Infrastructure projects are the ones that will receive the sharpest blow. In many instances, this rise in input costs is likely to yield the projects unviable. As it is, the infrastructure projects are under pressure, especially those in the rural areas as it is difficult to monetize them; so the private sector is not interested in them.
The growth of India is largely dependent on the infrastructure development which the government cannot take up single handedly and co-operation of private sector becomes necessary. The consent clause will delay the start of the project; further making the required returns from the project difficult to achieve.
Thus if India’s growth story is to continue then a user development fee will have to be charged and the price of utilities like electricity, water etc. will have to go up to rake in the revenues.
All in all, this is a laudable reform by the government for providing equitable sharing of profits while also moving a step closer to laissez faire kind of environment.
The high rate of migration and natural growth rate of our population in urban areas highlight the need for building new cities as existing ones are overburdened. Satellite towns depend on the parent city for their work and employment requirements, while the need of the hour is to build self-sustaining urban centres.
With the LARR Bill developing cities on a large scale would be difficult due to the requirements of getting consent from 80 percent of project affected people, arranging for their rehabilitation and resettlement (R&R), as well as paying a premium price for land shooting up the overall budget to very high levels.
What is a balanced view on the proposed changes to the Land Acquisition Act of 2013? Are critics and protestors right that these amendments are anti-farmers? Or are farmers being misled? One factor in favour of the land ordinance (which was re-promulgated early this month) is the inclusion of 13 Acts excluded in the December 2013 draft, including some significant ones such as Coal Bearing Areas Act of 1957 and the Atomic Energy Act of 1962.Read More...
For new constructions, developers have to seek clearance from the local authorities. When the building is ready, the local authority awards a completion certificate stating that the approved plan has been followed. This is mandatory for getting basic amenities such as water and power.Read More...