This refers to Vinayak Chatterjee’s column “How the land lies for industry” (Infratalk, November 21). Industry’s concerns about the impact of the increased cost of land acquisition needs to be addressed. But, at the same time, it will be unwise to over-estimate the cost impact. Also, if an industrial unit wants to acquire extra land for future expansion, say, after ten years, it should be ready to pay a higher price for it. Naturally, the price to be paid for such extra land should be based on the estimated land value at the time of buying it.
In order to bring barren land under cultivation, we need to provide attractive incentives to industry. For example, if an industrial unit desires to bring under cultivation fallow or barren land in the same district in which it is located, it should be allowed to do so. Subsequently, the industrial unit should be able to barter such land for its land requirement for expansion. If necessary, it should be in a position to sell such land and when it does so it will be able write-off whole or part of the cost of land originally acquired. This may be an indirect corporate tax concession, but it is needed to address the issue of increased cost as a result of passing of the proposed Land Acquisition, Rehabilitation and Resettlement Bill in Parliament.
Narendra M Apte, Pune
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