Industry body Ficci has asked major political parties, including BJP, SP and BSP, to reconsider the Land Bill saying the proposed legislation in its present form would have serious implications for economic development.
"Ficci has reached out to the leaders of major political parties like BJP, SP, BSP etc urging them to reconsider the land Bill, as the Bill in its present form would have serious implications for the economic development in the country," a statement issued by Ficci said.
The controversial Land Acquisition Bill was cleared by the Union Cabinet in December last year, making mandatory the consent of 80 per cent of people whose land is taken for private projects.
In the case of Public-Private Partnership projects, the bill makes mandatory obtaining of consent of 70 per cent of the people whose land will be for acquired.
Expressing industry's concerns with regard to the Bill, Ficci said that the Bill envisages a steep increase in the cost of land acquisition from the existing level.
It noted that the cost of acquisition will increase at least five times under the LARR Bill 2011. It is not only the cost but also the administrative burden it entails which will discourage the industry.
Moreover, in terms of process, it is going to take not less than five to six years to acquire even a small piece of land if one goes by the current Bill provisions, it said.
The bill was finalised by the Rural Development Ministry incorporating the suggestion of UPA Chairperson Sonia Gandhi who had asked the government to take the consent from 80 per cent land owners for purchase of land for the purpose of setting up industries and PPP projects.
