1. India Inc tepid to changes in Land Act

India Inc tepid to changes in Land Act

While India Inc welcomed the waiver of the social impact assessment (SIA) and the consent clause for specific areas...

By: | Mumbai/new Delhi | Published: December 30, 2014 4:30 AM

While India Inc welcomed the waiver of the social impact assessment (SIA) and the consent clause for specific areas, including projects in the public-private participation (PPP) mode, industry was concerned that the compensation to be paid to those who sold them the land remained high and also that it been extended to more sectors. Companies were also apprehensive about taking on the resettlement and rehabilitation (R&R).

Sunil Kant Munjal, joint MD, Hero MotoCorp, told FE the move to ease the conditions for some areas was welcome but added it could have been done for other sectors too. Munjal felt industry might not mind the high compensation if it was not made responsible for resettlement.

“We can pay but don’t make us responsible for resettlement. That should be left to a government agency,” he said.

K Venkatesh, managing director and CEO, L&T IDPL, felt the compensation to sellers was steep. “One reason why projects are stuck is the high compensation,” Venkatesh said.

He added, however, that land acquisition would now be easier since the consent clause and the SIA had been waived for projects in specific areas, including PPP projects where the land would vest with the government.

“However, the government will need to make the necessary allocations in the budget to acquire land,” he pointed out.

Virendra Mhaiskar, chairman and MD, IRB Infra, observed that with national highways coming under the ambit of compensation, NHAI would need to pay more for land. “However, that may actually speed up the process of acquiring land,” Mhaiskar said. While NHAI has been keen to use the EPC route, it may be forced to allocate a smaller amount for such projects since it would need to spend more on land.

Niranjan Hiranandani, chairman, Hiranandani Group, observed that it would have taken at least three to four years acquire land if the SIA was mandatory and consent of 80% landowners was to be taken. “There is no other way to speed up the process of land acquisition than waiving these conditions,” he said. Hiranandani called for clarity on some issues, including the clause relating to the duration for which land could be held if not developed. “While this duration has been increased from 5 years to 10 years, in some sectors the development happens in phases, so the project may or may not be complete in the 10 years. It could be cumbersome if the company is required to go back again and acquire more land,” he explained.

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  1. G
    Dec 30, 2014 at 5:51 pm
    Have a look at latest news portal :vishwagujarat/en/
    1. H
      Harry Potter
      Dec 30, 2014 at 11:23 am
      Dear Investors/Analysts/Advisers - Watch Out! L&T top-bres were on selling spree March-2014, leading the pack Chairman Mr Naik sold his L&T shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results L&T share has seen biggest intraday decline of 8 % since July 2009, Citi Group had raised multiple red flags on earnings. Hydrocarbon subsidiary suffered losses of 900 crores, sans stake at Dhamra Port (2500 crores) L&T would have posted losses. Modi Euphoria and upbeat in market saved L&T going below Rs 1300 during q2, a striking closed range of 1200 of March 2014. Part stakes at L&T Inra sold to Canadian FII - (2000 crores). Expecting VGF - Viability Gap Funding) of 3000 crores to complete Hyderabad Metro project. Stake or post losses, Deep Sea or devil? Post Q2 results L&T share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Before Q3 results it will reach range of 1200 a piece, the rate L&T top bres has made a kill. Post Q3 results another big intra-day fall of 8-10 %, decline to 52 week low of 900. By Feb (end)-2015 no wonder, 5 year low of Rs 600 a piece? -----------------------------------------------------Expensive CXO Maha-Kumbh-Mela at L&T - what is the number of CEOs at L&T and all its subsidiaries (138), their CTC? How far higher, this is to manage L&T group revenues of $a4 bln than Mr Sikka (aged 46) of Infosys highest paid professional CEO (Rs 30 cr) in India, entrusted with business $ 8 bln in revenues and 1.6 lakhs employees. At L&T, just Chairman Mr Naik (aged 72) and group CEO Mr Vankatramanan are pegged at 21 and 14 crores. L&T Infotech - 2 CEOs (left Oct-2014, now looking for two new), 1 COO (Infy CEO Contender. 1 CEO for L&T Tech Services. Infotech is claiming to touch $1 bln revenues since 2010, still not there. Information Age leaders, top-man of TATA, Infosys, Microsoft are in their 40s, why this super 70s at L&T? Chairman Mr Naik’s jaw-dropping musings on succession – “You find a man in the world who will kill himself four times a day, has worked for more than a hundred years-- There is no such person.-- None of us here (at senior level) are working for money”. --------------------------------------------------------------------------------------------------------------------------Biggest shareholders at L&T are state owned LIC/UTI. Ministry of Corporate Affairs, PM Mr Modi, LIC/UTI should intervene to fix retirement age at L&T to 60!!

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