PRADEEP SANTHOSH S 14DM148 PGDM SECTION C
Land Acquisition Act empowers Government Acquisition of private land for public purpose or for assignment to land less poor for house sites. RDO is the land acquisition officer. Requisition for the land has to be received from the requisitioning authority. The first stage in the land acquisition process is Draft Notification. Joint inspection of LAO and requisitioning authority has to be conducted. During the Draft Notification stage proposal are sent to the Collector along with various documents such as Draft Notification, joint inspection note, extract of Fair Adangal for the lands, extract of Village Account no. 3 etc.
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013[1] is an Act of Indian Parliament that regulates land acquisition and provides laid down rules for granting compensation, rehabilitation and resettlement to the affected persons in India. The Act has provisions to provide fair compensation to those whose land is taken away, brings transparency to the process of acquisition of land to set up factories or buildings, infrastructural projects and assures rehabilitation of those affected. The Act establishes regulations for land acquisition as a part of India's massive industrialisation drive driven by public-private partnership. The Act replaced the Land Acquisition Act, 1894, a nearly 120-year-old law enacted during British rule.
The bill was introduced in Lok Sabha in India on 7 September 2011.[2][3] Out of the 235 members who voted on the bill, 216 backed it while 19 voted against it.[citation needed] The Act was passed on 29 August 2013 in the Lok Sabha (lower house of the Indian parliament) and on 4 September 2013 in Rajya Sabha (upper house of the Indian parliament). The bill received the assent of the President of India, Pranab Mukherjee on 26 September 2013.[4] The Act came into force from 1 January 2014.[5][6][7]

Land Acquisition Act-2013 (AP)-Problems

AP revenue officials have told Andhra Pradesh Chief Minister N. Chandrababu Naidu that according to new Land Acquisition Rehabilitation, Resettlement Act, acquisition of land, not only for construction of the new capital city, but also for any new industry, will be difficult.
They said in addition to the lengthy process, there are stringent rules in the Act for land acquisition and unless some rules are changed, the government cannot acquire land for any purpose.
The erstwhile UPA government had brought in the new Act, which had come into force from January 1, 2014. Interestingly along with BJP chief ministers, Congress chief ministers have also opposed the new Act and demanded that it be amended.
According to the new Act, to acquire land in a village, the Grama Sabha must approve.
That too, in the Grama Sabha, 70 per cent will have to accept the proposal and 25 per cent of the effected people must attend.
After that, the Social Impact Assessment (SIA) committee will have to clear it.
Another rule is that when land is acquired, those whose lands have been acquired will have to be rehabilitated, which means that the government will have to acquire additional land to rehabilitate the affected people.
Mr Naidu has asked the Revenue officials to study the Act and prepare a report regarding which rules should be changed.
The state government will send the report to the Centre, requesting changes in some rules in the Act.
Meanwhile, Union Rural Development Minister, Mr Nitin Gadkari, recently held a meeting with state Revenue ministers and discussed the implementation of the new land acquisition Act.
He also said that the government may change some provisions of the Act though the sections that dealt with compensation, rehabilitation and resettlement would not be changed.
He said that the government might make some amendments to make it easier regarding Grama Sabha and SIA approval. The Government of Andhra Pradesh is seeking amendments in the new Land Acquisition Act that came into being from January 1, 2014 as its provisions are making the task of acquiring land difficult.
“Acquisition of private land will take 38 to 44 months according to the provisions of the new Act as the State governments have no powers to arbitrate on the compensation to be given to land owners in addition to the specified rate. Such clauses make things very difficult for new governments like A.P. which needs acquisition of land on a large scale for different public purposes”, Deputy Chief Minister K.E. Krishnamurthy, who is also Revenue Minister, said here on Friday.
Though location for the new State Capital is yet to be decided, the A.P. government would be required to acquire large chunks of land for Capital, industrial corridors, growth centres, national and state-level institutions, the Minister said. The draft seeking amendments was circulated to the Law Department after taking the opinion of the Advocate General and once finalised it would be sent to the Centre requesting it to make necessary changes.
Stating that the new Land Acquisition Act was not being implemented in any State yet, Mr. Krishnamurthy said Karnataka and Maharashtra governments had framed some draft rules for using the new Act. Even A.P. was required to formulate new rules to facilitate implementation of the new Act as the 1894 Act that was in force till 2013-end stands repealed now.
Admitting that realtors were creating artificial hike in the land rates by speculating the locations of new Capital and other vital institutions in A.P., the Deputy Chief Minister said the government would not hesitate act sternly against them under the Prevention of Speculation in Immoveable Property Act, 1954. However, the government could act only if there was proof that the lands were being sold in excess of the market rate.
The Minister said no land registrations had taken place in the State in the recent months though there was no ban on it, but the transactions were only in the form of agreements.

The Land Acquisition Act, 1894 is a law in India and Pakistan that allows the government to acquire private land in those countries. “Land Acquisition” literally means the acquisition of land for some public purpose by a government agency from individual landowners, as authorised by the law, after paying a government-fixed compensation to cover losses incurred by landowners from surrendering their land to the concerned government agency. In India, a new Act, The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was passed by the Parliament in 2013 to repeal this Act.
The Land Acquisition Act, 1894 (AP):
Andhra Pradesh Land Acquisition (Negotiation Committee) Rules, 1992 were issued under section 55 of the Land Acquisition Act, 1894 (Act 1 of 1894). In the above Rules were amended adding the Additional Commissioner (Project & Planning) / Chief City Planner, Engineer-in-Chief and concerned Zonal Commissioners as Members of the Negotiation Committee in respect of acquisition of properties in Municipal Corporations instead of members at clauses (5) and (6).
Special Chief Secretary to Government and Chief Commissioner of Land Administration, Andhra Pradesh, Hyderabad has proposed to amend rule 4 of the said Rules by including the Chief General Manager (Chief Engineer) of Hyderabad Metro Rail Limited as one of the members of the Negotiation Committee in respect of acquisition of lands by the Greater Hyderabad Municipal Corporation for the purpose of Mass Rapid Transit System (MRTS) Project and payment of compensation for land acquired under negotiation.
The Government have examined the recommendation carefully and decided to accept the same. Accordingly, the following Preliminary notification will be published in the Andhra Pradesh Gazettee. The Commissioner of Printing Stationery and Stores purchases,Hyderabadis requested to furnish 50 fifty copies of the same immediately.
PRELIMINARY NOTIFICATION
The following draft of an amendment to the Andhra Pradesh Land Acquisition (Negotiation Committee) Rules, 1992 issued in G.O.Ms.No.1050, Revenue (LA) Department, dated the 17th October, 1992 and published in Rules Supplement to Part –I Extraordinary of the Andhra Pradesh Gazettee, dated the 26th October, 1992 as subsequently amended which it is proposed to be made in exercise of the powers conferred by sub-section (1) of section 55 of the Land Acquisition Act, 1894 (Act 1 of 1894) is hereby published for general information in the Andhra Pradesh Gazettee as required under sub-section (2) of section 55 of the said Act.
Notice is hereby given that the said draft will be taken into consideration by the Government on or after the expiry of thirty days from the date of publication of this Notification in the Andhra Pradesh Gazettee and that any objections or suggestions which may be received from any person thereof within the aforesaid period will be considered by the Government. The objections and suggestions if any should be in writing either in English or Telugu and addressed to the Principal Secretary to Government, Revenue (LA) Department, Government of Andhra Pradesh, Hyderabad-500022.

AMENDMENT
In rule 4 of the said rules, in the proviso the following words shall be added at the end, names:- “However in respect of acquisition of properties for the Hyderabad Metro Rail Project the Chief General Manager (Chief Engineer), Hyderabad Metro Rail Limited shall also be a member of the Level Negotiation Committee

Land Acquisition process: Draft Notification | Draft Declaration | Preliminary Valuation | Award | Negotiation Committee & Consent Award | Claims u/s 18 | Sec. 28A Re-determination of the compensation | Accounting procedure after passing the Award | Reconveyance | Amendment for paragraph 32 of B.S.O. 90 | Post Award Action | Deduction of income tax on interest |

SEZ:
The term special economic zone (SEZ) is commonly used as a generic term to refer to any modern economic zone. In these zones business and trades laws that differ from the rest of the country. Broadly, SEZs are located within a country's national borders. The aims of the zones include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone liberal policies are introduced. There policies typically regard investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays.
The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI),The benefits a company gains by being in a Special Economic Zone may mean it can produce and trade goods at a globally competitive price.The operating definition of an economic zone is determined individually by each country. In some countries the zones have been criticized for being little more than Chinese labor camps, where labor rights are denied for workers.

SEZ AP: State/Union Territory | Number of operational Special Economic Zones (June 2012) | Number of SEZs formally approved (June 2012) | Total (Operational + Approved) | Andhra Pradesh | 36 | 116 | 152 |
The Andhra Pradesh government has slapped notices on the developers of special economic zones (SEZs), asking them to explain delays in project execution and seeking details on the use of land allocated to them, after opposition parties alleged that many SEZs were misusing land acquired with government support.
A body representing SEZ developers, however, blames the delays on the global economic downturn and the government’s failure to provide assured infrastructural support.
“Of the 73 notified SEZs so far in the state, with a projected investment of some Rs70,000 crore, only 19 SEZs have become operational, attracting an investment of some Rs10,000 crore,” said Kanna Lakshminarayana, Andhra Pradesh’s minister for major industries and commerce.
“The government would take back the land allotted to the developers of SEZs if they failed to convince the authorities on delays in setting up industrial units or (have been) found using the lands for other purposes,” Lakshminarayana warned.
The notified SEZs had acquired 27,722 acres of land across the state, the minister added.
Opposition parties have claimed that the developers of these SEZs were trying to make money by using the land for real estate development.
T. Sunil Reddy, chairman of the Andhra Pradesh SEZ Developers’ Association, said the global economic slowdown was largely responsible for the delay in the implementation of SEZ projects. The government’s inability to provide the infrastructure assured to them had also played a major role in raising the development cost and turning the SEZ projects unviable, he added.
As many as 42 SEZs are coming up in state capital Hyderabad or its neighbouring districts of Ranga Reddy, Medak and Mahaboobnagar, where the cost of land acquisition is very high.
B.R. Meena, vice-chairman and managing director of Andhra Pradesh Industrial Infrastructure Corp. Ltd (APIIC), the nodal agency for SEZs in the state, admitted that government agencies had failed to provide the assured infrastructure to many SEZ developers.
“APIIC is developing 20 SEZs on its own and had assisted another 23 SEZs in acquiring land. While two more SEZs are also (being developed) by the government agencies belonging to urban development, 28 SEZs are being developed by the private players,” said Meena.
APIIC, he added, was preparing a report on how many SEZs had failed to take off despite the government fulfilling its infrastructural obligations.
Reddy of the SEZ developers’ association said the absence of additional tax benefits in the proposed extension of the Software Technology Parks of India Scheme was also holding back small and medium information technology (IT) and IT-enabled services (ITeS) firms from moving to SEZs.
“Another major reason for IT/ITeS units not showing interest in SEZs is the proposed new direct tax code that threatens to take away tax exemptions to SEZs,” said the chairman of a private IT/ITeS SEZ, who did not want to be named.
As many as 43 SEZs in Andhra Pradesh were to host IT and ITeS firms, while the rest proposed to host units of industries, including pharmaceuticals, biotechnology, aerospace, hardware, semiconductors, leather, footwear, gems and jewellery, apparel, building products, alumina, printing paper, and food processing.
A number of IT/ITeS SEZs have already sought extension from the Union commerce ministry, while some have sought to denotify, either completely or partially, so they can use the allotted land for other purposes.
Komatireddy Venkat Reddy, Andhra Pradesh’s IT minister, said his ministry had served notices on IT/ITeS SEZ developers to submit the details on land utilization.
“We have decided to take back the unutilized land from these SEZs and allot them through auction to small and medium IT/ITeS firms interested in setting up their units,” he said.
The Andhra Pradesh government, which has announced the highest ever annual budget of Rs1.13 trillion for 2010-11, plans to raise some Rs3,500 crore from the sale of land to fund its developmental programmes.
But APIIC’s Meena said the government could take back land only from those SEZs whose land acquisition had been assisted by government agencies. Private SEZ developers were free to do anything with their land assets.
There are 18 IT/ITeS SEZs being developed by private players, mostly in and around Hyderabad.
This 1989-batch IAS officer of the West Bengal cadre hails from the city and has to his credit a gold medal in MBA from Andhra University and masters in international development policy from Duke University of the US. Having served in various capacities in West Bengal, including executive director of West Bengal Industrial Development Corporation, director of industries department as well as special secretary in the commerce and industries department, in 2009 he got a chance to head back to Vizag after being appointed development commissioner of Visakhapatnam Special Economic Zone (VSEZ) that covers SEZs in Andhra Pradesh, Chhattisgarh and Yanam. In a chat with Manish of TOI, VSEZ development commissioner S Kishore talks about the importance of SEZs and exports for the country and Vizag.

Why are SEZs important to the country?

SEZs are crucial for generating additional economic activity as well as for promotion of exports of goods and services. They are also a means of creating employment opportunities and lead to the development of infrastructure facilities. At the same time, SEZs provide an opportunity for promotion of investments from domestic and foreign sources.

How many SEZs are operational in Andhra Pradesh, Chhattisgarh and Yanam?

While there are 40 operational SEZs in Andhra Pradesh, there is one in Chhattisgarh. Yanam still doesn't have any SEZs.

Have any more SEZs been formally approved in Andhra Pradesh? How many and where are they coming up?

As of now 109 have been formally approved in India, out of which 78 are notified in the state of Andhra Pradesh. Three applications are in the process for setting up SEZs in AP. While one is slated to come up at Kakinada, the other two are in Visakhapatnam.

What is AP's position vis a vis other states in terms of approved SEZs and value of exports?

AP has the highest number of approved SEZs but stands 5th after Gujarat, Karnataka, Tamil Nadu and Maharashtra in terms of value of exports.

What measures are being taken to boost investments in SEZs in the state?

The AP government took the initiative to develop SEZs in the very beginning, putting the state at an advantage. Currently the focus is on promoting sectors such as aerospace and defence at Hyderabad. This apart, we are looking at leveraging Assistance to States for Infrastructure Development of Exports (ASIDE) funds for export infrastructure facilities. In ASIDE, 80% of the funds are devolved to the states for taking their own decisions on infrastructure development needed to boost exports. For example, it can be for road connectivity or setting up of effluent treatment plants or power stations. We are also coordinating with the state government for speedy clearances of projects. Another major initiative is that we are holding investor meetings to resolve infrastructure and policy issues.

What is the quantum of investments in SEZs located in the state so far? What is the value of exports from SEZs in AP in the last and current fiscals?

The state has received investments of around Rs 25,000 crore in SEZs until now. While the value of exports was around Rs 26,147 crore in the 2012-13 fiscal, it has already crossed the previous year's value in January this year. In 2013-14 fiscal, up to January 2014, we have seen exports worth Rs 26,558 crore. We expect a growth of around 8-10% by the end of the current financial year.

What are the major sectors operating in SEZs in AP and their percentage share in exports?

While IT/ITES contribute a bulk of the exports at about 57%, gems and jewellery have a share around 16%. The pharmaceutical sector has a share of around 10%, followed by apparel, leather and granite.

Which SEZs are among the major contributors to exports from Andhra Pradesh?

The Hyderabad Gems SEZ, Visakhapatnam Special Economic Zone (VSEZ), DLF Commercial Developers Limited, Wipro Limited, Divis Laboratories Limited and Brandix India Apparel City, among others, are the major contributors to exports.

How many SEZs are located in Visakhapatnam district and what is the value of exports during the last financial year and current fiscal?

Currently, we have around eight SEZs in the district. During the 2012-13 financial year, we registered exports to the tune of around Rs 6,030 crore and this year, until the end of January 2014, we have witnessed exports of Rs 5,000 crore.

What are the major sectors operating in the SEZs located in Visakhapatnam district and their percentage share in exports?

The pharmaceutical industry has a major share contributing around 32%, followed by the apparel sector with around 16% and gems and jewellery at 14% share of exports.

What has been the growth in exports in SEZs in Vizag during the last three fiscals and what growth do you expect in the coming years?

In 2010-11, exports were around Rs 3,520 crore and in 2011-12 grew to Rs 4,620 crore. In 2012-13, it was around 6,030 crore. Overall we have been seeing an average growth of 30% in exports. We expect average growth to be 15-20% in the coming years.

Has there been any impact of the ongoing political uncertainty in the state on exports during the current fiscal?

Two issues put us on the back foot this fiscal -- the Samaikyandhra agitations and power cuts. But we are still doing marginally better than last year. We expect a growth of around 8-10% in exports by the end of this fiscal.

What are the major concerns raised by investors about AP?

Some of the big ticket concerns raised are about political agitations, power crisis, infrastructure issues, imposition of MAT and uncertainty on implementation of Direct Tax Code (DTC). While the IT SEZs were somewhat protected during the power crisis, other sectors were affected.

Why is investing in SEZs still a profitable proposition?

SEZ is the only scheme where income tax benefits are extended and it also provides for a hassle-free environment. Benefits are available for creation of all infrastructure facilities and it takes a small lead time to start a business as ready-made plots are available. Flexibility is the key to any entrepreneurial venture and SEZs provide the best option as you get duty benefits while setting up projects and all you have to do is be a net foreign exchange (NFE) earner at the end of five years.