New Delhi, May 18 - Terming it a "regressive" recommendation, a Parliamentary panel's suggestion that government should not acquire land for private businesses, Commerce and Industry Minister Anand Sharma today said this will hurt industrial growth and investment and he will oppose it when it comes up before the Cabinet.

"...you cannot take a view which is regressive, which prevents the growth of manufacturing. Virtually it would dampen the investors sentiment," Sharma told reporters here.

A Parliamentary Standing Committee in a report presented yesterday set tough conditions for land acquisition and said the government should not acquire land for private businesses and underlined the need for a clearer definition of "public purpose" in this regard.

It has also said that all cases of land acquisition must entail obligations for adequate compensation besides rehabilitation and resettlement of all land losers and other affected persons.

Sharma said the suggestions are not "acceptable" as it would "stop" manufacturing in the country. "We have to encourage investments especially in manufacturing sector, then only jobs will be created".

"I have taken on board the concerns of the industry. We will be placing this very firmly before the cabinet because we cannot take any step which in fact goes against the original spirit and de-industrialise the country or brings down industrial growth and investment," he said.

The minister said that states have an important role in zoning of the land and they are acquiring land to set up national investment and manufacturing zones (NIMZs), which aims at creating 100 million jobs in the next decade and increase share of manufacturing from 16 per cent at present to 25 per cent by 2022.

The Parliamentary panel headed by BJP MP Sumitra Mahajan has recommended the government should not acquire any land for profit purpose.

"We are opposed to the exclusion of manufacturing and industrial activity and PPP from the public purpose as defined," Sharma said adding "we will definitely be in favour of legislation which promotes growth, which keeps the principle of equity in mind when it comes to rehabilitation and compensation.

But that should not be taken to an "extreme" where the growth and industrialisation is brought to a halt or is sharply slowed down, the minister said.

He said the matter was already discussed with Rural Development Minister Jairam Ramesh and an appropriate and correct view would be taken on the issue by the government.

"I have fully taken on board the concerns that have been conveyed to me by the apex chambers of industry and leading captains of industry. We fully understand their concerns and therefore this part of recommendation is unacceptable to my ministry," the minister added.

The success of national manufacturing policy was also dependent on the land acquisition issues, as it aims at setting up of seven NIMZs.

"Why our well considered inputs were not taken on board. Finally cabinet will take a view. We have already thought it through. I am very clear in my mind what we will be doing...we cannot have standalone industrial townships", he said. PTI