The land acquisition Bill in the present form will not solve a Posco-type problem, FICCI President Naina Lal Kidwai has said.
“It’s getting too messy (to secure land for large manufacturing projects),” Kidwai told Business Line in an interview while reacting to high-profile project exits by steel companies in the last two days.
Following delays in securing land and captive iron ore resources, South Korean steel major Posco and Arcelor Mittal had independently announced their decision to exit from steel projects in Karnataka and Odisha respectively.
“It’s clearly a pity. Projects of this size (Posco and Arcelor Mittal) should not suffer because of land problems. One cannot keep them waiting for so many years. Players like Posco have been very patient,” she said.
Kidwai felt that the solution for land acquisition for large projects lies elsewhere in the national investment and manufacturing zones (NIMZ) being developed under national manufacturing policy.
NIMZ could be successful and industry could thrive here as most clearances are taken care under one agency.
Acquiring lands for large projects is not going to be feasible if the land acquisition Bill remains in the current form and gets enacted into law, she pointed out.
“Ideal thing would have been a pragmatic land acquisition bill. This is because not every company will think of new land.
Having said that, some States such as Gujarat and Maharashtra are pragmatic. States are critical,” Kidwai said.
Rethink on Bill
The Federation of Indian Chambers of Commerce and Industry (FICCI) has been making a case for re-think on the land bill.
The chamber has been arguing that the balance lies against industry in the Bill in the current form.
FICCI has been suggesting that the concept of rehabilitation and resettlement (R&R) should not be stipulated when land is acquired by large private sector projects where there is a willing seller and willing buyer.
The apex chamber has been questioning the need for R&R in a private transaction involving a willing seller.