Make landholders stakeholders
Tata’s swift decision to locate the Nano plant in Gujarat would further enhance the state’s investor-friendly reputation apart from creating a huge platform for the automobile industry in the state. More importantly, it would bring the land issue ...
By ET Bureau |
Tata���s swift decision to locate the Nano plant in Gujarat would further enhance the state���s investor-friendly reputation apart from creating a huge platform for the automobile industry in the state. More importantly, it would bring the land issue in industrial development to the forefront of industrial policy.
Though details are awaited, apparently the tax incentives provided by Gujarat are more than what West Bengal had offered to the projects. But what clinched the deal for Gujarat was the swiftness with which the state made available 1,100 acres of land for housing the mother plant and the vendors.
Clearly, states that can make available land easily for industry would have a headstart over others in the race for industrialisation. This realisation may well give an impetus to the old model of state industrial development bodies acquiring and developing land for resale to industrial units instead of attracting projects and then trying to make land available.
However, fundamentally this approach is no different from the project-specific land acquisition by the state through the use of eminent domain (as was the case with land for the Nano plant) that caused the conflagration in Singur. The only difference being that the former tends to be a long drawn out acquisition process where those affected have no chance to rally together, while it has as many losers. Besides, India does not have the luxury of a long drawn industrialisation agenda.
Manufacturing has to expand quickly so that people can be moved out of agriculture. In such a situation, rapid land acquisition cannot be avoided and its attendant consequence can���t be wished away. Land acquisition can be successful only when landholders are made long-term stakeholders in industrialisation.
Monetary compensation may often be more than the fair value of the land but that does not necessarily create local stake in industrialisation, particularly when it entails relocation and giving up a way of life. There is a need to create more lasting interest for landholders to willingly part with land. The obvious way is through equity participation in projects and employment for the affected.
Though details are awaited, apparently the tax incentives provided by Gujarat are more than what West Bengal had offered to the projects. But what clinched the deal for Gujarat was the swiftness with which the state made available 1,100 acres of land for housing the mother plant and the vendors.
Clearly, states that can make available land easily for industry would have a headstart over others in the race for industrialisation. This realisation may well give an impetus to the old model of state industrial development bodies acquiring and developing land for resale to industrial units instead of attracting projects and then trying to make land available.
However, fundamentally this approach is no different from the project-specific land acquisition by the state through the use of eminent domain (as was the case with land for the Nano plant) that caused the conflagration in Singur. The only difference being that the former tends to be a long drawn out acquisition process where those affected have no chance to rally together, while it has as many losers. Besides, India does not have the luxury of a long drawn industrialisation agenda.
Manufacturing has to expand quickly so that people can be moved out of agriculture. In such a situation, rapid land acquisition cannot be avoided and its attendant consequence can���t be wished away. Land acquisition can be successful only when landholders are made long-term stakeholders in industrialisation.
Monetary compensation may often be more than the fair value of the land but that does not necessarily create local stake in industrialisation, particularly when it entails relocation and giving up a way of life. There is a need to create more lasting interest for landholders to willingly part with land. The obvious way is through equity participation in projects and employment for the affected.
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