Land Acquisition, Rehabilitation and Resettlement Bill, 2011

Bowing to agrarian States like Punjab and Haryana, the Government has introduced in the Lok Sabha an amended version of the Land Acquisition, Rehabilitation and Resettlement Bill 2011, deleting from it the previously proposed provision to impose a blanket-ban on the acquisition of multi-cropped, irrigated land.

The new Bill, which, as and when it is passed, will replace the 117-year old Act of 1894 and will allow acquisition of multi-cropped irrigated land as a “last resort”.

The Bill makes even the permission ‘as a last resort’ conditional by providing that an equivalent area of culturable wasteland would have to be developed if multi-crop land is acquired. In districts with net sown less than 50 per cent of the geographical area, not more than 10 per cent of the net sown area will be allowed to be acquired.

The Bill states that the law will apply when the government acquires land for its own use or with the ultimate aim of transferring it for use of private companies for stated public purpose or for immediate and declared use by private companies for public purpose.

The consent of 80 per cent project affected families would have to be obtained prior to acquisition and urgency clause has been limited to exigencies of national defence, security and rehabilitation following calamities.

The Bill also provides that any land, not used within 10 years for the purpose for which it was acquired, will be transferred to the States' land bank and upon every such transfer, 20 per cent of its appreciated value will be shared with the original land owner.

The Bill, for the first time, ensures a comprehensive compensation package for land owners and livelihood losers. It proposes that market value calculated for the land will be multiplied by a factor of two in the rural areas.

Solatium will also be increased up to 100 per cent of the total compensation. Where land is acquired for urbanisation, 20 per cent of developed land will be offered to the affected owners.

For SCs and STs affected by acquisition, protections have been given. The Bill envisages additional benefits of 2.5 acres of land to each affected SC/ST family; one-time financial assistance of Rs 50,000; 25 per cent additional rehabilitation/resettlement benefits for families settled outside the district.