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NITI Aayog to introduce model law on land lease

31 Mar 2016 Evaluate

NITI Aayog is all set to introduce a new model law on land lease which will improve agricultural efficiency and quicken the pace of industrialization. In September last year, the Aayog had set up an expert committee under T Haque, the former chairman of the Commission for Agricultural Costs and Prices, to prepare a model agricultural land leasing law in consultation with states, keeping in view the need to legalise and liberalise land leasing for much-needed agricultural efficiency, equity, occupational diversification and rapid rural transformation. The draft law is based on the recommendations of the committee.

The draft model Act, which is expected to be put up for stakeholder comments this week will offer flexibility to land owners and tenants to decide on the term of lease and rent, thus making it simpler for the government to lease land for public-private partnership projects in sectors other than agriculture. Further, it will also open up avenues to the provision of land for industrialisation, which is fully within the state's jurisdiction, and allow the landowner to retain ownership of land.

Moreover, it may also help tenants secure short-term credit and other services on the basis of a simpler lease agreement. Furthermore, the model law may also allow automatic renewal of agreement on the expiry of lease period while simplifying the procedure for lease termination within the agreement period. The Centre and state governments will now be able to implement their policies efficiently in the presence of transparent land leasing law.


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