Ad Here  
June
July
August
September
October
November
 
 
Green crimes galore It’s Karnataka chalo for Amit Shah? A blueprint for the future MOUs worth Rs.10.54 lakh crore signed Time to wake up Infrastructure to the FORE Land scams rock AP & TS Oh, la la. Global meets galore More government apps Stirring the political cauldron Mango Diplomacy Info-Park, more space State under siege Municipal Elections Enticing pest traps Bifurcation yet to end water wars Why the Congress won in Karnataka Bus services hit Flurry of collaborations inked by AP Bhubaneswar IIT cries for completion Wouldn’t the Mahatma like clean restrooms in our cities! City of foaming lakes and fire All these happened in TN… States - Odisha Lingayats get a reminder: it’s poll time Illegal mining of sand State Forward CII to set up tourism bureaus With agriculture at its heart... MCL has a taste of judicial activism! States - Kerala ‘E’ for enterprise Land acquisition policy is ahead of national policy... State of the States Industrial corridors to boost economy Inter-State boundary TN can leverage NLC’s strengths... Nod to cow slaughter bill Of development and welfare AP in better shape Miners asked to pay more Global Investors Meet Post Poned Bringing magic of Rajasthan alive Reducing carbon footprint... Waste disposal model An industrious idea Technology has raised the bar... Deputy Collector Sindhu! Competing for good: Tale of two states Benevolent businessthan... TN to suffer serious loss Monsoon fury Infra boost to the new capital Strike over salary hike A year of Telangana Doubling production and tripling farmers’ income... Homestays, a budding tourism industry Divide & Prosper ODISHA Come to Tamil Nadu where the action is... When business flocks to MP... SIPB clears big proposals A giant push for millets Launch of ins vikrant, India’s first indigenous aircraft carrier Vedanta to close Lanjigarh refinery Promise of a productive year Hype on Hyperloop Tasks for the new government Thalaivaa Kochi Metro Rail Project Enchanting and enterprising Tamil Nadu TN to suffer serious loss Leaky old lorries, mini cabs for techies... A neta at it again! KNPP with the grid KTR releases Annual Report Development depends on land availability... KCR’s I-day bonanza Power for all Winds of change... Pioneering education model Fanciful Rao and tech-savvy Naidu It indeed is attractive for investments States Roundup
 
Development depends on land availability...
The lead taken by Chandrababu Naidu in acquiring land through the new land ordinance is bound to be followed by other states.

On 14 May, the Andhra Pradesh government issued a notification for acquiring land from farmers in the capital region in Guntur district. The ordinance will enable the government to make farmers who are not willing to part with their lands, to fall in line.

There is the urgency to complete land acquisition; the date of foundation laying of the new capital city Amaravathi has been fixed for 6 June. Municipal Administration Minister P Narayana stated : “the government is firm on its stand to build the capital in the identified land. If farmers do not give land under land pooling, it would be acquired under the Land Acquisition Act.”

The government had already informed the court that it would be acquiring lands this way. Already 33,000 acres had been taken through land pooling and additional 8000 acres would be acquired through such acquisition, if the farmers do not opt for land pooling.

Land acquisition for development has been a major problem. For decades, state governments have been acquiring land for purposes it deemed essential. The 2013 Act passed by the UPA government made it more difficult. This in part explains the slowdown of investments in industrial and infrastructure projects and to the reluctance of entrepreneurs, both foreign and Indian, to invest in India. P Chidambaram as UPA’s Finance Minister estimated projects that got stuck were worth over Rs 700,000 crore. Arun Jaitley estimates this higher at Rs 800,000 crore.

I point to a couple of specific instances on land acquisition stalling large investments:

•    In 2001-02 the Tatas planned to set up the Tata titanium project at Tuticorin to produce titanium. They set up an elaborate office with a renowned metallurgist as the managing director. After battling ten years for acquiring land, which they couldn’t, they gave up the project.

•    As early as 1993 Odisha Chief Minister Biju Patnaik dreamt of setting up a slew of steel plants in Orissa to leverage the vast iron ore, manganese and coal resources in his state. He acquired 12,000 acres of land. With liberalisation there was more interest. Several multinationals, including Korea’s Posco Steel and Lakshmi Mittal’s Arcelor Steel, were keen to  set up large capacity steel plants. Posco planned a 12 million tonne steel plant involving at then costs Rs 50,000 crore in 2004. After 11 years, it is still struggling to do this. Lakshmi Mittal and l others gave up their projects.  Tata Steel is the lone project at Kalinganagar that is taking shape. But the cost, originally estimated around Rs 16,000 crore, has shot up to Rs 40,000 crore.

In television debates the Arnab Goswami type circus of  presenting multi viewpoints dominated by representatives of political parties end up as fish market cacophony.

We have pointed out that over all these years urbanisation, infrastructure, factory buildings and social sector projects like hospitals and schools  account for less than 5 per cent of total land area; for all these purposes land is essential and cannot be acquired from the moon.

The average productivity of Indian agriculture is abysmally low. There is enormous scope for increasing productivity by reforming agriculture and providing for science, technology and management. The basic issue of high fragmented small sized land holdings needs to be addressed on priority. Agglomeration of land is an imperative. India has the potential to double food production in ten years and generate huge surpluses through agri exports. Sadly, in all the discussions this issue of vital concern doesn’t find a place.

The lead taken by Chandrababu Naidu in acquiring land through the new land ordinance is bound to be followed by other states. In the present system of larger powers and responsibilities to states, there will be healthy competition to record high growth and improve living standards through increase in job creation. For this, easy availability of land at modest prices is a sine qua non.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com