Ranchi, Sept. 19: Public sector units (PSU) should be ready to hand back extra land owned by them to the state government.

The draft industrial policy prepared by the industries department says excess land being retained by industrial units — including central PSUs and state government undertakings —for more than 20 years, will be taken back. There are four major central PSUs operating in the state — CCL, BCCL, HEC and Bokaro Steel.

“The actual requirement of the industries will be reassessed and land in excess of their requirement, which is not being used for the purpose for which it was allotted, will be taken back by the government. It will enable the state to offer land readily to investors as and when required,” the draft policy said.

The draft policy, making a bid to address the existing issues hampering industrial growth, was put up today on the official website of the industries department, seeking response from the public within a fortnight.

Speaking to The Telegraph, industries secretary A.P. Singh said his department will give final shape to the draft policy after accommodating public response and place it for cabinet approval.

The proposal to take back excess land from PSUs was based on the recommendation of the Bibek Debroy Committee, he said, adding that it makes little sense to allow Bokaro Steel to retain 33,000 acres to produce 4.5MT of steel.

“We have tried to address the existing issues in the draft papers,” he said.

The draft policy states that Industrial Area Development Authorities (IADA) will be responsible for acquisition of land and development of infrastructure such as roads, drainage, parks, water supply and public utilities for their respective command areas.

According to the draft, efforts will be made to create a land bank in each district by acquiring a minimum of 200-500 acres and demarcating them as industrial estates with provision of basic industrial infrastructure.

The policy stresses that Jharkhand Voluntary Land Acquisition Rule 2010 and Panchayat Extension to Schedule Area Act (PESA) will be applicable for any type of land acquisition — voluntary, involuntary or direct purchase from raiyats.

Government land will be transferred to the investing company only when the raiyat and other land availability has been ensured, the policy said.

The draft policy makes it clear that it will avoid double crop agricultural land and minimise displacement. “Wasteland or degraded forest land may be made available by the government on long term lease after taking prior approval from the government of India for plantation development or tourism purposes which will encourage forest based and tourism industries,” it added.

The government will also earmark 25 per cent of the available allotable land in any new industrial area for land losers who have lost one acre or above.

The 2001 industrial policy did not include a comprehensive policy on land acquisition. “Land is a major issue now for industrialisation. So, we have stated in clear terms how land can be acquired, leaving no scope for various departments to take contradictory stand on the issue,” Singh said.

The draft paper, however, said considerable progress in industrialisation had been achieved since the 2001 policy was put in place. “As many as 26 mega industries, 106 large and medium industries and 18,109 micro and small industries have been set up in the state during the period with an approximate investment of Rs 28,424.06 crore and about 63,000 people has so far got employment in these industries,” it said.

The draft policy also proposes to modify the Rehabilitation and Resettlement (R&R) Policy 2008 to offer adequate package to land owners whose land is acquired for development. “Compensation will be available not only to the people who are within the affected area of the project but also to those living on the periphery. The policy will also have provision to make land owners partners in the project by offering certain equity to them,” it added.

The policy says that tourism, information technology (IT) and biotechnology related units including laboratories may be allowed in urban areas irrespective of the earmarked use shown in current master plan prepared and being implemented by the urban development department.

It has proposed to allot mines/captive mines on preferential basis to the investing companies who have put up their plant in the state for value addition to the raw material.

The state government shall take proactive steps to promote/develop two industrial corridors, namely Koderma-Baharagora and Ranchi-Patratu-Ramgarh Road.

Enthused with the success of Jharcraft, the policy also talks of giving incentives for promotion of sericulture, handloom and handicrafts. “Jharcraft will be given assistance of 75 per cent of the total project cost incurred for setting up an institute of quality apparel training,” it said.

The policy also proposes to enter into technological collaboration with overseas corporate bodies/multinational companies/NRIs for foreign investment and latest technologies in selected sectors.