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

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra   We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

'Big blow to crores of farmers’: Opposition mounts against US–India trade deal

By A Representative   Farmers’ organisations and political groups have sharply criticised the emerging contours of the US–India trade agreement, warning that it could severely undermine Indian agriculture, depress farm incomes and open the doors to genetically modified (GM) food imports in violation of domestic regulatory safeguards.

Why Russian oil has emerged as the flashpoint in India–US trade talks

By N.S. Venkataraman*  In recent years, India has entered into trade agreements with several countries, the latest being agreements with the European Union and the United States. While the India–EU trade agreement has been widely viewed in India as mutually beneficial and balanced, the trade agreement with the United States has generated comparatively greater debate and scrutiny.

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram   The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Trade pacts with EU, US raise alarms over farmers, MSMEs and policy space

By A Representative   A broad coalition of farmers’ organisations, trade unions, traders, public health advocates and environmental groups has raised serious concerns over India’s recently concluded trade agreements with the European Union and the United States, warning that the deals could have far-reaching implications for livelihoods, policy autonomy and the country’s long-term development trajectory. In a public statement issued, the Forum for Trade Justice described the two agreements as marking a “tectonic shift” in India’s trade policy and cautioned that the projected gains in exports may come at a significant social and economic cost.

From Puri to the State: How Odisha turned the dream of drinkable tap water into policy

By Hans Harelimana Hirwa, Mansee Bal Bhargava   Drinking water directly from the tap is generally associated with developed countries where it is considered safe and potable. Only about 50 countries around the world offer drinkable tap water, with the majority located in Europe and North America, and a few in Asia and Oceania. Iceland, Switzerland, Finland, Germany, and Singapore have the highest-quality tap water, followed by Canada, New Zealand, Japan, the USA, Australia, the UK, Costa Rica, and Chile.

Michael Parenti: Scholar known for critiques of capitalism and U.S. foreign policy

By Harsh Thakor*  Michael Parenti, an American political scientist, historian, and author known for his Marxist and anti-imperialist perspectives, died on January 24 at the age of 92. Over several decades, Parenti wrote and lectured extensively on issues of capitalism, imperialism, democracy, media, and U.S. foreign policy. His work consistently challenged dominant political and economic narratives, particularly those associated with Western liberal democracies and global capitalism.