New Land Acquisition Bill

The new Land Acquisition Bill cleared by the Cabinet needs to be debated before it comes into force as it may not create conducive environment for economic growth, industry body ASSOCHAM said today.

It gives farmers the right to ask for compensation which is four times the market value of land in rural areas and two times in urban areas, but fails to create any balance between the owner and the one who wants to acquire it, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The Bill is heavily in favour of landlords and does not have a win-win formula for both parties. Hence it needs to be reviewed,” said secretary general D.S. Rawat.

The interests of farmers are protected but the affordable housing requirements of middle class have been completely ignored, he said adding the land cost will go up by 60 to 80 per cent because of higher compensation offered to farmers.

At the same time, the 90 billion dollar Delhi Mumbai Industrial Corridor (DMIC) project – which is aimed at developing high speed freight line, ports and airports connecting the country’s political and financial capital – will need huge land. “If the land acquisition process is stuck in negotiation without government intervention, the project can hit a roadblock.”

More worryingly, there is no clarity as yet on the cost of rehabilitation and resettlement (R&R) issues. “Land acquisition is an unavoidable necessity for rapid industrialisation, employment generation and poverty alleviation,” said Mr Rawat.

The land acquisition framework should encourage free market forces with direct negotiations between buyers and sellers. The government should intervene only when it is acquiring land for its own purposes, he said.

Land acquisition should be facilitated in open market with government’s role being restricted only to providing information on which parcels of land are available for industries, housing and special economic zones.

“Rapid urbanisation and industrialisation create more jobs than agriculture does. With per capita agri production falling, a stagnant index of crop production and heavy dependence on monsoons, a large number of farmers want to move to other sectors,” said Mr Rawat.