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Gujarat land acquisition model is the best: Commerce Min

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New Delhi: A Commerce and Industry Ministry sponsored report today showcased the Gujarat model of land acquisition as the best practice, which can be emulated by other states with some modifications, to improve the business environment.

The report on ‘Best Practices to Improve the Business Environment Across States/UTs in India’, prepared by consultancy firm Accenture on behalf of the Department of Industrial Policy and Promotion, also talks about the best practices in Karnataka and Maharashtra on issues related to labour management and trade and investment facilitation system.

“Although we have chosen to showcase Gujarat Industrial Development Corporation’s (GIDC) model for land-related intervention as the best practice, some other states have taken initiatives to help businesses to get land for setting up facilities,” it said.


Land acquisition, it may be noted, has become a controversial issue in the ongoing Lok Sabha elections, with Congress accusing Narendra Modi-led BJP government in Gujarat of giving cheap land to business houses.

The report said Gujarat has “a very simplified land acquisition procedure in the state with minimum direct government participation. “An entrepreneur can approach GIDC for a speedier acquisition with fewer hassles,” it said.

With regard to land acquisition, it also cited examples of Haryana and Andhra Pradesh.

As regards environmental clearances, the report praised the practices adopted by the Gujarat Pollution Control Board (GPCB).

“The GPCB has adopted the (various)features in the XGN (Extended Green Node) portal which has made it a best practice and can be replicated across other states,” it added.

The other best practices, which featured in the report, pertain to integrated and comprehensive system for VAT in Karnataka; labour management solution in Maharashtra; setting up Maharashtra Industry, Trade and Investment Facilitation Cell; and single window clearance in Rajasthan and Punjab.

The ministry has sought public comments on the report on best practices, which could be replicated by other states to promote business environment, spur growth and generate employment.

“According to reports by the World Bank and the World Economic Forum, India ranks poorly in terms of business environment.

“Problems and restrictions plague the business throughout its lifecycle, making it difficult, expensive and cumbersome to start, grow or exit from a business. There is a clear need to make it easier to do business in  India.

Improving the business environment is likely to spur growth and generate employment for millions across the country,” the Commerce Ministry sponsored report said.