Get in Touch

Mar 06, 2015
You are here article details

New Land Acquisition Act Comes Into Force From January 1, 2014

By Saikat Mitra | 1/1/2014 2:41 PM Wednesday

The Indian economy has been growing at the slowest pace in a decade, and one of the reasons for this is the slowdown in the investment cycle. What could accentuate this slacked pace in the new year is the Land Acquisition Act, which comes into force from January 1, 2014. The bill was passed in the Monsoon session of Parliament in 2013 and on September 27, it received assent of the President of India, Pranab Mukherjee.

This new legislation replaces the 120-year old one and was framed with the intention of providing compensation to farmers in a fair and just manner. The salient feature of this Act is that it requires atleast 70% of the people whose land is being acquired to give consent for Public-Private Partnerships. This becomes 80% when the land is being acquired by any private player. Also notable is the fact that the compensation has been upped up to four times the market values in rural areas and twice the market value in urban areas.

Another key feature of the Act is that has been introduced with retrospective effect to provide justice in historical cases where no reward for land acquisition has been made. Moreover, if the land is being sold to a third party and the profits are more than 40%, these profits should be shared with the land owner.  A maximum of 5% irrigated, multi-cropped land may be acquired in a single district.

Although these clauses ensure fair and just compensation for farmers, the flipside is that land acquisition will become dearer for the companies. This means that project costs will remain on the higher side and many projects may become financially unviable. The power and realty sectors will be mainly affected.

Find More Articles on: Economy, Markets, DSIJ Mindshare

Related Readings

Top 10 companies with Lowest Foreign Institutional Investors (FIIs) Holding in BSE 100 Companies Exclusive

LatestMost PopularMarket Action

Breaking News

Sun Pharma to buy Glaxo's opiates business in Australia

Sun Pharmaceutical Industries has agreed to buy Glaxo Smith Kline' s opiates business in Australia to strengthen its pain management portfolio. The business consists of analgesics made from raw materials found in opium poppy plants, and includes two manufacturing sites in the states of Tasmania and Victoria. The firms did not disclose the financial details of the deal but it is expected to be closed by August.

Miscellany: Key Highlights of Budget 2015: relating to Direct Taxes

JayeshDadia- Chartered Accountant, Key Highlights of Budget 2015- relating to Direct Taxes

Major Influencers of the U.S. Dollar Index

The U.S. Dollar, as a currency, holds a lot of importance and relevance when it comes to Foreign Exchange. It is one such currency that it practically used for all international transactions. That is the reason why it is known as a Global currency.

Naveen Mathur, Associate Director - Commodities & Currencies, Angel Broking explains the factors that impact this currency


The recommendations provided in this column are taken from different market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Dalal Street Investment Journal may or may not subscribe to these recommendations.

Union Budget 2015 - What’s In It For You?

It’s a budget of hits and misses but does have the potential to pave the way for economic growth, By Hemant Rustagi
CEO, Wiseinvest Advisors 

Indices Flattish, Ends On Positive Mark.

The Indian markets saw some sluggish momentum in today’s session. The Healthcare index continues to make a gradual progress and surges more than 400 points. Some Banking and Auto stock also recovered well, up around 100 points each. Mid-caps and Small-Caps closed in green territory. The Nifty index closed up by 15 points at 8937, while Sensex was up by 68 points at 29448.


An investment isn’t just the means to park your funds in a stock or any such asset class and then sit back and watch it grow. There are several methodologies that come into play and these are known as investment styles in accordance with the theories they are based on. This article sheds light on some of the popular approaches used by investors for both long and short-term gains

Special Report: 2015 The Year of IPOs

Indian equities are making new highs in almost every month and an optimistic picture can be seen in the Indian stock markets since 2014 Lok Sabha elections. Considering the way the governmnet started implementing the reforms in the country, 2015 will be an action packed year from point of view of the primary capital markets. Article by Vivek Paratne

Stock Recommendations For Your Portfolio

The scrips in this column have been recommended with a short-term investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

Stock Pick from Financial Institutions

Low Priced Scrip is hidden gem, today's underdog, a stock with future potential that is expected to fetch returns within one year. This is a stock picked carefully based on a fundamental analysis of the company. The company recommended as the Low Priced Scrip for this issue is an emerging player in Financial Institutions.

DSIJ Breakfast News

Start your day with DSIJ Breakfast Roundup, wind up with DSIJ Market Roundup. Register now to get the day’s market outlook, global cues, economic trends, top corporate news delivered straight to your inbox.

mail to

Start your day with DSIJ Breakfast Roundup, wind up with DSIJ Market Roundup. Register now to get the day’s market outlook, global cues, economic trends, top corporate news delivered straight to your inbox.

mail to  *


(* No Research/Stock Queries)
Name :
Email ID :
Cell Number :
Message :