New Delhi, 29 August 2013

The Congress-led UPA government today passed the Land Acquisition Bill in Lok Sabha. Industries say they welcome land acquisition reform but fear the measure could push up property purchase costs by at least 40 to 60 per cent, making industrial projects financially unviable and sharply escalating housing costs.

The proposal establishes new rules for compensation for land acquired for infrastructure projects and industry.

The legislation replaces a more-than-century-old law – the colonial-era Land Acquisition Act, 1894.

The most important feature of the bill is that it requires developers to get the consent of up to 80 per cent of people whose land is acquired for private projects.

For public-private partnerships, the approval of 70 per cent of landowners is mandatory.

The proposal asks for compensation of up to four times the market value of land in rural areas and two times the value in urban parts.

The legislation includes resettlement and new skills training for people whose land is acquired.

In a statement, business lobby group the Associated Chambers of Commerce and Industry of India (Assocham) said getting consent from 80 percent of land-holders “will be very difficult, if not impossible.” India’s economic growth slowed to a decade low of 5 percent in 2012-13 and the rupee has lost over 20 percent of its value during the last three months. It hit an all-time low of 68.85 against the dollar on Wednesday. Gross domestic product (GDP) figures for the first quarter of 2013-14 are due to be released on Friday.

“The cost of land acquisition is likely to increase 3-3.5 times, making industrial projects unviable and raising costs in the overall Indian economy,” said Kris Gopalakrishnan, President, Confederation of Indian Industry.

Reactions

2.) The #Land #Reform #Bill will ensure that our Politicians & their Friends get atleast 4 times the market value for their land.

— I_am_the_mirror (@I_am_the_mirror) August 29, 2013

Will industry b able to buy land at affordable price: Also give good price to farmer?Hope this bill does not becom anti-land purchase bill?

— Kiran Bedi (@thekiranbedi) August 29, 2013

80% approval clause for private projects in Land Acquisition Bill – new infra projects will be stalled. Price of existing infra will rise?

— Akhilesh Mishra (@amishra77) August 29, 2013

Sushma praises Jairam: "Like the way he has pursued this Land Bill." BJP MPs thump tables in Lok Sabha. Updates here http://t.co/eaxgIYUC72

— NDTV (@ndtv) August 29, 2013

Now that Jairam has pursued the Land Bill, the Land Bill will pursue us.

— Bibek Debroy (@bibekdebroy) August 29, 2013

Because they fear losing votes, no party willing to oppose negative provisions of land acquisition. In private conversations they curse bill

— Rahul Kanwal (@rahulkanwal) August 29, 2013

Swaminathan Aiyar: Land Acquisition Bill is a Luddite throwback to 19th century http://t.co/VB9V1LNbaj

— EconomicTimes (@EconomicTimes) August 25, 2013

A list of changes to the Land Acquisition Bill approved this month by the Cabinet http://t.co/XRRZAlY2Iu Some tenants also get rights now

— Pilid Lao (@cbcnn_Pilid) August 14, 2013

PM's dream- Nuclear Deal. Sonia's dream- FSB. Rahul's dream- Land Aquisition Bill. Obama's dream- FDI Retail… UPA mission accomplished !!

— Stop Corruption (@hang_d_corrupt) August 29, 2013

If Land Acquisition Bill is tough in industry, then partly industry is responsible. Why did IT companies became land sharks?

— Aggressive Aam Aadmi (@bharat_builder) August 29, 2013

Land will now become a highly scarce commodity. Time 4 industrialisation & urbanisation to go vertical. Higher FAR 's are the way out.

— Amitabh Kant (@amitabhk87) August 29, 2013

@amishra77 Promoters of projects that require say 10 acres look for and demand 100 acres. It's a mindset issue too. Greed is overwhelming.

— Kanchan Gupta (@KanchanGupta) August 29, 2013

@thekiranbedi It's his own UPA Head who has sunk the economy not Judiciary/CAG! Vedanta Posco Lavasa Vodafone now Land Bill who's done it?SG

— Shirish Chaudhry (@shirishchaudhry) August 29, 2013

Things you must know about the Land Acquisition Bill

Land Acquisition Bill is a Luddite throwback to 19th century

Land Bill gets a makeover to woo Opposition(why BJP supported the bill tabled today?)

Land bill may dampen India’s growth dreams

UPA’s legacy: Disasters like Food Security Bill and Land Acquisition Bill