Recognising that the present model of compulsory acquisition of land is fraught with difficulties, the Tamil Nadu government on Thursday said it would soon come with a new land acquisition policy. At the same time, to ensure land availability for fostering industrial growth, it would also create a ‘land bank' by pooling available government land and acquiring private lands “without adversely affecting the interest of land owners.”
Announcing this in his revised budget for 2011-12, Finance Minister O. Panneerselvam said, “The process of land acquisition is becoming cumbersome, often leading to public resistance and endless litigation.
“As the present compulsory acquisition has many shortcomings, we will come out with a new land acquisition policy by adopting innovative methods like land pooling to create adequate land banks and to make available land for creating industrial parks and infrastructure.”
The budget also spoke of strengthening the manufacturing sector. The State, Mr. Panneerselvam said, was in talks with industrial houses that might attract 22 major projects, having an investment potential of nearly Rs.21,500 crore.
The government was also keen on promoting industrial development in the southern districts. A detailed project report was ready for the proposed self-sustainable industrial growth corridor on the Madurai-Tuticorin Highway.
It was proposed to increase the capacity of the Alangulam unit of the Tamil Nadu Cements Corporation Ltd. from the present two lakh tonnes to four lakh tonnes per annum at an estimated cost of Rs.165 crore. The capacity of the Ariyalur unit would be expanded from five lakh tonnes per year to 15 lakh tonnes at a cost of Rs.350 crore.
Mr. Panneerselvam said that as part of its policy of giving additional incentives to encourage investment in the micro, small and medium enterprises (MSME) sector, the Tamil Nadu Industrial Investments Corporation (TIIC) would provide credit to MSMEs with a three per cent interest rebate. The government would promote export-oriented coir and jute based industries with credit and technology support with a total outlay of Rs.100 crore in 2011-12.