Cabinet to take up changes in land acquisition policy today

Cabinet to take up changes in land acquisition policy today
The Financial Express, February 26, 2009, Page 3

Sandip Das

After getting go ahead from GoM on Tuesday, the Cabinet would consider two significant policy changes on land acquisition for industrial use and rehabilitation of displaced people due to industrial project on Thursday.

Sources told FE that amendment to the Land Acquisition Act 1894 and a introduction of the National Rehabilitation and Resettlement Policy (NRRP), 2007, would be taken up by Cabinet, following which both the bills are likely to introduced in both houses of Parliament on Thursday.

With Thursday being the last day of Parliament session for the UPA government, it wants to rush through the amendment instead of waiting for the next government. Agriculture minister Raghuvansh Prasad Singh has been pushing for including the two important items in Parliament’s business schedule.

As per the changes proposed to the Land Acquisition Act, a state could only acquire a maximum 30% land required for an industrial project while the rest has to be purchased directly by the concerned company. If passed, the amendment is expected to see opposition from the states as the issue of land remained a state subject.

The NRRP, which comprehensively deals with rehabilitation aspect of land acquisition for industrial use, states that families displaced due to industrial project are to be given market rate for the land, including some compensation in terms of shares and debentures of the company.

“In case of a project involving land acquisition on behalf of a requiring body, and if the body is a company authorised to issue shares and debentures, the affected families who are entitled to get compensation for the land or other property required shall be given the option to take up 20% of the compensation amount due to them in the form of share and debentures,” NRRP states.

Sources also said the GoM has accepted the rural development ministry’s demand for 70:30 formula for land acquisition for industry, which was earlier opposed by Left parties, a parliamentary panel and few state governments.

The suggested policy change in policy assumes significant as NRRP categorically says that the purpose of setting up an industrial unit should be to minimise large scale displacement of people as far as possible.

NRRP and the associated legislative measures aim at striking a balance between the need for land for developmental activities and at the same time protecting the interests of the land owners, tenants, the landless, agricultural and non-agricultural labourers, artisans and others whose livelihood depends on the land involved.

“Acquisition of agricultural land for non-agricultural use in the project may be kept to the minimum and multi-crop land may be avoided to the extent possible for such purpose and acquisition of irrigated land,” NRRP has states.

Ear to ground

•As per the changes proposed to the Land Acquisition Act, a state could only acquire a maximum 30% land required for an industrial project while the rest has to be purchased directly by the company

• If passed, the amendment is expected to see opposition from the states as the issue of land remained a state subject

• The GoM has accepted the rural development ministry’s demand for 70:30 formula for land acquisition for industry, which was earlier opposed by Left parties, a parliamentary panel and few state governments