New Delhi: Industry body Ficci has suggested that the proposed land acquisition act should apply to the private companies only if they buy 500 acres of land or more, instead of the 100 acres as suggested in the draft law.
"The industry feels the threshold of 100 acres is very low for projects, especially in rural areas and this may only encourage smaller and fragmented holdings particularly in the mining sector. Hence, this threshold needs to be increased to at least 500 acres," Ficci said in a statement.
According to the Draft National Land Acquisition and Rehabilitation and Resettlement (R&R) Bill, 2011, its provisions will apply when private companies buy 100 acres of land or more on their own.
As per the draft bill, the farmers would be given a compensation of not less than twice the market value in urban areas. In rural areas, the same should be at least six times the market price.
The chamber also termed the need of consent of 80 per cent of the project-affected families as tall a requirement and said the per centge level needs to lowered down to 50.
It has also asked the government for flexibility in 'public purpose' clause in the light of investments becoming unviable due to policy induced changes.
In such a situation, if the 'public purpose' is to be kept intact, the same would be quite burdensome on the industry, Ficci said.
For instance, in view of the current global scenario and the "sunset" provisions that are likely to be considered in the Direct Tax Code, many of the investors in Special Economic Zones are considering withdrawing their investments, it added.
Public purpose includes infrastructure and industry wherein benefits largely accrue to the general people. It also comprises strategic purposes like armed forces and national security, besides for health and educational schemes.
Many of the developers have even sought denotification of SEZs which have already been approved by the government, the chamber said.
Further, the proposed bill specifically provides for return of land, if acquired land is not put to use for the purpose for which it was acquired within a period of five years, Ficci said, adding that this would require some definition or clarification of what is meant by 'not used'.
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