India to issue land reform order to get around political deadlock

NEW DELHI (Reuters) - India will issue a new decree this week for land purchases that has stirred disquiet across the country but which the government says is necessary to build roads, ports and power stations for higher economic growth.

Billions of dollars of infrastructure projects are held up because of the difficulties involved in acquiring land under a law that requires approval of 80 percent of the affected landowners as well as carrying out a social impact assessment study.

Prime Minister Narendra Modi has made amending the law the centrepiece of the reform effort in the first year of his administration.

The rural development ministry is preparing a new ordinance or an executive order to replace an earlier one that expires on April 5, an official in the ministry said on Monday.

It will have the same amendments which were approved by the lower house of parliament, the official said, making it easier to buy land for industrial corridors, rural housing and electrification, and for defence purposes.

Critics led by the main opposition Congress party say the proposed land reforms are anti-farmer and will rob millions of people of their livelihoods.

(Reporting by Nigam Prusty and Sanjeev Miglani; Editing by Rajesh Kumar Singh and Jeremy Laurence)