Acquiring land and taking permits in India have continued to be a vital bottleneck, preventing businesses and projects from completion targets.
Acquiring land and taking permits in India have continued to be a vital bottleneck, preventing businesses and projects from completion targets. “The main reasons for delay in timely completion of the projects are law and order problems, delay in land acquisition, delay in environment and forest clearances, funding constraints, rehabilitation and resettlement issues, permissions from local body or municipal corporation, utility shifting, contractual issues, etc,” Rao Inderjit Singh, MoS (Independent Charge), MOSPI, said in response to a Rajya Sabha query.
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Despite India being one of the only two economies in the list of top ten improvers for the second consecutive year in ‘Ease of Doing Business’ report of 2019, these bottlenecks have continued to plague manufacturing and infrastructure sectors in the country. “Global trade tension has definitely opened a brand new window for India, with a huge potential to expand the exports but India cannot completely fulfill the bulk demand due to the capacity shortage,” Sharad Kumar Saraf, President, Federation of Indian Export Organisations, told Financial Express Online.
“To improve the capacity and to make the most out of this opportunity, support from the government is of prime importance,” Saraf said, adding that the statutory land clearances and credit money stuck up with the government are the major roadblocks in capacity addition.
Source: Financial Express
