Kolkata: A blanket ban on acquiring multi-crop land for industry is a bad idea, Niti Aayog vice-chairman Ashok Lahiri said on Friday, advocating instead a case-by-case approach that prioritises proper compensation.Commenting on the imminent industry policy of the Bengal govt, Lahiri said on the sidelines of the 19th Banking Colloquium, organised by CII (eastern region), “One cannot take multi-crop land for industry is a bad argument.”Citing the state’s population density, three times the national average, he said, “We need both industry and agriculture, but productivity in agriculture has to be increased. Industry will not acquire land in the hills or near a forest, where there is no infrastructure.”Lahiri’s comment assumes significance as land has long been a sensitive issue in Bengal, driving political movements at various points in the state’s history. During the Left Front regime, acquisition of multi-crop land in Singur for a Tata Motors factory led to a sustained agitation steered by Mamata Banerjee, which set off a chain of events culminating in Trinamool Congress sweeping into office in 2011.When Trinamool Congress was at the helm, the govt adopted a hands-free approach to land acquisition and was averse to taking multi-crop land for industry.The six-month-old BJP govt has vowed to adopt a policy of buying land directly from owners for industry. It has announced that it would consider repealing the urban land ceiling act to facilitate rapid industrialisation. The govt is also discussing the possibility of modifying Section 14Y of the land reforms act to allow industrial units to possess more than 24 acres of land.Lahiri stressed the need to pay proper compensation to those parting with their land for industrial growth. “In the case of land, trust is a major issue. We have to gain back people’s trust. There should be a balance. People should be happy, and at the same time one has to ensure that the compensation is not unreasonable,” he said.The new industry policy, he said, should instil confidence in industrialists. “It should demonstrate that the state means business.”Earlier, while speaking at the colloquium on the relatively low credit deposit (CD) ratio in eastern India, Lahiri said, “One of the reasons could be the limited availability of bankable investment opportunities and productive economic activity. Bengal’s share of the population is higher than its share of national income. Its per capita income is approximately Rs 2 lakh, which is below the national average. Limited industrial modernisation is another factor contributing to low productivity and weaker credit absorption. The state needs to strengthen its investment-driven economy, as economic growth cannot be sustained without continuous expansion and modernisation.”Explaining further, he said, “Two important steps can help improve the CD ratio. One, encourage large-scale investments — the development of major infrastructure projects, such as a deep-sea port, could create fresh investment opportunities and send a strong signal to potential investors. Two, attract and facilitate industrial expansion — the state must encourage new large-scale industries as well as MSMEs, creating a stronger demand for institutional credit and supporting employment generation.”
