Land ordinance can give flagging economy big boost
The government's decision to bring in the land ordinance can push Prime Minister Narendra Modi's Make in India campaign and improve investor sentiment as it will foster land acquisition of the proposed manufacturing hubs and speed up execution of infrastructure projects.india Updated: Dec 31, 2014 00:47 IST
Modi government in the last six months had brought over 40 amendments to environment norms to make it business friendly and now has given relaxation in the land acquisition process considered an impediment in setting up projects for development. The government believes the exemption to five sectors from mandatory consent and social impact assessment will create a balance between farmer welfare and development.
The decision will provide a fillip to the efforts of the Centre and the state governments to development social infrastructure - schools and hospitals -with the help of private players. The HRD ministry has already finalised the proposal for building 2,500 schools under the PPP model. The ordinance may help the Odisha government to speed up land acquisition for Posco Steel Plant in Jagatsinghpur, the country's largest foreign direct investment. Government sources say that exemptions will help the state governments to acquire land for setting up manufacturing hubs and economic zones.
The ordinance would result in faster clearances and acquiring land for mega airport projects across the country. Greenfield airport are to be developed in Navi Mumbai and Mopa (Goa).
Airports Authority of India plans to develop 50 low-cost airports all over the country.
Shipping ministry officials said the exemption would expedite Greenfield port projects such as Durgarajapatnam in Andhra Pradesh and Sagar Island in WB.
Highways were exempted from the two clauses in the new Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. Similarly, the 2,800 kms dedicated railway freight corridor wouldn't get affected as there is a separate law for it.
First Published: Dec 31, 2014 00:41 IST