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