Skip to main content

Land ceiling bill meant to help industrialists set up shop: Internal Gujarat govt note

By Rajiv Shah
An internal Gujarat government note, prepared by the state revenue department and in possession of Counterview, has admitted that the recent amendments to the state’s land various ceiling Acts are meant to “enable the industrialist to speedily establish industry”, in such a way that the industrialist could “purchase” the land for industrial purpose “without prior permission of the district collector.”
In order to do this, it said, it has amended Section 63 AA of Mumbai Tenancy Administration and Agriculture Land Act, 1948; Section 55 of Saurashtra Gharkhed, Tenancy Administration and Agriculture Land Act, 1949; and Section 89-A of Mumbai Tenancy Administration and Agriculture Land (Vidarbh Pradesh and Kutch region), 1958.
The amendments await President Pranab Kumar Mukherjee’s nod before they could become legal entities. The Gujarat governor refused to sign the amendments, and instead sent them to the Government of India for approval, as they invited wide-scale criticism of favouring industry at the cost of farmers.
The internal note says, “According to the prevailing provisions, a certificate is given by the collector to the purchaser of the agriculture land for industrial purpose”, and “the industrial activity has to be started within three years and production of goods /providing services has to be done within five years.”
Pointing towards the current hassle, the note says, “The government, after having considered the price paid for the purchase of the land, would pay compensation and enter the land of such industry in the government account and can dispose the land” if there is a “failure in starting the industrial activity within three years and production of the goods/providing services within five years.”
Giving reasons why “legal amendments” had become necessary, the note says, currently, “bona fide industrialists are facing difficulties/hardships due to the less time period limitation to start the industry.” And, “due to the changing circumstances and not starting the industry timely, the industrialist cannot sell such purchased private lands and, thus, despite of the circumstances beyond control, they cannot sell the land and end up with economic crises.”
Secondly, according to the note, “There is also no clear provision for the industrial park”, nor is there any “clear provision that the after having purchased the land for the industrial park, the land is developed and can be sold to other industrial units. Thus, it was found, is a necessity to make provision in the law for industrial park.”
In order to avoid these difficulties, the note says, “If the purchaser of the land wishes, he can give an equity/part in the proportion of the cost of the land to the farmer selling the land. This is just an enabling provision, vide which an opportunity of mutual partnership is created between the industrialist and the farmer and this would create ‘win-win’ situation for both which would provide the motivational force in the industrial development of the state.”
Then, the note states, a new provision of starting industrial activity under which the “time limit of starting production or providing services be totally five years, and on the basis of the application of the industrialist, such time period can be further extended for the period for two years (one year at a time) without charging any amount.”
But if, during this period, which totals “seven years, including the extension period”, the industry is not started, “a provision is made to extend such time limit for the period of three years by charging 50 per cent of the amount of jantri.” Jantri is the government assessment of the value of land, revised periodically, and is generally very low compared to the market rate.
Further, says the note, “If the industrialist cannot start the production/provide services for whatever reasons, he can sell such self-purchased land for industrial purpose. Interestingly, this can be done “after three years”, on payment of an amount to the state government – 40 per cent of the jantri between three to five years, 60 per cent of the jantri between five and seven years, and 100 per cent of the jantri for more than seven years.
Coming to the need for industrial parks, which are being developed in Gujarat “in order to make the industrial development of the state”, the note says, the existing laws do not allow the promoter to “sell the plots of such industrial park to another industrialist”, hence the government's “goal of development of such industrial parks, is not fulfilled.”
Under the new provisions, the note says, “The lands purchased for the purpose of industrial park could be sold to other industrial units.” Of course, the developer has to create “infrastructure facilities subject to the terms and conditions decided by the Industrial Commissioner” within three years after the purchase of the land, but if he “fails to fulfill the conditions, “the government could take over the land after paying the compensation as decided by the government.”

Comments

TRENDING

Advocacy group decries 'hyper-centralization' as States’ share of health funds plummets

By A Representative   In a major pre-budget mobilization, the Jan Swasthya Abhiyan (JSA), India’s leading public health advocacy network, has issued a sharp critique of the Union government’s health spending and demanded a doubling of the health budget for the upcoming 2026-27 fiscal year. 

Delhi Jal Board under fire as CAG finds 55% groundwater unfit for consumption

By A Representative   A Comptroller and Auditor General (CAG) of India audit report tabled in the Delhi Legislative Assembly on 7 January 2026 has revealed alarming lapses in the quality and safety of drinking water supplied by the Delhi Jal Board (DJB), raising serious public health concerns for residents of the capital. 

Zhou Enlai: The enigmatic premier who stabilized chaos—at what cost?

By Harsh Thakor*  Zhou Enlai (1898–1976) served as the first Premier of the People's Republic of China (PRC) from 1949 until his death and as Foreign Minister from 1949 to 1958. He played a central role in the Chinese Communist Party (CCP) for over five decades, contributing to its organization, military efforts, diplomacy, and governance. His tenure spanned key events including the Long March, World War II alliances, the founding of the PRC, the Korean War, and the Cultural Revolution. 

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Pairing not with law but with perpetrators: Pavlovian response to lynchings in India

By Vikash Narain Rai* Lynch-law owes its name to James Lynch, the legendary Warden of Galway, Ireland, who tried, condemned and executed his own son in 1493 for defrauding and killing strangers. But, today, what kind of a person will justify the lynching for any reason whatsoever? Will perhaps resemble the proverbial ‘wrong man to meet at wrong road at night!’

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

'Threat to farmers’ rights': New seeds Bill sparks fears of rising corporate control

By Bharat Dogra  As debate intensifies over a new seeds bill, groups working on farmers’ seed rights, seed sovereignty and rural self-reliance have raised serious concerns about the proposed legislation. To understand these anxieties, it is important to recognise a global trend: growing control of the seed sector by a handful of multinational companies. This trend risks extending corporate dominance across food and farming systems, jeopardising the livelihoods and rights of small farmers and raising serious ecological and health concerns. The pending bill must be assessed within this broader context.

Climate advocates face scrutiny as India expands coal dependence

By A Representative   The National Alliance for Climate and Environmental Justice (NACEJ) has strongly criticized what it described as coercive actions against climate activists Harjeet Singh and Sanjay Vashisht, following enforcement raids reportedly carried out on the basis of alleged violations of foreign exchange regulations and intelligence inputs. 

A balancing act? Global power rivalry over Iran challenges India’s foreign policy

By Vidya Bhushan Rawat*  A stable Iran is clearly in India’s interest. While US President Donald Trump has so far avoided a direct attack, the situation remains deeply uncertain. The central problem is that few governments take Trump’s words at face value. His actions have revealed a clear pattern: Washington targets adversaries even while pretending to negotiate with them.