Kolkata, Nov 6 The BJP government in West Bengal was aiming to encourage industries to acquire land directly from owners by offering them easier eligibility criteria for ‘strategic and mega project’ status, according to the state’s new investment promotion policy.
The policy document, released on Thursday, provides for lower land requirements for projects that acquire plots on their own, making them eligible for the incentivised status.
Investors who acquire 500 acres of land independently can qualify for strategic and mega project status. Projects relying on land allotted by government agencies, however, will have to meet a higher threshold of 1,000 acres.
The move comes against the backdrop of West Bengal’s longstanding shortage of industrial land and the political sensitivity surrounding land acquisition. The Singur and Nandigram movements during the Left Front regime had triggered widespread protests against compulsory acquisition for industrial projects.
Chief Minister Suvendu Adhikari said on Thursday that his government would not resort to forcible acquisition of land from farmers, but would also not leave industrialists entirely on their own to arrange plots, signalling a departure from the previous government’s approach.
The government is considering a range of measures to address the shortage of industrial land, including direct purchases from landowners, land pooling and the recovery of unused industrial plots.
Under land pooling, landowners can voluntarily contribute their plots for planned development. A portion of the pooled land can be used for infrastructure, while developed plots are returned to the original owners in proportion to their contribution.
The government is also exploring funding arrangements with HUDCO, NABARD, the Asian Development Bank and other financial institutions to finance direct purchases of land from owners.
Another proposal involves recovering unused industrial land allotted to companies and putting it to productive use.
Under the framework, industrial units will be required to begin production within three years of acquiring land. The government is considering cancelling allotments where projects fail to take off within the stipulated period.
The policy also provides for monitoring land utilisation and maintaining a GIS-enabled inventory of industrial plots, with details of ownership, size, permitted use, connectivity and infrastructure.
The land-related measures are part of a broader framework that offers tailor-made incentives for strategic and mega projects, allowing the government to consider additional assistance based on the scale of investment and commitments made by companies.
The policy also provides for green power procurement through open access.
Indian Steel Rolling Mills Association chairman Vivek Adukia said allowing industries to procure green power through open access via state entities was a long-pending demand, particularly for energy-intensive units, that had been met by the new government.
He also welcomed the provision for net metering, describing it as another major development.
The government’s land strategy is aimed at making large, contiguous parcels available for industrial projects while avoiding the political and social complications associated with compulsory acquisition.
The implementation of direct purchases and land pooling, however, will depend on landowners’ willingness to participate, the availability of contiguous plots and the details of compensation and rehabilitation arrangements.
(PTI News)
