Wednesday, November 18, 2009

Centre asks states to frame norms for land acquisition

Centre asks states to frame norms for land acquisition
The Economic Times, November 18, 2009, Page 9

Don’t Plant Your Factories On Agricultural Plots: Anand Sharma

Our Bureau NEW DELHI

THE CENTRE has suggested to the state governments that they should create industrial land banks from available waste and fallow lands, to avoid confrontation with farmers over acquisition of agricultural plots for industrial purposes.

At the first conference of state industry ministers in New Delhi, commerce and industry minister Anand Sharma proposed that the Centre and the state should work together on guidelines for creation of the industrial land bank.

“Farmers should not be victims of industrialisation. They should be partners in the process,” Mr Sharma said in his address to state ministers.

Interestingly, industry ministers from Bihar, West Bengal and Orissa—the states that have witnessed a many local agitations over land acquisition for industrial purposes—were not present at the meeting, though they were represented by senior officials.

ArcelorMittal’s proposed steel projects in Orissa and Jharkhand and Korean steel major Posco’s plans of entering Orissa are held up due to land acquisition problems. Tata Motors had to shift its base for manufacture of its budget car Nano from West Bengal to Gujarat due to agitation by farmers in Singur.

Some states such as Tamil Nadu have established good practices in respect of planned industrialisation, which merits consideration by others. The minister added that attractive relief and rehabilitation package have to given to people whose land is acquired.

“Use of farm land for industrial projects should be the last resort,” he said. Speaking to ET, minister of industry from Madhya Pradesh Kailash Vijayvargiya pointed out that creating a land bank was a good idea and his state was already working on it. “We have already created a land bank and want to work on it further,” he said.

The idea behind the state industry ministers’ conference, which will now be held annually, is for the Centre and states to come together and jointly sort out problems to make India an attractive destination for investors, both domestic and foreign. According to DIPP estimates, India is likely to attract FDI worth $50 billion by 2012, which could go up to $100 billion by 2017. “If the Centre and states can work in tandem to remove hurdles, it will not be difficult to achieve the target,” Mr Sharma said.

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