Land is the most critical component for project implementation and it defines the project itself. Governments may find it difficult to get project partners and lenders for their projects where it has not completed acquisition of a substantial proportion of the land required.
The significance of acquisition of land (for development of project under PPP framework) by the public entity prior to commencement of the bidding process has been supported by the Government of India. The Model Concession Agreement for development of National Highways under PPP framework, issued by the Government of India includes transfer of right of way to the private partner as a condition precedent of the concession agreement. It states transfer of not less than 90 percent of the total right of way required for the project from the public entity to the private partner.
One of the key factors that determine approval of Public Private Partnership Approval Committee (PPPAC) for development of PPP projects includes the extent of land availability (usually must not be less than 60% of the total land requirement) with the public entity for purposes of project development.
Acquisition of land affects people's lives. A few of the reasons why it attracts resistance among different quarters are
• Social impact on people
• Economic impact - loss of livelihood
• Damage to the environment