With the country already facing serious problems in augmenting urban housing stock and urban population expected to double and reach 590 million by 2030,the proposed Land Acquisition and Rehabilitation & Resettlement bill will be major impediment for the planned development of the country and it may result in increase of slums and unauthorised settlements. The compensation for rural and urban land fixed at 4 and 2 times the market value repectively. In addition,reservation of 20 per cent of developed land,annuity and other compensations will almost double the property prices. While benefiting the farmers,the bill intends to jack up the land cost many fold as a proportion of the total cost of a housing unit. The impact of this will be maximum on home buyers as the developers will have no option but to transfer the entire increase on them. It will be a big setback for the housing sector,especially low income housing where the shortage is maximum. It may also jeopardise slum rehabilitation and resettlement schemes. Getting consent of 80 per cent owners before acquisition provided in the bill is going to be tedious and may delay the acquisition process. Also the 10-year period specified for the completion of projects may not work in the case of township development which is always linked to growth of population and development of internal and external infrastructure. Examples are Noida and Gurgaon,which have been under development for more than 30 years but are nowhere near completion. The government needs to give serious thought and listen to all stakeholders before giving the bill a final go. Otherwise,the consequences may be serious for the country that is urbanising rapidly. Author is Director General,NAREDCO
