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Land use term under tenancy Act can go up from 3 to 5 years

Move to help investors complete their commercial projects in time

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Tribune News Service

Pratibha Chauhan

Shimla, July 30

The government can amend the Land Reforms and Tenancy Act 1972 in the monsoon session of the Vidhan Sabha to grant five-year time instead of the present three for the utilisation of land bought in exemption of the law, which bars the non-bona fide Himachalis to purchase land in the hill state.

A relief for investors

  • As per the proposal prepared by the Revenue Department, the two-year time will be extended to three years and one-year extension to two years
  • As per laws, any land bought by outsiders in exemption of the Land Reforms and Tenancy Act is vested back in the government if the allottee is unable to use it
  • In fact, this provision is viewed as a major inhibiting factor for big investment coming in the state as the Act is considered prohibitive

The move is aimed at helping investors or people who buy land for residential or horticultural purposes to comfortably complete their project. It has been noticed that in most of the case where outsiders had bought land in Himachal for the industry, hydro-power project, cement plant or any other project, three-year time, which includes one year extension, is found to be insufficient for completion.

As per the proposal prepared by the Revenue Department, the two-year time will be extended to three years and one-year extension to two years, giving investors five years.

As per revenue laws, any land bought by outsiders and non-bona fide Himachalis in exemption of the Land Reforms and Tenancy Act is vested back in the government if the allottee is unable to use it. In fact, this provision is viewed as a major inhibiting factor for big investment coming in the state as the Act is considered prohibitive.

Several investors have approached the government that the three-year period for completion of their project must be enhanced. “We propose to bring about an amendment in the Assembly session, commencing on August 10, so that investors are able to complete their projects,” said Onkar Sharma, Principal Secretary (Revenue).

There have been instances where the allotted hydro-power and cement projects could not come up within three years, facing threat of vesting back of the land with the government. “The permissions from various agencies like the State Pollution Control Board, the Ministry of Environment and Forest, the Town and Country Planning or the Industries Department take time. We cannot start work till permissions are received,” said an investor.

In fact, very often the Act is considering inhibiting in development of the state but since it is viewed as sacrosanct in protecting the precious land resource from the wealthy outsiders, the successive BJP and Congress regime have desisted from tinkering with it for fear of a backlash.

Besides the cumbersome permissions, another problem is the limited working season, especially in the tribal and hard areas, where a majority of the power projects are located. With harsh climatic conditions like snow and rainfall, the working season gets curtailed.

About The Author

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.

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