Indian industry has given its vote of confidence to the new Land Acquisition, Rehabilitation and Resettlement Bill passed by the Lok Sabha on Tuesday expressing optimism that it would give a much needed boost to manufacturing and infrastructure projects.

While some say that the land acquisition Ordinance, in its original form, would have served the cause of the industry better, there is overall relief that the amendments made had not watered down the Ordinance too much.

However, corporates are not ready to celebrate yet. Most believe that the Bill would face its real test in the Rajya Sabha, where the government is in a minority.

“The industry was expecting a tougher Land Bill, but this is definitely a good start. At least something has been passed and we have taken a step closer to achieving ‘Make In India’,” said Mayank Saksena, Managing Director, Land Services, JLL.

But the industry will need the Bill to come into full force first, he was quick to add.

According to Manoj Gaur, Managing Director, Gaursons India, the new Land Bill will help the government improve infrastructure, driving up the overall economy which will indirectly benefit the real estate sector.

“The Land Bill, drafted by Congress was completely impractical,” he said.

The UPA government’s Land Bill had mandated that consent of 80 per cent of affected persons was to be obtained in case of projects undertaken by private entities and 70 per cent in case of projects undertaken through public-private mode.

This had not gone down well with the Indian industry which claimed that it would make acquisition of land very difficult.

Consent clause

As per the new Land Bill passed by the Lok Sabha, consent of affected persons need not apply if land is obtained for national security, defence, rural infrastructure including electrification, industrial corridors and housing for the poor. Neither is a social impact analysis required in such instances.

However, the BJP-led government, faced with opposition from many of its allies, diluted the ordinance a little by excluding social infrastructure projects from the list of exempted sectors.

Industry chamber Assocham pointed out that the real test for the government will be political consensus for its passage in the Rajya Sabha. “Industry on its part would like a balance between the economic growth and the interest of farmers,” said Assocham President Rana Kapoor.

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