New Delhi: Land acquisition problems could derail industrial projects worth USD 100 billion (Rs 4.70 lakh crore), warns an Assocham study.
"Delays in land acquisition procedures for industrial
projects are threatening to endanger investment worth USD 100
billion all over the country in near term," the chamber said.
Problems related to land acquisition have dented the
image of number of states as cordial industrial destinations
to take up projects efficiently, it said.
It said that due to land acquisition problems, Tata
Motors pulled out its prestigious Nano project from West
Bengal and the world’s largest steel maker, ArcelorMittal, is
"close to pulling out" its USD 20-billion project from
Jharkhand and Orissa, the industry body said.
Citing a study, it said 22 major steel projects worth USD
82 billion in the country are being held up because of
procedural delays in obtaining environmental clearance and
land acquisition.
Some of the major domestic and international players
affected by the delays include ArcelorMittal, Essar Steel,
Jindal Steel & Power Ltd, Posco and Tata Steel, it added.
"At least 70 per cent of 190 delayed infrastructure
projects have been stalled on account of problems over land
acquisitions, especially the compensation to be paid to
landowners," it said.
Assocham further said escalating cost of compensation for
land is also increasing the cost of projects, thereby
affecting their viability.
The chamber has suggested several steps including setting
up of a national land bank, introduction of land acquisition
bill in Parliament to solve the land acquisition problems.
Bureau Report
First Published: Tuesday, October 06, 2009, 20:41