This Article is From Feb 26, 2015

Don't Make Industry 'a Bad Word', Says Finance Minister Defending Land Reforms

Finance Minister Arun Jaitley defends the Land Bill in Parliament.

New Delhi:

Activating a strong defense of the government's proposed land reforms, Finance Minister Arun Jaitley chided the opposition today, saying "Please do not create an atmosphere where 'industry' and 'infrastructure' become bad words."  Mr Jaitley, speaking in Parliament, said parties like the Congress have erred greatly in hawking the government's plans as "anti-farmer".

"This debate is not between rich and poor or farmer vs non farmer, but about adding to the poverty of India," said the minister.

In December, Prime Minister Narendra Modi's government used an ordinance or executive order to drastically change the law introduced by the previous Congress-led government to make farm land available for infrastructure and industry. Projects in five categories including Defence have been exempted from a requirement of the consent of 80 percent of affected landowners for any deal.

The ordinance also ends the need for companies to conduct a social impact study of such projects, which would involve public hearings and, industry executives fear, drag on for years.

The ordinance is a temporary order and needs the approval of both houses of Parliament to come into force. It will lapse if Parliament does not ratify it this session. The government has the the biggest majority in 30 years in the Lok Sabha, but is dependent on Congress to pass bills in the upper house.

Despite a backlash from the opposition, farmers' unions and activists, Prime Minister Narendra Modi is reportedly not in favour of revising the ordinance or the contentious provisions However, in what's being seen as an attempt to propitiate the opposition, senior minister Nitin Gadkari has said the government is "open to good suggestions" on potential changes.

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