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NEW DELHI: India’s government edged closer to replacing a century-old land acquisition law yesterday, introducing a bill in parliament that seeks to placate a rural voter base worried it is being short-changed in the country’s rush into modernisation.
Delayed for months by anti-corruption protests that paralysed parliament, the bill that would increase compensation for forced and large land sales was squeezed into the lower house ahead of a recess and could be voted on in December.
Compulsory land acquisition for the public good is a contentious issue as crowded India seeks to industrialise, often at the expense of small landholders. The new bill proposes paying four times market value for land earmarked for infrastructure projects in rural areas.
The legislation, spearheaded by ruling Congress party leader Sonia Gandhi and her son Rahul, is seen as crucial for the government’s chances of winning elections in the heartland state of Uttar Pradesh next summer.
The Gandhi family has staked their political future on making big gains there ahead of a general election in 2014, where Rahul Gandhi is seen by many as a potential prime ministerial candidate for the Congress party.
Critics say the new rules will push up costs and encourage companies to exploit loopholes.
The bill has broadly been praised by industry for setting clearer rules, but there is also concern higher land costs will be passed on to consumers. — Reuters
