Should other states follow Gujarat’s Land Acquisition model?
With Abki Baar Modi Sarkaar, the real estate sector is looking forward to the ‘good days ahead of them’. Like every other industry, the realty market is also expecting certain things to work in favour of them. And one of the major one being the Land Acquisition Bill.
Before initiating any project, acquiring land is a tedious task in our country. Projects such as Tata Nano plant in (Singur) West Bengal and Arcelor Steel Plant in Odisha made it to the front page of the newspapers mainly because the projects were scrapped due to problems in acquiring land.
Recently, Accenture, a consultancy firm on behalf of the Department of Industrial Policy came up with an interesting report. Titled ‘Best Practices to Improve the Business Environment Across States/UTs in India’, the report highlighted that the Gujarat model of land acquisition is the best, and can be replicated in other states as well, of course with some amendments. Thus, the idea of replicating the Gujarat’s model for acquiring land in other states is doing the rounds.
Even the realty major across India shares similar views. “It is always advisable to follow the success. Gujarat and few more states have very good models for land acquisition, clearance systems, etc. For illustration, Gujarat is the best in land-related interventions and online mechanisms for environment clearances. Maharashtra heads in providing single-window clearances for industries while Karnataka has the best practice in managing the indirect taxes. Therefore, following a model as successful as Gujarat’s and others will definitely help in boosting the real estate at other places as well,” informs Rupesh Gupta, director, JM Housing.
Reiterating the same, Kamal Batra, chairman of Buniyad Group says, “These days, land acquisition is the biggest hurdle in starting a large project. In these matters, Gujarat has a very smooth and easy process of getting the land related involvements and environmental clearances at a quick pace. Hence if a model such as Gujarat’s is followed, this will allow Indian states to be a great place to invest in.”
So, should other states actually follow Gujarat’s Land Acquisition model? Let’s find out. To begin with, the model in question is all about faster clearances for the projects. It is no hidden truth that the delay in requisite approvals has been fuelling stalled projects, which in turn increases the project cost. And the model that prime ministerial front-runner Modi’s state follow ensures less complexity across all processes in getting land.
Currently, Gujarat Industrial Development Corporation (GIDC) has an inventory of 36,000 hectares of land in the state. Thus, in Gujarat, an entrepreneur gets five options while purchasing land. These include government land, private land, land in GIDC Estate, forest land and land parcel in Special Economic Zone (SEZ) or Industrial Park. Interestingly, GIDC has a simple procedure that involves minimum interference by the government. (Consider the table below for the process). Some of the practices that makes the model best includes flexibility to negotiate and price determination on the basis of market prices.
| Procedure along with number of days required in GIDC |
| -Purchase of Application Form |
| -Submission of Application with D.D. of Scrutiny Fee (Acknowledgement within 7 days) |
| -Issuance of OCA (7 days for non-commercial & for chemical cases, on receipt of NOC from GPCB) |
| -Agreement Execution along with down payment (30 days from date of OCA) |
| -Possession Advice (within 3 days) |
| -Taking over of Physical Possession (20 days) |
That’s not all! Getting all the necessary information is also very easy. On the basis of Geographic Information System (GIS), information about land inventory is made available on online portal. And if you encounter any problem, there is an online Grievance Redressal and monitoring system as well.
So, has the model been successful? Well, the answer is yes! The time required to give land possession in Gujarat is less than 45 days. And since the launch of the online portal in 2010, land allotment has also increased significantly.
