Mumbai, Jan 01, 2015: The Centre’s decision to amend the Land Acquisition Act will provide a major fillip to the affordable housing segment and speed up the ambitious plan of ‘Housing for all by 2022’, real estate developers feel.
Companies such as Tata Housing, Parsvnath Developers, Prestige Group, Omkar Realtors and others believe that the amendment will pave the way for simplifying the land acquisition procedures.
The planned amendment, which was unveiled on Monday, has proposed that five new categories of projects would not require prior consent from affected families and removes the need for Social Impact Assessment (SIA).
These five sectors are affordable housing, defence, rural infrastructure, PPP projects and industrial corridors.
Brotin Banerjee, Managing Director and Chief Executive Officer of Tata Housing Development, said: “Acquisition of land has continued to be a major hurdle for developers, passage of the Act will open many new avenues. The ordinance has listed affordable housing for poor and infrastructure which means that projects can be executed faster and cost escalation can be controlled. It also means that development happens more uniformly and that the residents can benefit from livelihood opportunities and necessary support-infrastructure like electrification, road connectivity and other civic services.” Acquisition of land has continued to be a major hurdle for developers owing to rules that required the consent of at least 70 per cent of potential sellers before inking a deal.
That was a big stumbling block for realtors. Anshuman Magazine, Chairman and Managing Director, CBRE South Asia, said, “I am hopeful of the new norms easing off the inordinate delays seen so far in the land acquisition process for large-scale infrastructure and affordable housing projects. The infra industry, in particular, is expected to gain much from these new changes, as will housing for the poor.”
Industrial corridors
The changes proposed would also boost rural infrastructure and creation of industrial corridors. “Exempting industrial corridors from the consent clause would boost the commercial as well as other realty segments along such corridors. This is a welcome move and we look forward to these amendments in 2015 with a positive impact on the sector,” said Pradeep Jain, Chairman, Parsvnath Developers.
This is the third time in December that the Centre has resorted to issuing an executive order after Parliament session ended on December 23.
“Land acquisition Act a welcome step. Government taking the ordinance route shows urgency. Kudos!,” tweeted Harsh Goenka, Chairman of RPG Enterprises.Business Line
