Decision on land ordinance in 48 hours: Jaitley

Finance Minister Arun Jaitley on Saturday kept up suspense on whether the controversial land acquisition ordinance will be repromulgated, saying a decision will be taken in the next 48 hours.

“Wait for next 48 hours (for a decision on land ordinance),” he said, when asked whether the government has take a decision with regard to repromulgate the ordinance which lapses on August 31.

The land acquisition ordinance, which sought to make land acquisition for industrial projects easier, generated lot of political controversy and was promulgated for three times. It will expire on August 31.

The government yesterday issued a statutory order on Land Bill in lieu of re-promulgation of land ordinance. The order will ensure compensation for land acquired under 13 Acts and will safeguard the rehabilitation of land owners.

Replying to a host of questions at a function here, Jaitley made a case for lowering interest rates saying it was essential to raise the growth rate to 8-10 per cent.

“If we have to jump to 8 per cent plus or 8-10 per cent growth bracket than all the stalled projects (have to be revived) and cost of capital have to go down,” Jaitley said.

Although Reserve Bank reduced the benchmark interest rate by 0.75 per cent in three tranches since January, it maintained the status quo at its policy action earlier this month despite pressure from industry and Finance Ministry. The next monetary policy is due on September 29.

The government, he said, was working on the process of ease of doing business, bringing in bankruptcy law, rationalising taxation and introducing proper public procurement policy.

These are couple of areas on which work is in advanced stage, Jaitley said.