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Amid the political stand-off over the Land Acquisition Bill, the government is considering to use the vast land tracts available with the state run companies for infrastructure and industrial projects, including those under the plug and-play mode. In this proposed mode, the government will ensure that all clearances and linkages are in place before the project is awarded through a transparent auction system. Deliberations are being carried out on the availability and use of surplus land available with central public sector enterprises (CPSEs) and mostly sick units.

Source: ET

SNP Insights

Land availability and lack of clearances are some among the main factors which retards the growth of  infrastructure in India. Some of the new as well as  delayed multi million infrastructure projects due to land availability may breath new life with the availability of such lands under plug and play mode. But this cannot be completely relied on as there may be cases where the land requirement for such projects and land availability may be at different locations. Even if proper locations are available for such projects, the government may have to tackle many legal issues before making such land available for infra projects.