Land paucity in Assam cripples projects worth Rs 2k cr

GUWAHATI: Non availability of land for industrial activity in Assam has locked in projects worth Rs 2000 Crore.

According to industry body, Federation of Industry and Commerce of the North East Region ( Finer) around 90 units which has proposed investments in different sectors were left in lurch following non availability of land.

R S Joshi, Chairman of FINER said the single largest issue impeding investments is non availability of land for industries. "The classification of land and updating of land records had been done decades earlier. A large chunk of land that has been classified as agriculture has historically been land on which cultivation has never been possible."

Sandeep Khaitan, treasurer of FINER said, "Industry has just used around 1500 hectares of land of the state. This includes different kind of industrial infrastructure set up by state and central government and public sectors units."

He added, "FINER had collected from its members and contacts a list of industries and enterprises which are awaiting land purchase - sale permission / land conversion to start activity. Investment potential of more than Rs 2000 Crore involving a potential employment of more than 5500 direct and 16000 indirect has been locked in."

Joshi added there is a restriction imposed of transfer of private patta lands classified as agriculture, even though it is otherwise unsuitable for any agricultural activity. This restriction have been imposed not based on any legislation to the effect but based on bureaucratic orders.

He added land not suitable for agricultural activities, barren land, denuded and degraded lands, have to be converted to land for any non agricultural entrepreneurship activity.

Finer vice chairman, Sudip De added governmental Industrial estates in areas where Industries / entrepreneurial activity can come up have no space, and have long waiting list. This has jacked up the prices of private converted lands, as supply has been artificially restricted. These private converted land prices have become so high that any industry activity automatically becomes either unviable or unable to locate.

Finer requested the government to enable creation of industrial hubs in and around major cities of the state. As per the Industrial Entrepreneurs memorandum filed with the government more than 80% of the IEM's filed has been in the district of undivided Kamrup. Another hub can be created in upper Assam around the cities of Dibrugarh, Tinsukia based on the oil and gas assets present there.

Recently the Assam government has decided that land which has not been cultivated for last 10 years may be transferred for non - agricultural purposes after reclassification by the Deputy Commissioner.

This has been allowed for industries classified as mega industries project by the state government. A mega industry is an industry which has capital investment in excess of Rs 100 Crore or generates a minimum of 1000 regular employment.

Joshi said there has been a credit squeeze in place in the Northeast India. "A Major bank in the region has put funding to MSME sectors, which earlier was under the delegated power of local, regional and zonal offices in the state on hold and has subject it to prior approval of corporate office, thereby almost fully restricting funding for the last couple of months."