Panel opposes state role in land takeover for private use

New Delhi, May 17 (IANS) A parliamentary panel Thursday suggested that the state should have no role in acquisition of land for private players, except in cases of infrastructure and social sector projects.

The report of the Parliamentary Standing Committee on rural development tabled in the Lok Sabha asked why should India persist with an anomalous practice which was not followed in developed countries like the US, Japan and Canada.

"The three principal factors of production are land, labour and capital...when the state has no role in acquiring labour or capital, why should it be involved in acquiring land?" said the panel.

"The public purpose should be limited to infrastructure and irrigation projects, besides schools and hospitals."

Suggesting that land acquisition must be done through the open market and at market prices, the committee said that public sector enterprises with a profit should be barred from acquiring land with the state's help.

The panel also suggested that the gram sabha's (village council) nod must be made mandatory for all land acquisitions.

All cases of land acquisition must entail compensation, rehabilitation and resettlement for the land sellers, the committee said.

Noting that land was a state subject, the panel said that the state governments should enact their own legislation for rehabilitation of land sellers.