Mumbai: With the industry expressing concerns over the Land Acquisition Bill and Mines and Minerals Development and Regulation Bill, industrial body Ficci Wednesday said the government should revise several provisions.
Regarding proposal of contribution of royalty by mining companies to District Mineral Development Fund in the Mining Bill, Ficci has reservations.
"The imposition of proposed mandatory contribution would raise the incidence of taxation on mining industry significantly, thereby making it an unattractive sector for serious investors," Federation of Indian Chambers of Commerce and Industry president Harsh Mariwala said here.
Ficci's Secretary General, Rajiv Kumar, said, "The 192 large mining companies in the country will move out as they will find it unprofitable."
Regarding land acquisition bill, he objected to the restriction on acquisition of multi-crop land.
"This clause will effectively render about 55 million hectares or 40 percent of arable land beyond the scope of acquisition. This issue needs to be re-examined since most of this land falls in the Indo-Gangetic plains, which encompasses areas of Punjab, Haryana, Uttar Pradesh, Bihar and West Bengal, the most densely populated regions of the country."
He further said the Act should not be implemented on retrospective basis. Mariwala also requested the government to reduce the consent norms for land acquisition to 50 percent.
"The requirement of consent of 80 percent of project affected families is quite a difficult," he said.
On Goods and Services Tax, Mariwala said, "We hope that the government is able to resolve the differences among parties and is able to roll out GST from April 2012 or maybe October 2012."
To a query on the growth, he said, "We have been revising the GDP from 8.5 percent to 8 percent and now 7.5 percent. I think we are going towards 7 percent GDP now."
First Published: Wednesday, November 09, 2011, 22:42