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Press Release: Dialogue on Land, Conflict and Investment Risks in India
September 3, 2015

 

 

UNCLEAR PROPERTY RIGHTS AND RECORDS PUT INVESTMENT IN INDIA’S MANUFACTURING AND INFRASTRUCTURE SECTORS, AND ITS FINANCIAL SECTOR AT RISK

 

With over 93% of natural resource development in emerging economies at risk for land conflict, the global land investment experience has key lessons for India

 

NEW DELHI (3 September, 2015)—India’s private and public sectors, which need land for their industry, infrastructure, and service sector operations, as well as its financial sector, are bearing the brunt of project delays and non-performing assets linked to land rights conflicts. 

 

The issue is not unique to India. Unresolved conflicts over land tenure have been shown to significantly increase financial risk for companies in the infrastructure, mining, agriculture and forestry sectors across the world, according to TMP Systems, an international consultancy that has carried out extensive work on quantifying the risk related to land rights in large-scale projects. 

 

TMP Systems’ analysis last year spanning almost 73,000 commercial natural resource developments in eight countries, found that over 93 percent of the developments were inhabited. It is currently analyzing 262 land tenure case studies in 30 countries, showing clear and consistent material impacts of unclear land rights on assets including dams, farms, mills, mines, orchards, and timberland. 

 

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