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LATEST NEWS UPDATES | Land consent norms ‘eased’

Land consent norms ‘eased’

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published Published on Sep 25, 2012   modified Modified on Sep 25, 2012
-The Telegraph

The rural development ministry has claimed that an amended version of the land acquisition bill has taken into account concerns of industry though several cabinet ministers had blocked it last month fearing it would stall industrialisation.

In a note last week to all members of a Group of Ministers (GoM) on the bill, the ministry said the revised draft had relaxed key provisions, including consent norms for acquisition of land for private industry.

The original bill, introduced in Parliament last year, had said the government could acquire land for public-private partnership (PPP) projects and private companies with the consent of 80 per cent of project-affected people, a category that includes landowners as well as those dependent on the land for their livelihood.

The revised bill says consent would be needed of only two-thirds of the landowners. “By relaxing the consent clause, the bill makes the acquisition process easier for PPP projects and private industry,” a source said.

A parliamentary standing committee had earlier suggested the government should not get involved in land acquisition for private industry. The ministry has ignored the suggestion.

The Union cabinet had last month held back clearance to an amended draft, following the opposition from five ministers. The bill was referred to the Group of Ministers. The GoM, headed by agriculture minister Sharad Pawar, will hold its first meeting on Thursday.

The original bill said the law would apply to on-going projects where compensation has not been paid or possession not taken. The revised bill says the provisions will apply to new acquisitions only.

The original bill provided for twice the market value of the land as compensation in urban areas and four times the market rate in rural areas, the market value being the average price of sale deeds in an area.

Keeping in mind the possibility of land prices being artificially jacked up in a project area, the revised bill says the acquisition price will not form the basis for calculating the compensation. It says the compensation will be between two to four times the market value in rural areas. The market value will be determined by a new formula.

Power has been given to the collector not to consider transactions he feels are not indicative of a plot’s true value.

The Telegraph, 25 September, 2012, http://www.telegraphindia.com/1120925/jsp/nation/story_16015983.jsp#.UGE3W64XVwc


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