Wednesday, February 25, 2015

Land-acquisition...


No doubt Land is scarcest factor among all factors of production and without which no single production process can take-off because you need land to set up machinery or a place to start any process... But, there is a difference between land used for setting up infrastructure (transport and education units) and setting up factories... There is a natural question that beyond land, capital and labor both are scarce too and we cannot borrow internally too much without reducing or crowding-out capital for the private sector, that which investment is our priority or which can be delayed and ofcourse the crowd-in effect? The use of land to improve transport and schools and colleges are our immediate priority because without an educated workforce (the income and demand factors) and a good transport-system it is very difficult for the goods and services, and people to reach eachother (supply creates demand)... and INDIA’s supply-side is very weak... The government should bring the land-acquisition-bill only for transport and education centers and should leave the land-acquiring for companies/factories, between the buyer and seller and moreover fertile lands should be protected by bridges, least possible usage... Government should only be concerned with land acquisition which is most important. And, if the government is expecting demand then it must be ceased as an opportunity to increase revenues. Just like oil and hike in its duty...   

 

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