)
When Sajjan Jindal, Chairman of JSW group, walked into Nandgoan in Maharashtra this Sunday (September 15) to scout for land for a port project, he was in for a surprise.
Over 100 villagers stopped his car and made him write an undertaking that he will not set up the port project which was threatening their livelihood and homes.
Jindal was planning to set up an all weather Rs 10,000 crore port project and with local villagers now opposing the project, it will be a long way ahead for JSW to acquire land for the project. The land bill approved by the Parliament had made lives of entrepreneurs like Jindals more difficult.
India Inc leaders say it’s time the government listen to their suggestions to dilute the norms especially with regard to 80% consent required from land owners and on increased compensation.
But with a general elections coming, CEOs also warn it will be difficult to expect any change in norms for the next one year till a new government is firmly in saddle. “Getting 80% of land owners to sell land will be next to impossible – especially as it is difficult to trace upto 15% landowners in any patch of land,” says CEO of a real estate company.
CEOs of infrastructure sector say that many projects across India are stalled as land clearances are still not in place. Vedanta had to abandon its bauxite mining project in Lanjigarh Orissa as local tribals refused to part ways with land.
The new land bill will spur PPP or public-private partnership projects as only 70% of land owners consent is required for PPP projects. The new land bill will also encourage leasing of land instead of buying land directly from the farmers, say corporate lawyers.
Another issue which is worrying CEOs is the return of land if a project fails to takes off in 5 years. This provision, CEOs say, is unnecessary as many a time a project fails to takes off for reasons not in control of a company. This could be not getting permission from the government, to lack of environmental clearances, litigation and/or a change in the economic conditions.
“We advise the government to do away with this condition to return land in 5 years,” says Ajit Gulabchand, CMD of construction firm.
As per the new bill, the definition of “public purpose” is restricted to acquisition of land for strategic purposes vital to the State, and for “infrastructure projects” and no consent is required in cases where the land is being acquired by the government for public purpose projects or for its own use (including PSUs/ corporations) in areas such as defense, railways, highways, ports, power, irrigation, housing for the poor, then such a consent is not required. India Inc wants same provisions for similar projects undertaken by the private companies also.
Finally, as the higher compensation clause under the land bill will make any projects expensive, CEOs say the compensation should be reduced so that project can be made viable. L&T officials estimate that project cost of Navi Mumbai will go up Rs 4,500 crore with the compensation clause of the new land bill.
But the big question now is: Is the government listening?
