Land Bill deferred on rural dvlpt min's objections

CNBC-TV18's Anshu Sharma, Rituparna Bhuyan and Elaan Dutta, report, quoting sources that the Cabinet on Thursday deferred a decision on the Land Acquisition Rehablitation and Resettlement Bill 2011, after ministers sought more time to vet the contents of the Bill that was included in meeting’s agenda at the last minute.

Rituparna Bhuyan, Reporter ,CNBC-TV18

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The Cabinet on Thursday deferred a decision on the Land Acquisition Rehablitation and Resettlement Bill 2011, after ministers sought more time to vet the contents of the Bill that was included in meeting's agenda at the last minute. The proposed law will replace an existing 117-year old Act. The Cabinet note proposes a middle path by accepting the suggestions of the Parliamentary panel.

However, the Jairam Ramesh-headed rural development ministry has rejected the panel's key recommendation of a blanket ban on government acquiring land for the private sector and PPP projects, report CNBC-TV18’s Anshu Sharma, Rituparna Bhuyan and Elaan Dutta, quoting sources.

According to sources, the revised land Bill provides for acquisition of land for private companies for the development of ports, power stations, highways and irrigation projects. But the state will intervene only if the private company has consent of 80% of the land owners.

Rural development minister Jairam Ramesh made further concessions which partly accepted suggestions of the commerce ministry. Accordingly, national manufacturing and investment zones and the Delhi Mumbai Industrial Corridor may get some relaxation in land acquisition.

In addition, the rehabilitation, resettlement and payment for private land purchases will be through a one-time window, while multi-cropped land can be acquired for infrastructure such as railways, highways, power lines and irrigation canals.

Compensation for land acquired by the government has been proposed at double that of market value in urban areas and two-to-four times in rural areas. This will act as a floor price and the State Land Prcing Authority will finalise the cost compensation.

In a bid to take state-governements on board, the bill gives state the power to finalise the threshold limit for land acquisition after which rehabilitation and resettlement provisions will kick in.

States will also get to affix the amount of double-cropped land that can be acquired for a project. Last but not the least, land acquisition process initiated under the previous bill will continue as per the old Act.

Jairam Ramesh told CNBC-TV18 that the Bill would now be considered by the Cabinet at its meeting next week. Whether that will give enough time for his ministry to introduce the new land acquisition legislation in the current session of Parliament that ends on September 7 is still not clear.

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