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GoM proposes tougher land acquisition norms-Elizabeth Roche
-Live Mint

Panel recommends consent of 80% of land owners; key ministers say it would lead to unreasonable delays 

Land acquisition for public-private partnership projects (PPP) will become tougher if the government accepts the recommendation of the group of ministers (GoM) and includes it in the new land Bill that it proposes to move in the upcoming winter session of Parliament.

The ministerial body has recommended that the consent of 80% of farmers or land owners is needed to acquire land.

But in what could be a relief to many state governments embroiled in controversies over the acquisition of the land, the GoM headed by agriculture minister Sharad Pawar has decided to make the application of the Bill “prospectively”.
 
However, the definition of “public purpose” will determine the nature of land acquisition.

“The land acquired (by government) for railways, defence, atomic energy projects and affordable housing will be treated as for public purpose,” Pawar, who had a brief meeting with rural development minister Jairam Ramesh, told reporters on Monday.

“For land acquired for government purpose, there is no consent required though rehabilitation will be compulsory,” Pawar said.

Rehabilitation and resettlement issues have been given priority in the recommendations of the ministers’ panel, Pawar added.

The proposed law, renamed the Right to Fair Compensation, Resettlement, Rehabilitation and Transparency in Land Acquisition Bill, 2011, which seeks to replace the Act of 1894, was referred to the GoM in August.

This followed differences within the Cabinet with key ministers expressing concerns that the law would lead to unreasonable delays in acquiring land.

One of the major points of dispute was whether the purchase of the land from farmers should have the consent of 67% of owners. A previous draft of the Bill had required the permission of 80% of farmers before the government could acquire land for public-private partnership projects.

The GoM constituted by Prime Minister Manmohan Singh in August had three different views with one section saying that land can be acquired if 67% of owners agree, while others wanted consent of 80% and 90%.

Pawar said he would circulate the minutes of the three meetings of the ministers’ panel by Tuesday, seeking a response within a week. “It is possible for the government to introduce the Bill in the upcoming session,” Pawar said.

Ramesh has been keen on the passage of the Bill in the winter session beginning 22 November and ending on 20 December.

“It can go to the Union Cabinet (for the final approval before bringing it to Parliament) by 15 November,” Ramesh added.

Pawar also clarified that if the land is acquired by individuals or by private firms for their business, the government would not enter the picture. “We have left rehabilitation plans in this category to the state government,” he said.
 
Once passed by Parliament, the Act will be an enabling legislation on which state governments can base their law. The compensation amount for land losers has been set at 2x for urban areas and 4x for rural areas. But state governments will be given flexibility to decide the amount.
 
The Confederation of Indian Industry lobby group expressed its concern with the proposed move. “We had recommended 60% consent from the land owners and we were willing to accept consent from two-third land owners. But anything beyond that would be too difficult and make the whole process cumbersome and time taking,” director general Chandrajit Banerjee said.

Moulishree Srivastava contributed to this story.