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Stung by Singur cost, Bengal looks at easing land law

By Mrs Gupta, Section News
Posted on Sat Oct 14, 2006 at 01:25:28 AM EST

Learning from the Singur deal, the Buddhadeb Bhattacharjee government today went ahead to modify a restrictive clause in the West Bengal Land Reforms Act of 1955 that allows a person or company to acquire land in excess of the ceiling only with the permission of the government.

The change is not only aimed at making land acquisition friendlier for investors but also prevent a repeat of the Singur episode where the state government had to face largescale protests to acquire 997 acres of farmland required by Tata Motors Ltd at Singur for its small-car project.

Not only this. After acquiring the acres, the government realised that the money it will get upfront from the Tatas is much less than what it has paid to the farmers. The main reason behind this is that the government is giving out the land on lease. The upfront payment for leased land is much less than that of sold land.

Officials of the Land & Land Reforms Department said the government has so far spent around Rs 125 crore to acquire the 997 acres required by the Tatas at Singur.

Section 14Y of the Act specifies that any Raiyat - person or institution - cannot hold more than seven standard hectares without written permission from the government, even if the land is required for specified purposes.

At the state secretariat meeting today, Bhattacharjee, backed by his Commerce and Industries minister Nirupam Sen, explained to his party members that the change was required urgently not only to ensure faster processing of deals, but also to give the government a better financial deal.

With a clutch of infrastructure and industrial projects that are about to start in Bengal, the government will have to acquire over 40,000 acres within the current financial year.

Former Chief Minister Jyoti Basu later said: "Buddhadeb Bhattacharjee and Nirupam Sen have briefed the secretariat about the issues and it has been decided to get the changes done during the Assembly's November session."

Section 14Y of the Act not only restricts the size of the land holding, it also grants specified exemptions. The IT industry, for example, in the state does not find a place in the 1955 Act. And hence the decision to "modernise" the Act.

The land that falls under this Act includes tea gardens, mills, factories or workshops, livestock breeding farms, poultry farms or dairies or townships in a planning area.

Last August, Bhattacharjee had tried to amend Section 14Q of the Act but failed when his own party's legislators voted against it. By securing the secretariat's stamp, Bhattacharjee has ensured that he does not face a similar embarrassment on the floor of the House.

Source- THE INDIAN EXPRESS, Dated, October-14,2006

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