Panagariya urges states to give farm land for industries

A week ahead of the Monsoon session when the Centre plans to take up the Land Acquisition Bill in the Rajya Sabha, Niti Aayog vice-chairman Arvind Panagariya has written about the benefits states can reap if they allow use of agricultural land for industrial purposes.

In a blog posted on the Niti Aayog’s website, Panagariya has also offered Aayog’s assistance to states who are ready to throw away their agricultural land to industries.

“States wishing to facilitate industrialisation can further benefit from liberal land leasing if they simultaneously liberalise the use of agricultural land for non-agricultural purposes.

Currently, conversion of agricultural land for non-agricultural use requires permission from the appropriate authority, which can take a long time,” Panagariya wrote on Monday and suggested that the states may amend the time taking process.

He said the state governments must seriously consider revisiting their leasing and land use laws to determine if they could bring about these simple but powerful changes to enhance productivity and welfare all around.

The bill that has already been passed in the Lok Sabha talks of making available a bulk of land to industries in India. “Long-term land leases allow the owner to retain the ownership, while earning rent on her land.

In addition, she will have the right to renegotiate the terms of the lease once the existing one expires..,” he said.