The union cabinet has approved one of the most controversial bills to come up this year. On Monday it gave the green light to the National Land Acquisition and Rehabilitation & Resettlement bill. It plans to introduce the proposed legislation in Parliament on Wednesday. That’s just one day before the monsoon session ends.
According to the revamped bill, compensation in rural areas should be four times the original market value rather than six times. In urban areas it will be just two times. And while the original draft didn’t allow for acquisition of multi-crop land, the new version puts a cap of 5% on the purchase of such land.
With manufacturing in India slowing down in August the services industry has followed suit. The HSBC market Purchasing Managers’ Index for the month fell to its lowest since January of 2009. The index for August was just 53.8. In July it stood at 58.2. The services sector includes Indian IT giants like TCS and Infosys. They’ve been hit by a combination of the global slowdown and rising interest rates.
Indian markets went into decline on Monday after making gains for three consecutive sessions. Fresh worries about the US and European conditions were the catalyst of the latest fall. The Sensex dropped 108 points to 16,713. And the Niftry tumbled 23 to 5,017.