Panel bats for industrial land bank

A six-member committee set up by the Centre to recommend state-specific investment promotion strategy feels land banks should be created to boost industrial investment.

The committee, led by Maharashtra industries minister Rajendra Darda, argued location, resources, connectivity, logistical requirements and capacity to pay should be taken into account while acquiring land.

Apart from Darda, the committee is comprised of industry ministers of Andhra Pradesh, Punjab, Assam, Rajasthan and Madhya Pradesh. The committee, mandated to suggest state-specific investment priority, land bank, single window system and skill development mapping, also suggested acquisition of productive farm land be avoided as far as possible.

 

Darda said states were of the view that stress should be given on negotiated compensation to land holders. States had suggested adequate rehabilitation compensation package be provided, he added. He was speaking to reporters after the committee members met here yesterday. This was the second meeting after the committee met in Delhi in June. The committee will submit its report to the Centre after its meeting in Assam and then in Andhra Pradesh.

“Since many may not be able to use this land for sustained income, groups of project affected persons (PAPs) can be helped to form a company to use the land in which they will have 51 per cent share. Apart from the 49 per cent share for which they can induct others, the PAPs can sell their shares after five years,” the minister said.

According to Darda, states can consider collaboration with private buyers through a suitable model. He said states were also unanimous on the acquisition of unutilised government land and felt private acquisition be encouraged.

“For accessing land units which have been closed down, an exit policy is necessary so that its assets can be transferred to others who can make productive use of these units and generate employment,” Darda said.

Darda said the committee members revealed that due to the implementation of National Employment Guarantee Scheme, the availability of workers for industrial purpose had been a major problem.

“Committee members suggested that workers getting assured wages under the National Employment Guarantee Scheme could be trained and treated as semi-skilled workers for industrial jobs. This is just a suggestion came from the committee members,” he said.