Rating agency CRISIL
on recently said Land Acquisition Bill, which was passed by Lok Sabha, will
lead to an increase in the gestation time of projects & overall costs.
The Land Acquisition
bill, which replaces the century-old Land Acquisition Act, 1894, proposes a
unified legislation for acquisition of land & adequate rehabilitation
mechanisms for all affected persons.
With the
rehabilitation & resettlement clauses of the Land Bill, CRISIL Research
expects land prices to increase as the expectation of land owners will be
higher.
"The land
acquisition process will be longer & project gestation period will
increase. Currently, the proportion of supply (which comprises projects of over
50 acres) to total planned supply in the top 10 Indian cities is 25%" it
said.
Consent of 80% of landowners
in case of land acquired by private companies and 70% for land acquired under
Public Private Partnership (PPP) model.
The Land Acquisition
Bill calls for consent of 80% of the landowners in case the land is acquired by
private companies and 70% in case the land is acquired under the Private-Public
Partnership (PPP) mode. The process of obtaining consent shall be carried out
along with the Social Impact Assessment (SIA) study.
The new Land
Acquisition rules will apply retrospectively to cases where no land acquisition
award has been made & to those where land was acquired up to 5 years prior,
but no compensation was paid or no possession took place.
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