The IRDA vide their presentment dated 14th July 2000, sing Registration of Indian Insurance Companies Regulation, 2000 stipulates that every insurance company in the concern of life insurance shall put and at all clip maintain invested non less than 15 % of his controlled financess in Infrastructure and Social sector. Besides, those insurance companies who are in the concern of General Insurance ( i.e. non-life insurance ) are required to put and at all clip maintain invested non less than 10 % of their controlled financess in Infrastructure and Social sector. For this intent, IRDA defines substructure to include route, main road, Bridgess, airdrome, port, railways including BOLT, route conveyance system, H2O supply undertaking, H2O intervention system, solid waste direction system, irrigation undertaking, industrial Parkss, sanitation and sewage system, generation-transmission-distribution of power, telecom, undertaking for lodging, or any other public installation as may be notified in the official gazette.
For an substructure company, Section 80-IA of the Income Tax allows tax write-off of 100 % net income from its income during initial 5 old ages of operation and so 30 % tax write-off of net income from income during another 5 old ages. For this purpose substructure covers electricity, H2O supply, sewage, telecom, roads & A ; Bridgess, ports, airdromes, railroads, irrigation, storage ( at ports ) and industrial parks/SEZ.
Mega undertakings ( chiefly substructure ) receive a ample investing ( ~10 % ) of the gross fixed capital formation in India. Land acquisition has been the major ground for holds in the undertakings. However, there has been a steady addition in the proportion of undertakings running on agenda and a crisp diminution in the proportion of undertakings with cost overproductions. These achievements have been achieved due to better funding, undertaking direction, and reform in the regulative models related land acquisition facets.
The credence of a user fee and development of alternate beginnings of gross have helped pull larger investings in mega undertakings. With increasing private sector engagement, holds due to project direction are expected to cut down. The alterations in the regulative model on land acquisition issue is move in the right way. However, methods used for appraisals related to set down acquisition is still manual, doing the whole procedure clip devouring. Technology could be a good instrument in cut downing the clip required for these appraisals every bit good as in conveying transparence in the system. Decentralization with capacity edifice at the province degree would besides assist in the long tally in cut downing these holds.
The National Highways Act of 1956 had commissariats for geting land through a competent authorization ( a individual authorized by the cardinal authorities by presentment in the official gazette ) . Under the Act, publication of the purpose of the authorities to get land, studies, hearings of expostulations, and the declaration of acquisition were to be completed within a twelvemonth. This Act reduced the clip frame significantly. This Act included commissariats for compensation to merely the rubric holders based on the market value of the land, extra payments for trees, harvests, houses, or other immoveable belongingss, and payments for harm due to break uping of land, abode, or topographic point of concern.
Poor compensation and undervalued market monetary value of land have led to many differences by the affected population. The undervaluation was every bit high as four to ten times, due to both regulative arbitrage ( authorities has to supply clearance for land usage alteration ) and information dissymmetry ( title holders may be hard to place due to hapless record maintaining ) . As of November 2008, the cardinal authorities was sing the alteration of the prevailing Land Acquisition Act by modifying the definition of aa‚¬A“public intent, aa‚¬A? increasing the compensation bundle, enforcing limitations on non-used land, and simplifying the procedure of difference declaration.
The villagers are non allowing the building contractor appointed by RVNL to set about the activity of earthwork and span building on the land already acquired, both private and authorities. The ground for agitation by villagers is that in some of the small towns, the rates paid for province authorities land are 10 to 20 times higher than that for private land. For a comparative statement of monetary value ( village-wise ) of the Rayati land and authorities land is enclosed ( see Annexure Table A18.1 ) . Such a broad fluctuation in the pricing of land has resulted in bitterness among the private landholders. The villagers are demanding the same rate for compensation as is being given for authorities land. The District Collector, as per the Orissa Government Settlement Rules, should hold determined the monetary value of the authorities land on the footing of minutess made for the private land in the locality. Alternatively,
In some countries, even the authorities land is in ownership of husbandmans who are raising harvest on this land without payment of any revenue enhancements or levies. They are now demanding compensation at the same degrees as those given to other title holders of private land. Since they do non hold rubric to the land, it is evidently non possible to allow them compensation. Similarly, the forest section had permitted project-related building on some forest land, which lacked tree screen. However, it is found that this land is besides being cultivated by non-title holders and they are non allowing the building without compensation.
Tehsildars have levied Ce for authorities land being acquired at the rate of 75 per cent of the capitalized value, which works out to Rs 10 lakhs per acre. As a consequence of the above troubles in geting land for the undertaking, the work advancement has been slow and the revised cost of geting the land is now estimated at Rs 54.5 crore, which is manner above the original estimated cost ( as in April 2005 ) of Rs 23.7 crore. This has had an inauspicious impact on the undertaking financials. The chief lesson from this instance is that in the absence of full cooperation of the province authorities and its officials, railroad undertakings can be unduly delayed and viability affected.