Assuring that there is light at the end of the tunnel, Union Minister Nirmala Sitharaman stated that the government would consult all stakeholders to make the land acquisition law an “enabler” rather than a “stifler”. The commerce and union minister’s comments came amidst industry’s rising concern over existing land and acquisition Act, which made acquisition of land next to impossible.
The Land Acquisition Bill, which was passed during the previous UPA regime with then opposition BJP supporting it, provides for “fair compensation” for acquiring farm land for industrial projects. However, this without any surprises made land acquisition harder, with states coming out openly against the law, citing it had adversely impacted the process of acquiring land for infrastructure projects.
With this, Rural Development Ministry has already suggested a number of amendments to the Land Acquisition Act that will dilute provisions such as mandatory consent of at least 70% locals for acquiring land for PPP projects, and 80% for private projects. However, it is unlikely that the government would be able to table amendments to the Land Act during the winter session since it would require more time to get the Opposition on board, on its proposal to simplify land acquisition rules for PPP projects.
