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LATEST NEWS UPDATES | Land ordinance may be allowed to lapse, govt looks for loopholes in 2013 Act

Land ordinance may be allowed to lapse, govt looks for loopholes in 2013 Act

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published Published on Aug 11, 2015   modified Modified on Aug 11, 2015
-The Times of India

NEW DELHI: With the parliamentary committee examining the land bill failing to reach a consensus, the government is likely to allow the current ordinance to lapse and look to tweak the earlier 2013 law to spur industrialization and infrastructure development.

Fierce arguments between Congress and BJP members over the retrospective 24(2) clause and clause 101 dealing with return of unutilized land ensured the joint committee of Parliament did not finalize its report for submission despite agreement on other amendments to the land law.

The committee on Monday saw Congress insist on a vote which panel chair S S Ahluwalia of the BJP did not want as he desired a unanimous report. Ahluwalia's view that Congress dissent would translate into opposition in Parliament, particularly in Rajya Sabha where the party commands strong numbers, saw the report being put off until the winter session in November.

At one stage, Congress member Jairam Ramesh walked out, followed by Digvijay Singh who said he was keen to bring back his colleague as by then Ahluwalia had retracted on comments that Ramesh had found objectionable. Later, both Congress MPs returned and committee proceedings continued.

Many senior politicians feel the resolution of the land bill may now hinge on the upcoming Bihar assembly election. An NDA victory will boost its political capital and embolden it to push for changes in the bill while a setback may favour the current ordinance's opponents like Congress, Left and Trinamool Congress.

Government sources said the law provides sufficient room that can be used creatively for making land acquisition simpler and more effective. It was also felt that states could also deal with some of the troublesome issues such as Social Impact Assessment, which currently requires up to 52 months, by framing rules that can fast-track the process by setting shorter timeframe of 90 days or six months.

The latest view in the government about the 2013 law is expected to clear doubts of India Inc which has in the past complained that the legislation has made it virtually impossible to acquire land.

They pointed out that the despite the campaign launched by the Congress over the NDA doing away with the consent clause in the ordinance, the 2013 law leaves enough room interpreting "consent" either way. Pointing to section 2.2 of the law enacted by UPA, sources said, consent is required in cases where land is acquired for private companies or for PPP projects, where the ownership of land vests with the government.

At the same time, section 2.1 allows for private companies to participate in infrastructure projects (barring setting up of private hospitals, education institutions and hotels) as long as the government "owns, holds and uses" the land acquired for various projects.

For instance, the UPA law provides for private participation in 17 types of infrastructure projects are allowed within the 2013 law — ranging from roads, power, oil and gas, ports, railways, telecom and water and sanitation.

There is an overwhelming view that the existing law can be tweaked to ensure that there is land available for projects and development work. The sources the private sector could also take part in affordable housing under the 2013 law as the government would hold, use and own the land and can invite the private sector to develop housing for the poor.

Similarly, the government can acquire land for an industrial park or a food park, develop basic infrastructure and then allot land to private sector to set up factories or production units.

"The 2013 law suffers from bad drafting and this can be overcome," said sources.

The Times of India, 11 August, 2015, http://timesofindia.indiatimes.com/india/Land-ordinance-may-be-allowed-to-lapse-govt-looks-for-loopholes-in-2013-Act/articleshow/48430641.cms


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