Sunday, August 25, 2013

INDIAN LAND ACQUISITION BILL (2011) TO DERAIL INDIAN AND FOREIGN INVESTMENT

Tejinder Narang



FROM PROSPERITY TO POVERTY— NEW LAND ACQUISITION BILL NOW IN INDIAN PARLIAMENT.
Centre and States both will exercise control on land to be acquired --right from the collector at district level to Chief Secretary of the state with his minions, then  further  to Minister and Chief minister of the State and up to Ministry of Rural Development in New Delhi. Cabinet may come later on. Courts can intervene any time. (70 page draft bill can be seen on the website of Ministry of Rural Development, Govt. of India.)
Can any industry come up with such provisions?? Who will invest in India ? Even “ non- owners” of land are to be compensated --as part of the daily loss of employment to the labour. Liabilities are unlimited for any investor in India.SC/ST—backward classes notified by separate acts-- are to be specially considered for compensation.
Rent seeking is encouraged at all levels. If any Indian company finds this improbable to start any industry with such bureaucratic provisions, will foreign companies do?? Manufacturing that is required to be encouraged for more jobs, value added production,  exports, improved living standards, economic welfare are all negated under this bill.
Economist  Swaminathan  Aiyer  has described the bills in right name "Luddite" throwback to 19th century in the Indian context (Read below the link). He has said it all specially on Social Impact Assessment”—which can never be final or completed and is a part of the environmental clearance.


“Some critics have focused on its high compensation norms. But its worst provisions are for Social Impact Assessment (SIA) reports and mandatory rehabilitation and resettlement (R&R). Every piece of land acquired, no matter how small, will require an SIA, to be later reviewed by an expert committee, followed by a government survey, followed by actual acquisition proceedings. Any decisions can then be challenged in the courts. These procedures could take years, delaying all industrialization and urbanization.”
This Land Bill is yet another replica of Food Security Bill of social spending except that immediate onus of spending is shifted from the state kitty to the corporate purse. Corporates invest on viability and not on doles.
Net effect-- Keep the country poor. Get the votes of the poor and enrich the rulers. In the process it amounts to “from prosperity to poverty” by political populism. Five steps backward with one step forward is the policy prescription.
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SWAMINOMICS ---Land Acquisition Bill is a "Luddite" throwback to 19th century ---SWAMINATHAN S ANKLESARIA AIYAR—TIMES OF INDIA 25TH AUG 2013


http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM%2F2013%2F08%2F25&ViewMode=GIF&PageLabel=18&EntityId=Ar01801&AppName=1


 

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