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LATEST NEWS UPDATES | Public purpose covers companies by Basant Kumar Mohanty

Public purpose covers companies by Basant Kumar Mohanty

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published Published on Jul 30, 2011   modified Modified on Jul 30, 2011

The Centre today unveiled a draft land acquisition bill that seeks to replace a 117-year-old law, prohibits the acquisition of multi-crop irrigated land and includes in the definition of “public purpose” plots for companies.

The government posted the draft National Land Acquisition and Rehabilitation and Resettlement Bill, 2011, on four websites, seeking comments from the public and all stakeholders. (See chart)

The draft makes it clear that the government is not amending the old law but scrapping it altogether.

“So far, the basic law governing the land acquisition process has been the Land Acquisition Act, 1894. Although it has been amended from time to time, it is painfully evident that the basic law has become archaic,” rural development minister Ramesh wrote in a foreword to the draft bill.

Other than the leeway that allows governments to acquire up to 100 per cent land for private industry, the definition of public purpose could evoke questions from key allies such as Mamata Banerjee.

Among the four clauses that define “public purpose” is one that says “the provision of land for any other purpose useful to the general public, including land for companies, for which at least 80 per cent of the project-affected people have given their consent through a prior informed process”.

This suggests land for companies can also be covered under public purpose — an issue central to the aborted Tata project in Singur. Calcutta High Court had said the Singur land acquisition was for public purpose.

Under the same head, the draft features a sentence that mentions “a private company” can seek the intervention of the “appropriate government” to acquire a part of the land required for a public purpose project.

“Provided that where a private company after having purchased part of the land needed for a project, for public purpose, seeks the intervention of the appropriate government to acquire the balance of the land, it shall be bound by rehabilitation and resettlement provisions of this act…,” the draft made public today said.

This accommodates the concerns expressed by industry and goes against the stand of the current Bengal government which has ruled out acquisition of any land for private investors.

Ramesh will hold month-long consultations with chief ministers, political parties and NGOs before finalising the draft of the bill.

The draft bill allows state governments to acquire the entire land for a private industrial project, a part of it, or none at all, after written consent from at least 80 per cent of project-affected families (the owners of the land and those dependent on it).

The bar on acquisition of multi-crop irrigated land has been prompted by the need to take care of farmers’ interests and future challenges to food security.

One key feature of the draft bill is the provision to return acquired land to the original owners if it lies unused for five years. Another is the requirement for social impact assessment, which means the district administration must consult the gram sabhas before acquisition to find out the views of the people and their emotional attachment to their land.


The Telegraph, 30 July, 2011, http://www.telegraphindia.com/1110730/jsp/nation/story_14309455.jsp


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