PM eases land transfer process for infra projects
3 Aug 2012 7:23 AM IST
On Thursday, Prime Minister Manmohan Singh eased the process for transfer of government land for certain types of projects to speed up construction of roads, ports and other infrastructure projects. In order to avoid procedural delays, Singh approved relaxations in the land transfer policy of the government for government-owned land, so that infrastructure projects are not held up.
'This is a decision taken by the Prime Minister's Office (PMO) which will speed up projects. It is related to transfer of land for infrastructure projects. It will do the same even for PPP projects. Acquiring land for such projects has been a huge stumblingly block for the UPA government,' said a PMO official.
In 2011, the government had imposed a ban on all transfer of government-owned land for such projects except in cases where land was to be transferred from one government department to another. 'During this time, the Department of Economic Affairs was to prepare a comprehensive land transfer policy for government-owned land. In case any department had to implement a project which required alienation of land either through lease, license or rent, it had to seek specific approval of the cabinet,' the official statement said.
This led to long delays in awarding concessions for infrastructure projects, particularly in the public-private partnership (PPP) category. The statement from the PMO stated, 'All PPP infrastructure projects – roads, railways, ports, civil aviation and metros – have some element of land alienation as the project is often built on government-owned land. The government continues to own the land which is leased or licensed out. Requiring Cabinet approval for each PPP project meant adding a few months to complete the processes for securing Cabinet approval.'
Singh has now relaxed the ban on three categories of projects by allowing land alienation. The first category includes all cases of land transfer from ministries to statutory authorities or PSUs will be allowed, subject to the requirements of normal rules of the government.
The second category focuses on all cases of land transfer on lease or rent or license to a concessionaire which have been appraised through the PPPAC (Public Private Partnership Approval Committee) route and approved by the finance minister or by the ministers concerned or by the cabinet, as the case may be, depending upon the value of the project.
Lastly the third category includes development and use of railway land by Rail Land Development Authority as per provisions of Railways Amendment Act, 2005, and the rules framed and in accordance with the prevalent policies and guidelines of the railway ministry and the government. This initiative by the PMO would speed up the award of PPP projects significantly.
'This is a decision taken by the Prime Minister's Office (PMO) which will speed up projects. It is related to transfer of land for infrastructure projects. It will do the same even for PPP projects. Acquiring land for such projects has been a huge stumblingly block for the UPA government,' said a PMO official.
In 2011, the government had imposed a ban on all transfer of government-owned land for such projects except in cases where land was to be transferred from one government department to another. 'During this time, the Department of Economic Affairs was to prepare a comprehensive land transfer policy for government-owned land. In case any department had to implement a project which required alienation of land either through lease, license or rent, it had to seek specific approval of the cabinet,' the official statement said.
This led to long delays in awarding concessions for infrastructure projects, particularly in the public-private partnership (PPP) category. The statement from the PMO stated, 'All PPP infrastructure projects – roads, railways, ports, civil aviation and metros – have some element of land alienation as the project is often built on government-owned land. The government continues to own the land which is leased or licensed out. Requiring Cabinet approval for each PPP project meant adding a few months to complete the processes for securing Cabinet approval.'
Singh has now relaxed the ban on three categories of projects by allowing land alienation. The first category includes all cases of land transfer from ministries to statutory authorities or PSUs will be allowed, subject to the requirements of normal rules of the government.
The second category focuses on all cases of land transfer on lease or rent or license to a concessionaire which have been appraised through the PPPAC (Public Private Partnership Approval Committee) route and approved by the finance minister or by the ministers concerned or by the cabinet, as the case may be, depending upon the value of the project.
Lastly the third category includes development and use of railway land by Rail Land Development Authority as per provisions of Railways Amendment Act, 2005, and the rules framed and in accordance with the prevalent policies and guidelines of the railway ministry and the government. This initiative by the PMO would speed up the award of PPP projects significantly.
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