Govt as property dealer?

Unhappy with the Rewari land acquisition experience, Chief Minister Manohar Lal Khattar is reportedly toying with the idea of building a land bank for future projects. The Rewari farmers are within their right to decide whether to sell their land and at what price. Under the law their consent is essential even for buying land for a “public purpose”. It is not easy to make a farmer part with his land because, apart from the liberal compensation provided in the land acquisition law, he is often emotionally attached to the land and village of his forefathers. Relocation is a challenge many try to duck.  

The land bank idea has worked in states having large tracts of under-used or barren land cheaply and conveniently available. When the Tatas wanted to shift the Nano unit following protests in West Bengal, the then Gujarat Chief Minister, Narendra Modi, was quick to grab the project by offering a hassle-free land transfer. Punjab too has tried to create a land bank but without much success. A new industrial township was set up at Goindwal Sahib and even rail connectivity was provided, but it has failed to attract any major industry other than a power unit. Focal plants were developed as industrial hubs to decongest cities but, again, without success. Only small units came up here and there. Finally, post-liberalisation reforms, the role of the government has shrunk to that of a facilitator. Should it play the role of a property dealer or developer - buying land cheap, developing and selling it at a premium? 

Land has become very expensive in Punjab and Haryana. Even if the government acquires land, prospective industrialists may not approve of it, objecting to its location, price or quality. Despite liberal tax concessions and quick approvals for setting up special economic zones, most of these have not materialised. Industrialists want to use the land for real estate purposes. Khattar should provide corruption-free and efficient governance, build infrastructure, make land transfers faster and transparent, and create a congenial environment for manufacturing, and leave the rest to industrialists.