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Modi government looks to amend Land Acquisition Act to make it industry friendly
The Economic Times, 19 Dec 2014, New Delhi: The biggest bottleneck for all investments in India are seen to be the new land laws, and in a bid to address this concern Prime Minister narendra Modi on Tuesday held a high-powered meet on the contentious Land Acquisition Act with secretaries of Urban and Rural Development and Finance. ET Now sources said that the meeting was aimed at finalising the amendment to the recently enacted Land Acquisition Act.
Sources said that dilution of compensation clause – one of the key tenets of the Act requiring acquirers to pay 4 times the market price in rural areas and twice the market price in urban areas to land owners – is one of the options that was discussed. Dilution of consent clause – which seeks consent of 80 per cent of landowners for acquisition – is a key area of focus.
The Land Acquisition Act is considered to be a huge pain point for large scale industrialisation projects and the government is keen to table the Amendment in the Budget Session. The big concession that is being deliberated upon is allowing acquisition of multi crop land by acquirers – something that is currently not allowed.
Sources further added that the changes will only be applicable for large scale industrialisation projects; not for real estate companies. Change in definition of family members and land owners for purposes of rehabilitation and resettlement is also being considered.