The Government is planning to return 40% of the land acquired, back to its original owners for commercial development, thus doing away with obstacles in the way of infrastructure development. This may also enable states to enable land pooling for road projects. The country is looking to lay 30 kilometers of roads everyday by March 2016.
Land pooling would help projects that are stuck due to land acquisition issues. Andhra Pradesh has set an example by pooling 34000 acres of land for the construction of its capital Amaravati, by making farmers its stakeholders. The attraction is that these farmers would get back 30% of their developed land back, which will have a higher price tag.
Analysis shows that 43% of the stalled projects face land acquisition problems and land costs account for 45% of the cost of building highways. If the land ordinance lapses and the land acquisition bill 2013 come into force, land acquisition will be a long drawn process causing delays in development.
Source: Economic Times