New Delhi: Expressing concerns over certain provisions in the land acquisition bill, industry body CII on Tuesday said a few proposals in it may push up land prices and severely affect viability of projects.
"Agglomerating land from numerous owners is not a task which the corporate sector can do effectively, especially in the absence of proper land records and with small, scattered land-holdings.
"Therefore, government intervention becomes necessary in assisting such land acquisition," CII Director-General Chandrajit Banerjee said in a statement.
The monsoon session of Parliament, which will start from tomorrow, is likely to take up the Land Acquisition and Rehabilitation & Resettlement (LARR) Bill 2011.
"As per the provisions stipulated in the Bill, cost of land acquisition in the country is likely to increase by 3-3.5 times, severely affecting the viability of industrial projects across the board and this may erode competitiveness of the manufacturing sector," it said.
It also said that the R&R costs are likely to go up by about three times compared to the prevailing practice as per the proposed package.
CII suggested that instead of using the broad-term "affected families" needs to be clearly defined and according to their losses, suitable compensation package should be laid down.
It said that the proposal regarding acquisition of irrigated multi cropped land would severely affect mineral extraction projects as minerals occur naturally and hence their locations cannot be chosen.
The provision of consent of 80 percent affected families should be reduced to 60 percent, it said.
"Going ahead, a balanced approach to land acquisition that takes care of needs of all stakeholders and promotes industrialisation and inclusive growth is the need of the hour," it said.
First Published: Tuesday, August 07, 2012, 19:18