Proposed changes in land acquisition rules positive for growth: Angel Broking

MUMBAI: The proposed changes in the government's land acquisition legislation, if implemented, would be positive for various sectors including infrastructure, and they would help in achieving the overall industrial growth, according to Angel Broking. The government has made key changes to the proposed land acquisition regulations, making it more attractive for the industry by easing some of the stringent conditions, said the broking firm in its report on market outlook.

The rural development ministry has proposed that it will not implement the legislation with retrospective effect, besides relaxing the requirements of consent from landowners, and tightening the definition of market value.

Since the ministry has dropped the plan to apply the proposed legislation retrospectively, the ongoing projects, for which the acquisition is on but land has not been awarded, will not have to start the process afresh, according to Angel Broking. The ministry has also rejected the Standing Committee's recommendation that the government should not be involved in acquiring land for private companies or public-private partnership projects.

The government has decided to relax the consent requirement for PPP projects and private companies. Private project developers will now be required to obtain the consent of 80% of the landholders, instead of 80% of the project-affected families. The proposed changes, if approved by the Cabinet and subsequently the Parliament, will mean that private developers will have to get fewer people to agree to the acquisition, said Angel Broking in the report on Thursday.