India Inc to feel pinch of costly land

New Delhi: With the new Land Acquisition Act coming into force on Wednesday, the government has sought to allay apprehensions of the industry, saying there is no bar whatsoever on purchase of private land.

“You want land? Go buy the land,” rural development minister Jairam Ramesh said when asked about his message to private industry on a day the new law came into force.

Investors had expressed apprehension that the new law, which replaced over a century old act, would make land acquisition more expensive for industrial and infrastructure development.

Ramesh said that the new act applies only to the land acquired by Central and state authorities for any public purpose. He, however, said that there is no bar whatsoever, on purchase of private land.
According to him, industry must look beyond land acquisition by the government and explore land purchase opportunities.

“From January 1, 2014, onwards, no land can be acquired under 1894 Act. All land will be acquired (by governments) under the new Act,” the minister said, asserting that the new law was enacted to address “widespread and historical injustices” done to tribals and farmers who were subjected to forceful displacement while acquiring land using the old Act and land acquisition more transparent.
Mr Ramesh said from today, the government will not acquire any land for private investors for their private projects.

“A private builder building condominium cannot expect government to acquire the land. Why should government buy land to a private builder to build country homes for the well-offs,” he said.
The Act to provide just and fair compensation to farmers was passed by both Houses of Parliament last year with overwhelming majority during its Monsoon Session.

Mr Ramesh said if a private project is fulfilling a public purpose, 80 per cent consent is required. “If it is a PPP project, 70 per cent consent is required,” he said, adding that no land acquisition can take place without provisions for Rehabilitation and Resettlement.

He said the rural development ministry is now taking steps to ensure preparation of rules that are intended to bring clarity to certain key processes defined in the law.

He said that the retrospective clause in Act will apply in three circumstances. According to him the clause will apply where Land Acquisition proceedings under the old Act has started and the award has not been announced.

The clause will also apply in a circumstance whre the award has been ann-ounced for the acquired land five years ago but its physical possession has not taken place. It will also apply in case land acquisition has started five years ago under the old Act but a majority of the farmers have not got the compensation.