Government To Amend Land Acquisition Law, Cut Stake In PSU Banks

Posted On: 2014-11-10 00:16:55

New Delhi: Finance minister Arun Jaitley on Sunday said the government will amend the land acquisition law to make it friendlier for economic development and suggested that the NDA may press ahead with changes even if the opposition does not lend its support.

He also listed lowering government stake in staterun banks to 52% and pushing ahead with the ambitious Goods and Services Tax as the other issues on the priority list for the Narendra Modi government.

"We are also trying to bring down government equity in banks to about 52% so that a large amount of capital, almost close to Rs 3 lakh crore, can be introduced into banks itself, so that they have a lot more resources for financial inclusion, " he said. On October 29, TOI had reported the government's move to cut stake in public sector banks. Some changes may be necessary (to the Land Acquisition Act). We will first try to reach a consensus and if that is not possible, we will go ahead and take the decision, " he said at conference in the Capital.

The restrictive land law has emerged as a crucial hurdle for the manufacturing sector and India Inc and state governments have complained about the tough provisions which make it difficult to acquire land for industry. The government has embarked on a major push to the manufacturing sector and wants to dismantle hurdles that hinder growth.

Jaitley said it was important to remove obstacles in the land law to fulfill the government's agenda of building 100 smart cities.

He said the government was in the final stages of its discussions with state governments on the GST issue and indicated that a bill to amend the Constitution was expected in the winter session of Parliament that begins on November 24. "I am in the last stage of my discussion with states on the eve of Parliament session before introducing the amendments to the GST law in Parliament, " Jaitley said. He assured investors about the government's priority to restore growth.

"Economy was and is in a challenging situation and one of the principle challenges before us is to restore the confidence in the Indian economy, to expand economic activity and move towards increasing the growth rate, " he said.

The FM also said he expected growth to be a "little better" next year which could propel the Indian economy to a higher growth path in the coming months.

Source : Government To Amend Land Acquisition Law, Cut Stake In PSU Banks