'What HDFC chairman Deepak Parekh said last week is true as nothing has changed on the ground.'
Top India Inc CEOs are worried over the government’s move to withdraw three key bills from the Parliament and logjam over land bill and say this can dissuade investments in the country and especially in the insurance sector.
The CEOs say the frequent attacks by Hindu nationalist groups, including those by RSS on minorities, is further vitiating the business atmosphere.
“This is certainly a big worry. The Modi government was showcasing these three bills as its reform agenda.
"But the back down shows that the government does not have the means to get these passed in the Parliament,” said a CEO asking not be identified.
“What HDFC Chairman Deepak Parekh said last week is true as nothing has changed on the ground.
"The government should also control the fringe elements as it is giving bad impression to investors abroad," he added.
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Last week, Parekh had said impatience is creeping in among businessmen, as nothing has changed on the ground in the first nine months.
On Tuesday, the Modi government had to abandon the attempt to have a joint sitting of Parliament to ratify three pieces of legislation, including one on liberalisation of the insurance sector, coal and Motor Vehicles bill, due to hostile opposition in the Rajya Sabha.
The Land acquisition bill is facing opposition from other political parties as they term the bill as pro-business houses and anti-farmer.
Though the coal bill is not yet passed, the government went ahead with auction of mines, which received good response from the companies that need the mines to keep their power and steel plants running.
The Land Acquisition ordinance was touted by India Inc as government’s willingness ready to undertake bold reforms for development.
Fast-tracking procedure for defence, rural infrastructure, affordable housing, industrial corridors and PPP projects is laudable.
The CEOs say making land acquisition easier will kick start a large number of stalled projects and will also re-invigorate investment and growth cycle.
In fact, soon after the ordinance was enacted in December last year, the Maharashtra Government cleared the development of two upcoming industrial-cum-residential hubs in the Mumbai.
The Modi government came out with Land ordinance to encourage infrastructure projects like roads and airports which were stalled due to delay in land acquisition.
Many projects became unviable due to a sharp rise in land prices.
According to CMIE, around 70 projects worth Rs 3.52 lakh crore (Rs 3.52 trillion) have been stalled over the past two years because of land acquisition problems.
Image: A folk dancer performs during Republic Day celebrations at Himmatnagar town, about 69 km (43 miles) east from Ahmedabad. Photograph: Amit Dave/Reuters
