Relaxation in land policy a positive step: Mahindra Life

Arun Nanda, vice-chairman, Mahindra Life Sciences, says that the release from the government saying that the transfer of land from the government to infrastructure projects need not go to the Cabinet for approval is a positive move by the Prime Minister. However, he says that it has to be seen how many non-Congress states will implement that policy, as land is a subject matter of the state.

I don't agree with the present form of Land Acquisition Bill as it has been put up. I think a comprehensive Land Acquisition Bill is the need of the day. Below is the edited transcript of his interview to CNBC-TV18. Q: Does it make life easier for land acquirers for infrastructure projects after the government release?
A:  It is a step in a right direction. The release says that it is a policy, but as a matter of fact, land is a subject matter of the state and how much will the non-Congress states follow this policy will have to be seen. It does not solve my problem. Q: Do you feel that the government is trying to move on things, are you hopeful they will be able to accomplish something or internal opposition, actual opposition from BJP do you think will continue to be a hindrance till UPA exists?
A: All these are positive signals and you will see lot of developments. You will see more of low hanging fruits which do not require Parliament approval.
Some non-Congress both within and outside the UPA has opposed, the land Bill and reform Bill. Inspite of that the PM suo moto issuing this circular is a sign that better things will follow. Q: Doesn't this remove one big obstacle as the central government is a bigger player in terms of land acquisition, transfer or alienation that the individual state governments – so in the case of business or development friendly state governments this would be very positive?
A: Yes. It will be positive. It will fall where the land is owned by the central government. Q: It is not administratively immediately a positive?
A: No. I don't think this has any administrative validity. It is just a general guidelines. I don't think there are PPAC (Patent Public Advisory Committee) committees in every state. Q: You have been eluding to better things to come. Do you think there is anything material that you can think of right now which the government can do to elevate?
A: I am sure that you will see some roll back like GAAR which they have done and maybe an out of court settlement for Vodafone. More than policy the government is trying to give a feel good factor, they are trying to appeal the foreign investors that look this government means business. Q: In the past have you or the industry has had trouble with state governments or has it been an equal amount of trouble with the central government?
A: As far as land is concerned, everybody has boxed up nobody is dealing with land issues. For land we need a more comprehensive statute, which will put things in the correct perspective then things will move. Because this again gives discretionary powers to a minister, it does not say how it will be done.
I don't agree with the Land Acquisition Bill as it has been put up in the present form but I think a comprehensive Land Acquisition Bill is the need of the day. Q: Do you expect fast tracking of the Land Acquisition Bill?
A: After seeing this, I am worried because the fact that the PM did not push the Land Acquisition Bill. The government is looking at more administrative decisions rather than decisions which are required on the floor of the Parliament for passing a Bill.