Allaying fears of domestic industry on the Land Acquisition legislation, the government on Wednesday said the law is not against India Inc and that the corporates should involve local people in the development process.
New Delhi: Allaying fears of domestic industry on the Land Acquisition legislation, the government on Wednesday said the law is not against India Inc and that the corporates should involve local people in the development process.
Minister of State for Commerce and Industry E M Sudarsana Natchiappan said the industry should reach out to people of those areas where they propose to set up projects and explain about the advantages locals can have in terms of employment and development.
He said corporates are raising concerns over the law, saying it would impact them but "it is not the case".
"You have to bring (local) people on board (while acquiring any land for a project)," Natchiappan said here at a CII function.
India Inc termed the Land Acquisition legislation as a retrograde step and said this could have an adverse impact on the country's industrial and infrastructural development.
The domestic industry has also said the provisions of the Bill may push up cost of acquiring land by up to 3.5 times, making industrial projects unviable.
The Bill, which was passed by the Lok Sabha last month, will replace the British era's act of 1894.
"Involve the society. Have conversation with them. You have to work with them. Tell them about the benefits of the projects," the Minister said.
He asked the industry to undertake a specialised study of the area and focus on issues like bringing people under the projects. "How you can make them a facilitator rather than a barriers. Human Resource managers should trained to deal with them".
The Minister also said that the industry view on the food security law that it would put huge burden on the exchequer was not correct.
He said the law would benefit companies in sectors like fertiliser, seed and pesticides.
"You should not have the feeling that we are wasting the money," he added.
The plan is seen as the biggest in the world with the government expected to spend about Rs 1,25,000 crore annually on supply of 62 million tonnes of rice, wheat and coarse cereals to 67 percent of the population.