The Jharkhand government is working on a plan to simplify land acquisition for investors who face bottlenecks in setting up units.
"If the new act is cleared then it will help in acquiring land in just two months. At present the land acquisition process takes over a year," an official of industries department said.
"A draft for a new act has been sent to the development commissioner for suggestions and corrections. In the new act the state government will directly approach the landowners and bargain with them on the market price of land," said the official.
Currently the landowners are given government fixed price of the land and an additional 30 per cent as compensation. The landowners do not part with their land since the government rate is lower than the market price.
"In the new law we are trying to address the interest of the landowners so that they get the market price and happily part with their land to investors. In the given scenario only a lucrative policy can help the state in getting land for the investors," the official said.
The Jharkhand government is moving cautiously on land acquisition alarmed by the incidents in West Bengal's Singur and in Orissa. In Jharkhand also the political parties are with the landowners and are opposed to any displacement in the state.
The Jharkhand government has signed memorandums of understanding (MoUs) with 45 investors in steel, mining, power and in other sectors. The investors will pump Rs 2.2 trillion in the state.
To translate the MoUs into reality the state government has to acquire more than 120,000 acres of land.
Jharkhand Industrial Infrastructure Development Corporation (JIDCO), the nodal agency to facilitate land, power and other basic needs of investors, has till now cleared the proposals of nine investors. These include Tata Steel, Jindal Steel, Essar Steel and Hindalco.
The new law has been mooted after the government failed to get land through land bank system. Despite the best efforts of the state government, it managed to get only 6,200 acre of land through land bank.