The fate of the land Acquisition, Rehabilitation and Resettlement Bill seems to be hanging in mid air. With most political parties unwilling to support the Bill, it is being perceived as a popular poll plank for the government even as several sticky areas continue to dog the Bill. Though the exact details of the final draft are not available in the public domain, it is said that some fundamentals remain unchanged.
The core problem that persists is that the lawmakers have no fixed solution to land pricing. There is tremendous variation in land needs, land ownership patterns and interest groups involved. According to experts, most of these complexities arise from the local land market and can be tackled only at the state level and therefore, there cannot be a one-size-fits-all kind of solution.
Most economists are of the view that the Bill, which proposes to pay compensation that is up to four times the market value in rural areas and two times the market value in urban areas will tilt the balance away from industry. The cost of land will inflate significantly for developers and the land acquisition will be mired in litigation and controversy.
Analysts see serious flaws in the processes and regulation of the land Bill, which could stifle the base of economic development. While determination of the fair market price is a mystery, the benefit trickling to the right people is also an issue. It is definite that the intended beneficiaries are the farmers in the villages and landless labourers. However, since most of the land, which is likely to be up for acquisition has already been grabbed by the rich and powerful do we still have lucrative landIJ
Moreover, it will become tough for affordable housing projects to take off since it would inflate the cost of land. Critics of the land Bill point out that the way it has been designed, the way the fair market price is going to be determined and the way there are host of concomitant entitlements to potentially unlimited claimants is a cause of concern.
A regressive acquisition system that created a lot of bad-blood in the past will turn into a social taxation system, in its present form. This would encourage the transfer of wealth to a tiny minority of landowners who are lucky to be living in that particular land.
Policymakers need to further consider the kind of impact the Bill would have on development and the regional fall out it would have. As some economists say, even as there is merit in ensuring compensation to the people, the industry cannot be bound to the ground. Ultimately, if there are no industries, there will be no jobs and with poor agricultural conditions persisting, economy will come to a stand still.