Gujarat follows best land policy: DIPP study

Praises Maharashtra, AP, Rajasthan on other factors.

By: ENS Economic Bureau | New Delhi | Updated: May 6, 2014 11:53:24 pm

A study commissioned by the Central government has found that the Gujarat government follows the best practices for acquiring land in India.

The study by the department of industrial policy and promotion (DIPP) has also said that the state has the best environmental licencing procedures. In the course of the election campaign, Congress leaders, including Rahul Gandhi, have criticised the Gujarat government for allegedly giving away land for a song to industries.

But the study, prepared by Accenture and hosted on the DIPP website, notes, “The model followed by Gujarat Industrial Development Corporation oversees and ensures reduction in complexity across all processes in getting land. And, although, there might be some implementation issues but it is still wholesome and addresses concerns of all the relevant stakeholders.”

The study, part of the broader best practices for improving business in the country, has classified, along with Gujarat, others like Maharashtra, Andhra Pradesh and Rajasthan as among the handful of states which have models worth following by other states.

Surprisingly, for finance and tax-related compliances, West Bengal figures in the list for single-point information dissemination along with Karnataka for integrated and comprehensive system for VAT.

The study also praised Andhra Pradesh for land and building related compliances, Maharashtra and Rajasthan for labour law-related compliances, and Bihar for single window clearances. The study comes amid the ‘Doing Business Report 2014’ of the World Bank ranking India at the 134th position among 189 economies. The country scored poorly on parameters of protecting investors, getting electricity, getting credit and registering property, among others.

Along with global factors, investors both foreign and domestic have been highlighting the indecisiveness, lack of transparency, poor governance, corruption and lack of ease of starting and conducting business for decline in investments in the country.

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