The Punjab government may give the go-ahead to the recommendations of the United Nations Industrial Development Organisation (Unido) to create a land bank for industrial use in the state. Under this scheme, a farmer, whose land has to be acquired, would be given an option of either being given adequate compensation or a fixed share of developed land, out of the total chunk of land acquired for any specified purpose. Government officers and the Punjab Urban Development Authority (Puda) visited Gujarat to study the pattern of land pooling, which has prevailed there for the past 23 years. It was felt that the scheme would have to be modified to suit the peculiar requirements of the state.

SS Channy, principal secretary, the state industries and commerce department told FE , ?We are holding talks with ?Kisan Hit Bacaho Committee? and trying to frame a model for the scheme. At times there are various hurdles over land acquisition and farmers demand high prices for the land. Moreover, sometimes the matter goes to court, due to which various projects get delayed. To solve all these problems we are working towards roping in farmers to have a permanent law over land acquisition.?

DP Singh Baidwan, convener of the Kisan Hit Bacaho Committee, said, ?We have been demanding the land pooling scheme from the last seven years and it will be great if farmers get a fixed share of developed land out of the total land acquired for commercial or residential use. This will ensure security for the farmers.?

In the Punjab industrial report, submitted by the three-member team, led by consultant Unido Isher Judge Ahluwalia, the development of a comprehensive policy for long-term utilisation and development of lands has been suggested. The draft has said in the absence of a clear-cut policy over land acquisition, the state is missing out on opportunities being exploited by other states to give a push to industrialisation. According to the report, the state has a high potential for housing, commercial and supporting infrastructure. But due to the increased land prices, manufacturing units are choosing other states over Punjab.

The draft has also advocated examining the legal feasibility of resuming land and to explore avenues to overcome hurdles. It also recommends the setting up of a high-powered group, under the chairmanship of the chief secretary, to put forth a model to facilitate land acquisition for special economic zones (SEZ) in Punjab.

Unido?s draft has highlighted that the tax-subsidy regime is biased against the industry, which cross subsidises the burden of free power to agriculture. The draft said a vulnerable and weak financial position of the state government does not leave any room for subsidies for industrial development. On being asked if the state could come up with a new tax regime, Channy said, ?The Unido?s draft policy has given various suggestions. Now all the concerned departments of the state will work towards framing a policy which will be implemented by January 1, 2009.?