Finance Minister Arun Jaitley vows to push land purchase reform

The government will push ahead with reform to a land purchase law blamed by business for slowing industrial projects, even if there is resistance to loosening the rules, Finance Minister Arun Jaitley said on Sunday.

Jaitley said changes to the law were needed to fulfil Prime Minister Narendra Modi's vision of building 100 new "smart" cities across the country.

"Some changes will be necessary, we will first attempt to reach a consensus, if that's not possible we will go ahead and take the decision," the Finance Minister said, speaking at a seminar in the national capital.

The law was passed in 2013 with support of the PM Modi's Bharatiya Janata Party when it was in opposition, and seeks to set fair compensation for loss of livelihood for farmers who sell their land to industrial or infrastructure projects.

However, its complex procedures have made it very hard for large-scale industrial projects to acquire the land they need.

The government would need parliamentary approval to change the law, and might struggle in the upper house where it does not have a majority.

Jaitley also said he hoped to begin a delayed programme to sell stakes in public sector companies "in the next couple of days". The finance minister said the government was aiming to bring down its holding in state-owned banks to about 52 per cent.

(Reuters)