Government troubled by high land cost
Among several infrastructure sectors – from road, to railway and power, there is a growing screech against the provisions of a new land acquisition law fearing a three-fold jump in acquisition cost due to the new legislation.
The road transport and highways ministry has asked government to increase budgetary allocation for land acquisition, whereas the other ministries are just fretting over the issue. The ministry has also recommended in a letter to the Cabinet secretariat that the government can seek advice from other ministries such as heavy industries and power on how to deal with this issue.
National Highways Authority of India (NHAI), which is responsible for major land acquisition for road projects, in an assessment shows that the under the new law, payment for land is likely to increase four-fold in rural areas. From the current level, it is likely to be double.
Going public against the new law, the department of industrial policy and promotion has already raised the red flag with Secretary Amitabh Kant, Apart from the highways ministry. Ever since the new Land Acquisition Act came into being, Land acquisition for roads, ports and similar other economic activities has not been happening.
In an industry gathering Kant alleged, on account of the Act, A number of road and port projects are stuck up and there is an urgent need to fast-track road and port projects, which are possible only if necessary amendments are made to it.
As of now only the industry was raising concerns over the law, but these have been dismissed by the government.
The aim of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act is to make sure that the owners receive fair compensation for the taken away from them for various projects.
A road ministry source said, till January 2015, we are exempted to implement the law. But unless we have additional budgetary allocation, it will be tough to meet financial requirements as per the revised norms which will be done by the next year. NHAI obtained around 6,000-7,000 hectares of land annually, and releases about Rs 7,000-Rs 8,000 crore on an average.
Since land acquisition in highway projects are linear in nature and do not displace a village or a community as per the sources the agencies don’t need to conduct social impact assessment. But for resettlement and rehabilitation of the affected people, it has to pay certain amount prescribed in the law.
Source: Times of India
Amitabh Kant, Cabinet secretariat, economic activities, Government, heavy industries, infrastructure sectors, land acquisition, National Highways Authority of India, Power, Railway, Rehabilitation and Resettlement Act, Right to Fair Compensation and Transparency in Land Acquisition, Road, road transport and highways ministry, Rural areas
