Central government is mulling ways to clear a backlog of land cases which have become a hurdle in unleashing investment in order to boost local manufacturing. The move could also potentially help the government’s efforts to convince firms to uproot supply chains from China and set up shop in India.
The country’s planning body — the NITI Aayog — has crafted a new model Bill in which states will guarantee the accuracy of land titles and provide compensation in case of disputes.
It would replace colonial-era laws and require states to computerize all land records, link the details of landowners to those digital records and establish tribunals to resolve all outstanding cases within three years.
“Life will become easy if this system is put in place,” said Vinod Agrawal, Head of the government committee that drafted the proposed law. He added that similar land titling systems are in place in more than 80 countries, from Australia and the UK to South Korea and Thailand.
While the BJP controls Parliament and could easily pass the federal law, its success ultimately hinges on regional leaders who need to adopt laws based the model bill in their states. Clearer land titles would also help India attract more manufacturing as it works with Japan and Australia to build more resilient supply chains as tensions grow with China.
The government recently announced incentives for companies looking to move to India, part of a broader plan to increase the share of manufacturing in the economy to 25 per cent from 15 per cent.
