<div>The Supreme Court’s judgement in the Singur land acquisition case is a setback to the industrialisation of West Bengal, which is among the country’s most industry-starved states. This is unfortunate because the Tatas’ proposal to set up a small car factory in Singur was seen as a sign of the revival of entrepreneurial interest in the state. Ten years after the Tatas were forced to leave in the wake of an agitation over acquisition of land for the factory, the court has found the acquisition wrong and illegal on procedural grounds. It found that due process was not followed by the then Left Front government in taking over farmland and has now ordered return of the land to its owners. But this leaves some of the substantive issues of land acquisition for industry practically unresolved, even in the context of a law which has replaced the 1894 law under which farmland was acquired in Singur. <div><br /></div><div>The court was split on the issue whether the acquisition of land at Singur was for a public purpose. While one judge held that acquisition of land for a private company served no public purpose, the other judge maintained that public purpose was involved in the government’s policy of industrialisation, which resulted in development and job creation. This issue may have to be settled by the court in future. It is important for the new land acquisition law also, which has made acquisition of land much more difficult. There is no doubt that landowners’ rights should be protected, and they should be adequately compensated and rehabilitated. However, a situation should not arise where land is not available for industries or is available only at such high cost that industry becomes unviable. The processes of acquisition should strike a balance between the rights of landowners and the needs of the industry.</div><div><br /></div><div>The Trinamool Congress took political advantage of the concerns over land at Singur, and later at Nandigram, and came to power in West Bengal. Singur not only dashed the hopes of bringing industrial investments to the state but also ended the long rule of the Left Front. The investment scenario in the state has not looked up after Singur and during the tenure, since 2011, of the Trinamool government. West Bengal badly needs industrialisation, but the Singur experience has dissuaded industry from taking any initiative. The judgement in the case will strengthen that negative message. Land is limited and is important for its owners. But it is also needed for new industries and for expansion of existing industry. West Bengal has suffered a major setback and there is a lesson in it for other states.</div></div>
<div>The Supreme Court’s judgement in the Singur land acquisition case is a setback to the industrialisation of West Bengal, which is among the country’s most industry-starved states. This is unfortunate because the Tatas’ proposal to set up a small car factory in Singur was seen as a sign of the revival of entrepreneurial interest in the state. Ten years after the Tatas were forced to leave in the wake of an agitation over acquisition of land for the factory, the court has found the acquisition wrong and illegal on procedural grounds. It found that due process was not followed by the then Left Front government in taking over farmland and has now ordered return of the land to its owners. But this leaves some of the substantive issues of land acquisition for industry practically unresolved, even in the context of a law which has replaced the 1894 law under which farmland was acquired in Singur. <div><br /></div><div>The court was split on the issue whether the acquisition of land at Singur was for a public purpose. While one judge held that acquisition of land for a private company served no public purpose, the other judge maintained that public purpose was involved in the government’s policy of industrialisation, which resulted in development and job creation. This issue may have to be settled by the court in future. It is important for the new land acquisition law also, which has made acquisition of land much more difficult. There is no doubt that landowners’ rights should be protected, and they should be adequately compensated and rehabilitated. However, a situation should not arise where land is not available for industries or is available only at such high cost that industry becomes unviable. The processes of acquisition should strike a balance between the rights of landowners and the needs of the industry.</div><div><br /></div><div>The Trinamool Congress took political advantage of the concerns over land at Singur, and later at Nandigram, and came to power in West Bengal. Singur not only dashed the hopes of bringing industrial investments to the state but also ended the long rule of the Left Front. The investment scenario in the state has not looked up after Singur and during the tenure, since 2011, of the Trinamool government. West Bengal badly needs industrialisation, but the Singur experience has dissuaded industry from taking any initiative. The judgement in the case will strengthen that negative message. Land is limited and is important for its owners. But it is also needed for new industries and for expansion of existing industry. West Bengal has suffered a major setback and there is a lesson in it for other states.</div></div>
