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Land leasing in India is legally governed by multiple laws enacted by states within their respective jurisdiction. As a result, there is no uniformity in the land leasing laws across the country. Telengana, Bihar, Karnataka, Madhya Pradesh and Uttar Pradesh ban land leasing with exceptions granted to landowners among widows, minors, disabled and defence personnel. Tenancy is banned in Kerala for long but the state has only recently permitted only self-help groups to lease land. States like Punjab, Haryana, Gujarat, Maharashtra and Assam do not ban leasing but the tenant acquires a right to purchase the leased land from the owner after a specified period of tenancy. Only Andhra Pradesh, Tamil Nadu, Rajasthan and West Bengal have liberal tenancylaws.
A well crafted formal land leasing law will allow big landholders to lease out some or all of their land and look to other sectors for employment thereby easing the pressure on agricultural sector. Simultaneously it will allow landless poor to lease in some land and earn a decent living . In India, close to 20% of land holdings are managed by tenant farmers. But in absence of formal land leasing agreements these tenant farmers are not able to access formal credit, insurance, disaster relief and other support services provided by the government as they cannot prove any ownership or other rights over the land they are cultivating. Also due to the presence of several clauses like 'adverse possession clause' or 'minimum area clause' the landowners are afraid of losing their land to tenants. As a result they keep on changing tenants and the tenants are left insecure and are wary of making long term investments in lands cultivated by them.
The model land leasing act framed by T Haque of Niti Aayog aims at removing all the discrepancies in the state laws and set up a formal uniform land leasing law for the country to promote tenancy in agriculture. The core features of the model law are-
Also, the proposed Act limits the use of agricultural land to agriculture and allied activities only. However, Arvind Panagariya, Vice Chairman, NITI Aayog in his official blog said that he wished to extend this kind of Act to non-agricultural uses (industrial purposes) as well. He said that state governments wishing to facilitate industrialisation could further benefit from liberal land leasing if they simultaneously liberalised the use of agricultural land for non-agricultural purposes. He called upon state governments to amend laws to permit leasing of agriculture land for industrialisation. This could further contribute to the diversification of rural economy.
By: Deepak Hooda ProfileResourcesReport error
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