Adopt single-window e-portal to ease land acquisition in India

Globally, there is a determination for a China-plus-one strategy to diversify manufacturing supply chains. Both the government and large multinational companies are aligning with this approach. Domestically, Prime Minister Narendra Modi has given an unprecedented push to industry through progressive schemes like PLI and creation of state-of-the-art infrastructure, be it roads, railways, airports or ports. Domestic demand is booming. India remains the fastest growing major economy in the world and most forecasts suggest that it will continue to be so for many years. Domestic economic indicators like record GST collections show that our economy is in a strong position.

The growth of a strong, globally competitive manufacturing sector is key to India’s journey to prosperity. The experience of every advanced economy in the world clearly shows that manufacturing provides high quality, well-paying jobs for large numbers of people. In India, there are still a lot of people, about 40% of the workforce, engaged in agriculture, which produces a very small portion of our gross domestic product (GDP), about 16% of the total. The additional labor in agriculture needs to be absorbed by an ever-expanding manufacturing base. This is the best way to generate large scale employment. It will also provide many opportunities for our entrepreneurs who want to go into manufacturing sector. So far, most of our startups have been in services. But we have high potential to become the factory of the world.

This huge opportunity should not be missed because of the challenges in setting up the manufacturing unit. Land acquisition has become a major stumbling block in the process of project execution, a point that has also been visited upon by officials from potential investor countries. In fact they are very keen to encourage their companies to invest in India, so as to avoid dependence on China.

Smooth and unencumbered land acquisition is important for building large scale factories and industrial clusters, which is now essential to achieve global competitiveness. Scale is also very important to ensure that millions of good jobs are created in India.

Land acquisition has gone smoothly in every country that has industrialized. In most cases, the industry is willing to pay multiples of the prevailing market prices for the land. Often, the majority of people in an identified location are willing to sell their land to a company on reasonable terms. However, unfounded apprehensions are often instigated by narrow interests to derail or delay the process of land acquisition for an industrial project. Proposals for large factories also require land urgently, so that implementation is rapid and plans are long-term. For industry, this kind of time is very costly and can make the difference between a large project being financially viable or unviable.

There is a need to encourage and create a single online system to eliminate local land mafia and middlemen. Prime Minister has done a remarkable job of using digital technology

Eliminating unnecessary middlemen and paperwork in government schemes. It has had a transformative effect on the lives of all Indians. Now the money of various schemes goes directly to the bank accounts of the beneficiaries.

So we have a strong example of a system that works and can be rolled out quickly. We also have excellent expertise in building digital public infrastructure, which is recognized as one of the best in the world.

On similar principles, with other operational digital platforms as a model, a single-window online system for land procurement can be developed. The Government of India has already done a great job of digitizing land records and related documents. Documents such as ‘7/12’, which contain the names of landowners and their rights along with details of land type and use, have already been uploaded online in the country.

An ideal and integrated portal should have provision for a potential buyer and seller to complete the transaction online. The buyer can pay for the purchase and present a single document. If the seller agrees and encashes the payment, no further process or documentation should be required. A public sector lender like State Bank of India could be the nodal agency under which the deal is done. It will be trusted by all concerned.

It is also important to find other innovative ways to ensure that the process of land acquisition in India is fast. Many mines which have been auctioned are yet to become operational due to delay in land acquisition. Efficient mining is another key to ensuring that the raw materials that feed our manufacturing base are mined in geographically rich India rather than imported. About half of our total imports are from materials that are found underground. We must change it.

Ultimately, speed and scale must be the defining characteristics of New India. A new user-friendly digital land sales system, which appreciates and incorporates the importance of speed and scale, would be a big win for the country.