Coal India and the coal minister, do you feel the government and the polity trying to move ahead? Do you expect any significant decision to be taken in the next few months that will actually accelerate infra projects?
A: In my opinion, there is a desire to move ahead at the ministerial level, the initiative is lacking, hampered by numerous statutes and laws. So even if the power, environment, the Railways and coal ministers sit down together and decide to open a mine and move coal from the mine to a power project, they actually can't do it. Q: Do you think the signing of the 80% trigger-level is going to be very positive for power projects? Will Coal India have to import coal?
A: I don't think any of these things are going to happen. I think the intention is clear, but its far from happening. Q: What do you think about Coal India's output?
A: Of Coal India's year-end reserves of 70 million tonne in the first quarter, it has already used up 15-16 million tonnes of ground reserves. So the production target for this year is only going to be 460 million tonne. Q: Would the PMO’s press release affect transfer land owned by ports, the Railways and large public sector undertakings?
A: I think the directive will absolutely ease transfer of governmental land.