New Delhi: The Union Cabinet on Monday approved a new ordinance to amend the Land Acquisition Act which would help remove barriers in sectors like power and housing for smoother continuation of the stalled projects.
In a media interaction, finance minister Arun Jaitely said that the five areas were clearance for land for defence purposes, rural infrastructure, affordable housing and housing projects for poor, industrial corridors, and infrastructure or social infrastructure projects, among others including those in public-private projects in which the ownership of land will remain with the government.
The finance minister added that the procedure for acquiring land for these projects will be easier by omitting steps like social impact assessment, impact on food security, and consent of 80 per cent land owners, among other features of the act.
Highlighting other barriers, Arun Jaitely said restrictions on buying land under a law made by the previous Congress-led UPA government were holding up projects worth around $300 billion. Several States have asked PM Narendra Modi to renovate the law enacted in January.
Parliament's winter session ended in a logjam on December 23 and saw the opposition stalling business in Rajya Sabha. Taking that into consideration, the government passed two ordinances to let foreign companies raise their stakes in insurance ventures and allow commercial mining of coal.
Jaitley in response to opposition parties' criticism that such ordinances undermine the parliamentary system in a democracy said, “Governments must act with determination. The government must have the desire to implement its decisions”.
