Land Acquisition Bill Approved by Cabinet
India Inc balks at Land Acquisition Bill
Agencies
Posted: Friday, Sep 23, 2011 at 0928 hrs IST
Mumbai: Unfinished car shells rusting in a deserted factory in India's West Bengal state lie testimony to flaws in a century-old land-acquisition law the government now wants to replace.
* Jobs, housing, cash to landowners made mandatory
* Costs, project delays to increase – Indian corporates react
* Bill to push up costs by 350 pct for big plots – analysts, cos
* Bill likely to be passed in December
Tata Motors was forced to abandon its Nano plant in 2008 after violent protests by villagers, who claimed they were forced off the land by the local government and paid inadequate compensation.
But companies say an overhaul of the old law envisaged to bring clarity to an often murky part of doing business in India goes too far in favour of rural landowners and will slow development, capacity expansion and economic growth.
The proposed new land bill means cost increases and project delays for developers, thanks to rules that will raise land values and compel them to provide new homes, jobs, monthly stipends and a cut of future profits to former landowners.
This just isn't going to work for buyers, said Rupen P. Patel, managing director of Patel Engineering , an infrastructure firm specialising in power and road projects.
It is going to make a lot of projects unfeasible both in the short and long term, and growth will be hurt.
Billion-dollar projects stalled or abandoned due to protests or legal battles with angry former landowners have exposed the dicey world of corporate land acquisition in Asia's third-largest economy, sparking calls for a legislative fix.
The proposed bill, which could become law in December, will ramp up the cost of land for developers and infrastructure firms by 20 percent for small plots and as much as 350 percent for parcels of more than 100 acres, companies and analysts say.
That could push up total project costs by around 40 percent, deterring investment in infrastructure needed to remove bottlenecks and sustain India's continued economic rise.
The National Land Acquisition and Rehabilitation and Resettlement Bill has been championed by Rahul Gandhi, the scion of the left-leaning ruling Congress party, and is seen as helping an embattled government keep its strong rural vote base ahead of a 2014 general election.
The bill was first proposed in 2007 and is set to replace legislation written in 1894 by the British.
Despite criticism from companies, including the country's largest real-estate developer DLF , it is likely to be passed by both of India's houses of parliament.
BIG PROJECTS, BIGGER RISKS
Builders of roads, power plants and other big projects are already burdened with rising costs and more expensive credit after 12 interest-rate hikes in 18 months.
In practical terms, there can be a rub-off effect leading to a general rise in land prices leading to problems in acquiring land for project purposes leading to delay in project awarding, said a spokesman for Reliance Infrastructure , one of India's largest infrastructure developers.
Infrastructure firms such as Hindustan Construction Co and Jaiprakash Associates , whose highway from New Delhi to the Taj Mahal city of Agra has been delayed over land-ownership hassles, are likely to be hit by the law.
This bill is going to have a large negative impact on the big-ticket infrastructure projects, said Gaurav Pathak, analyst at Standard Chartered in Mumbai.
The bill will be debated during the upcoming parliamentary session that begins mid-November.
Millions of people move from rural India to its rapidly growing cities every year, exposing a chronic lack of affordable housing. Fast economic growth puts a huge strain on creaking highways, rail networks and power plants.
But securing land for development has become increasingly thorny.
A $12 billion steel mill being developed by South Korea's POSCO in eastern India was supposed to produce 4 million tonnes of steel this year, but protests by farmers has meant only half the land needed for the project has been bought so far.
Companies, some of which have submitted their reservations on the bill to the government, want a more robust land-purchasing law to protect their investments, but say the government should stay out of business between private companies and willing sellers.
If a private-sector purchase requires no help from the government, it should not be subject to the provisions of the bill, Rajeev Talwar, executive director of DLF, told Reuters.
'POLITICAL-CORPORATE NEXUS'
Farmers, who make up the bulk of India's 1.2 billion population, worry that a political-corporate nexus works to cheat them of their land's true value.
Land acquisition must be a just process, an equitable process, must afford adequate compensation to land owners, to livelihood losers, Jairam Ramesh, who wrote the bill as minister for rural development, recently told a news channel.
There are severe infirmities in the manner in which land has been acquired. We are trying to correct a grave historical wrong.
Thousands of farmers protested this May after claiming they had been paid 800 rupees ($16) per sq. metre by authorities in Uttar Pradesh, India's largest state, for land that was resold to developers for 3,200 rupees per sq. metre.
Gandhi joined the protest, bringing it nationwide attention and thrusting him at the forefront of efforts by the ruling party to pass the bill.
The new legislation would see firms, which are currently not obliged to rehouse or employ landowners, avoid relief and rehabilitation fees for urban plots smaller than 50 acres and rural plots below 100 acres. The fees will apply to all sizes of government land acquisitions.
With state and central governments typically acquiring large swathes of land for distribution to private developers for projects such as highways, housing and power plants, end-user costs and execution delays are likely to soar.
Landowners who sell, on top of receiving up to twice the current value of their land, would be entitled to $42 a month for 20 years, new jobs and housing, and a share of 20 percent of any capital gains made in reselling the land within ten years.
If this is adopted the way it is right now, it will make things harder for developers and slow down the process further, that's for sure, said Anshuman Magazine, South Asia chairman and managing director of CB Richard Ellis .
We need a land acquisition act so there is clarity and a process is followed, but it must be balanced… it appears as it has been drawn up only from the farmers' point of view.
Executives cite the example of business-friendly land-purchasing laws that have transformed the western state of Gujarat into a manufacturing and industrial hub, attracting billions of dollars of investment to its modernising cities.
Japanese carmaker Suzuki Motor plans a $1.3 billion factory in Gujarat, Kyodo news agency reported last week.
Ford Motor Co and PSA Peugeot Citroen also plan factories in the state where Tata found a home for its Nano production line after fleeing West Bengal.
Government and business need to work together for the benefit of landowners, Kumari Selja, minister for housing and urban poverty alleviation, told a real-estate conference this week.
This bill will give the industry a human face. ($1 = 47.810 Indian rupees)
FACTBOX:-Key facts on India's proposed land acquisition bill
India's proposed new bill to replace a century-old land-acquisition law could mean cost increases and project delays for developers due to provisions for increased compensation for former landowners.
The bill, likely to be passed in December, was envisaged to bring clarity to an often murky part of doing business in Asia's third largest economy, but will slow development, capacity expansion and economic growth, companies say.
But rural farmers, a core vote base for the ruling Congress party that has tabled the bill, say they are being cut out of the spoils of India's economic rise by powerful land developers in cahoots with politicians.
The following are some key facts about the bill.
WHY IS IT NEEDED?
India's land laws date back to the British rule and are ill-suited to the large infrastructure and housing projects the country needs to remove bottlenecks and sustain continued growth.
Several projects, including multi-billion-dollar investments by firms such as ArcelorMittal , POSCO and Tata Motors , have been delayed or abandoned due to villagers' protest over land acquisitions.
Companies say they want a robust system that will protect their investments, while the government wants to placate millions of rural voters before a general election in 2014.
COST OF REFORMS
Companies and analysts estimate that the bill will raise land costs by up to 350 percent, pushing up project costs by up to 40 percent.
Purchasers will be forced to pay six times the current market value to acquire rural plots, and twice the current market value for urban plots.
In addition, all government acquisitions and private purchases of more than 100 acres in rural areas and more than 50 acres in urban areas will be required to pay relief and rehabilitation fees to former owners.
Former land owners' families will be entitled to a new house, relocation costs, employment for one family member, 2,000 rupees ($42) per month for 20 years and a 20 percent share of any capital gains made by selling the land within ten years.
CORPORATES CRITICISE
While welcoming the bill's premise to tighten rules and set clear compensation amounts, executives across India's real-estate and infrastructure industries have criticised the bill, saying it will make projects prohibitively expensive.
Developers say the government should not get involved in deals between private firms and landowners, and have warned that delays caused by the cumbersome compensation rules could harm investment, capacity expansion and economic growth.
HOW LIKELY IS IT TO PASS?
A previous version of the bill was passed in 2007 by the lower house of parliament, but lapsed when parliament was dissolved for the 2009 federal elections.
The new draft will be debated by a standing committee, before it goes back to both houses of parliament. Both houses must agree on its contents for the bill to become law.
With support from opposition parties, the bill is likely to pass in December when parliament reconvenes, but could potentially be held up if debate is disrupted by other political issues, as has happened to other bills in previous sessions. ($1 = 48.055 Indian rupees)
http://www.financialexpress.com/news/india-inc-balks-at-land-acquisition-bill/850621/0
Realty watchdog soon, says govt
Agencies
Posted: Thursday, Sep 22, 2011 at 1729 hrs IST
Mumbai: The Centre is working on a legislation to fill in the regulatory gaps in realty sector and the proposed law will lay emphasis on transparency and fair play in the sector whose image has taken a severe beating – in short, it was being hinted that the real estate sector in India will get a watchdog, or more pertinently a regulator.
It is also hopeful that the new Land Acquisition Bill would be passed in the winter session of Parliament.
"Land acquisition challenges need to be overcome for growth of the real estate sector. The new Land Acquisition Bill presented in Parliament would be passed after taking all the concerns on board. This should happen before the end of the winter session of Parliament," Union Minister of Housing, Urban Poverty Alleviation and Culture Kumari Selja said today.
The Bill would try to make land owners partners in urbanisation and adequately compensate all persons dependent on the land being acquired. This would give a humane face to land acquisition and would make development move inclusive, hassle-free and sustainable, she told a FICCI-organised International Real Estate summit here.
"The realty sector also has to win the trust of its customers, regulators and other stakeholders. There is an immense need to improve the regulatory environment, governance and transparency in the sector," the Minister said.
We in the Ministry of Housing and Urban Poverty Alleviation are working on a Central legislation to fill in the regulatory gaps. The regulation would lay emphasis on self -disclosure, transparency, fair play and dispute resolution."
The realty sector's image has suffered a huge dent due to recent housing loan scam, judgments by the Competition Commission of India and issues relating to land acquisition for real estate projects across the country, Selja said.
Selja further said approval procedures for realty projects need to be improved to cut down the time required in obtaining clearances.
"We have formed a task force in the Ministry, with the states and industry representatives as members to steer it. The task force is consulting industry bodies and states for suggestions to streamline the existing procedures. Ficci's study on the same subject would also be considered by the task force," the Minister stated.
She appealed to the real estate industry to come forward to build low-cost houses.
"As part of reforms in our schemes, a certain percentage of land has to be reserved for lower income groups in housing projects. We are working with the states to see that reservation does not affect the bottomline of the sector. I would request the developers to use this as an opportunity to showcase their commitment to the common man," she said.
http://www.financialexpress.com/news/realty-watchdog-soon-says-govt/850343/0
End of affordability
Vandana Ramnani vandana.ramnani@hindustantimes.com
Land costs will increase 80%, say developers unhappy with LARR 2011
The Land Acquisition, Rehabilitation and Resettlement Bill (LARR) 2011 cleared by the cabinet this week and tabled in parliament will increase land costs by 80%, sounding the death knell for affordable housing and increasing slum development, real estate developers have said.
The compensation for rural and urban land fixed at four and two times the market value along with reservation of 20% of developed land, annuity and other compensations will almost double the property prices.
Getting consent of 80% owners before acquisition (as stipulated in the bill) is going to be tedious and may delay the acquisition process. The provision that 20% of the developed land should be reserved for landowners as part of rehabilitation entitlement would increase the cost of developed land. The cost in all likelihood will be passed on to the buyers, points out R R Singh, director general, NAREDCO.
Land acquired by private companies should not be covered under the land acquisition bill as this would lead to a sharp rise in land cost and affordable housing would become impossible, the Confederation of Real Estate Developers Associations of India (CREDAI) has said.
The bill does not make any distinction between compulsory acquisition and open market transactions and treats as equal the compensation to be given in both cases.
“While we support compensation, including solatium and resettlement provisions in case of compulsory acquisition, in market transactions between a willing buyer and willing seller there is no emotional trauma for which a solatium needs to be given and neither should the buyer be responsible for providing rehabilitation and resettlement in such cases,“ says Sachin Sandhir, managing director and country head of RICS.
“The bill's current approach, not underpinned by sound valuation and compensation principles, will certainly lead to cost of land becoming many times higher than today, thereby worsening the problem of housing affordability in the country,“ Sandhir said.
The Confederation of Indian Industry has also expressed concern over the appreciation value set in the Land Acquisition Bill and said that the proposed value would make land cost economically unviable for industries.
http://epaper.hindustantimes.com/PUBLICATIONS/HT/HD/2011/09/10/ArticleHtmls/End-of-affordability-10092011221008.shtml?Mode=1
Cabinet approves draftLand Acquisition Bill
New Delhi, Sept. 5:
The Union Cabinet on Monday cleared the draft Land Acquisition Bill without any modifications.
The Bill is likely to be tabled in Parliament on September 7, after which it may go to the Standing Committee.
The Bill comes at a time when most States are grappling with agitations on the issue of land acquisition.
“The Cabinet has approved the draft Bill,” the Rural Development Minister, Mr Jairam Ramesh, told newspersons after the Cabinet meeting. But sources said some changes have been made from the original draft put on the PIB's Web site on July 27.
Once the Bill becomes an Act, the proposals will be implemented with retrospective effect in case the award has not been made in Land Acquisition Act, 1894 or possession has not been taken.
The draft was put in the public domain a month ago for inviting comments.
If the law comes into force, the Government will not acquire land for private companies for private purposes.
COMPENSATION
Also, once a public purpose is stated by a private company for buying land, it cannot be changed. And if the land is not used in five years for the stated purpose, it should be returned to the original owner. The Government will also steer clear of acquiring multi-cropped irrigated land. At present, most of such land is in Punjab, Haryana, West Bengal, Bihar and poll-bound Uttar Pradesh.
The National Land Acquisition and Rehabilitation & Resettlement Bill, 2011 includes a comprehensive compensation policy for land-owners and livelihood losers, including the landless, particularly the Scheduled Tribes.
For urban areas, it proposes an amount not less that twice the market rate. In rural areas, the amount should be not less than four times the original market value.
“The draft Bill seeks to balance the need for facilitating land acquisition for various public purposes including infrastructure development, industrialisation and urbanisation, while at the same time meaningfully addressing the concerns of farmers and those whose livelihoods are dependent on the land being acquired,” Mr Ramesh had said in his introduction to the draft.
He had said the Bill would enjoy primacy over specialised pieces of legislation such as for highways, Special Economic Zones, Defence and Railways.
CONSENT FACTOR
To safeguard livelihood, the Bill proposes that the consent of 80 per cent of the affected families be made mandatory if the Government acquires land for use by private firms for public purpose or public-private partnerships, other than that for national highways.
It, however, authorises the Government to invoke an “urgency clause” to acquire land for national defence and security purposes, R&R needs in the event of emergencies or natural calamities, and in “rarest of rare” cases.
http://www.thehindubusinessline.com/industry-and-economy/government-and-policy/article2427114.ece
Cabinet approves Land Acquisition & Rehabilitation Bill
Published on Mon, Sep 05, 2011 at 18:50 | Source : CNBC-TV18
Updated at Mon, Sep 05, 2011 at 23:03
The much-debated and awaited Land Aquisition & Rehabilitation Bill has finally been approved by the Cabinet. Breaking the news, Siddharth Zarabi of CNBC-TV18 reports that the team led by Jairam Ramesh has approved the final bill with certain changes and there will be no further group of ministers (GoM) meet on it. Sharad Pawar, Veerappa Moily and Mamata Banerjee, who earlier has reservations about the bill, too are said to have approved the bill. "The exact details of the bill are not known yet, however, the final bill is ready for presentation at the monsoon session of parliament," he says.
The bill is being hailed as a victory since it is the first time that land acquisition is being clubbed with rehabilitation and resettlement. Also, Minister Ramesh had put the bill up on open platform for discussion by the public until August 30. It is speculated that the final draft has indeed considered all the recommendations and is a comprehensive file.
The bill will be introduced in parliament next week, before the end of the monsoon session on September 7. Once it is introduced, it could be sent to the Standing Committee for consideration.
Industry body FICCI had suggested that the proposed Land Acquisition Act should apply to the private companies only if they buy 500 acre of land or more, instead of the 100 acre as suggested in the Draft Law. The industry feels the threshold of 100 acre is very low for projects, especially in rural areas and this may only encourage smaller and fragmented holdings particularly in the mining sector. Sources reveal that certain suggestions of FICCI has indeed been incorporated in the final bill.
Earlier during the day, the Rashtriya Lok Dal termed the proposed Land Acquisition Bill as "impractical and ineffective", saying it lacked enough provisions to safeguard farmers against any pressure from the government machinery.
Zarabi reports that Jairam Ramesh has been asked to be more accommodative in terms of the balancing industry and farmer grievance. I&B minister Ambika Soni is expected to soon reveal the clauses to the public.
http://www.moneycontrol.com/news/cnbc-tv18-comments/cabinet-approves-land-acquisitionrehabilitation-bill_582859.html
Sharad Pawar unhappy with land bill
Published: Monday, Sep 5, 2011, 8:00 IST
By Surendra Gangan | Place: Mumbai | Agency: DNA
|
Union agriculture minister Sharad Pawar is not entirely happy with the proposed amendments in the land acquisition act and believes that it could result in further delaying the projects. “The proposed amendment in the Act that suggests more compensation to the landholders has side-effects to it and would set wrong trends in acquisition. My apprehension is that the owners will get excessive powers of negotiation and this would result in stalling the projects due to the non-acquisition of the land,” he said. He also added that the politicians of the new generation do not share direct relations with the aam janata. “I still like to travel by road as it gives you fair idea of the living conditions of the people, farming pattern and also the conditions of the road. You get to know and talk to people directly. But today, the politicians have no such direct relations with the people,” he added. The agriculture minister also announced that the country is all set for the second green revolution that would take place in the eastern part of the country. “The country witnessed first revolution in the northern part of the country and especially in Punjab and Haryana, but the second green revolution would take place in eastern part of the country. Assam, Orissa, West Bengal, Jharkhand and also Bihar lead the revolution,” he said. “The water table level has dropped to 120 foot under ground in Punjab from 9 foot 30 years ago. This is the effect of the excessive production of wheat and rice in the state. On the other hand Bihar and the eastern part has been witnessing flooding of late. With sufficient rainfall, adequate labour and land, the second green revolution is possible in the eastern party in next few years. The second revolution will produce 50% of the farm products consumed in the country.” Pawar said that mechanisation of the farming in the state would help farmers in raising their productivity and his ministry was has planned in that respect. “If mechanisation is adopted by farmers, it would help them improving their productivity in lesser money and get rid of the shortage of the labour. If adopted, the mechanisation will help the sugarcane farmers in cutting sugarcane on 100 acres with the help of 2 labourers instead of 350 labourers being used today,” he said. The agriculture minister firmly believe that the countries depending upon agriculture have been crippling with lower GDP, while the developed countries like US, UK , Canada – with the farming population between 3 to 8 % have never depended on agriculture. |
http://www.dnaindia.com/india/report_sharad-pawar-unhappy-with-land-bill_1583318
Draft land Bill is a ‘retrograde’ step: CREDAI
September 5, 2011:
The Confederation of Real Estate Developers Association of India (Credai) has expressed concern on some of the provisions of the draft National Land Acquisition and Rehabilitation & Resettlement Bill, 2011.
Reacting to reports of the Cabinet approval accorded to the Bill earlier today, the real estate developers' organisation reiterated its concerns on the provisions relating to the valuation of land and bringing private acquisition of land under the ambit of this law.
Mr Lalit Kumar Jain, National President, Credai, said the proposed law is a ‘huge setback' for industrial development and urbanisation.
Private developers
Bringing private acquisition of land under the ambit of this law which covers rehabilitation and resettlement is ‘disastrous' and creates opportunity for more legal complication.
For instance, private developers who purchase land for development after negotiations with land owners to mutual satisfaction simply cannot afford the provisions of rehabilitation and annuity. This provision only creates permanent land encumbrance and enable unlimited claims that will make township development unviable.
Simply ruling out agriculture land from development is also unviable in terms of industrialisation and urbanisation. Both these happen only as an expansion of developed areas and in river basins. The Government should look at creating irrigation infrastructure to expand agriculture land. It should abandon its populist, please-all approach for more pragmatic policies, Mr Jain said.
Mr Prakash Challa, Managing Director, SSPDL Ltd and Chairman, Finance and Taxation Committee, Credai, said the proposed law in its present form will result in escalation of land costs. It also provides a window for the influential to manipulate land availability by ‘unhealthy cornering of land' by a few.
While Credai is for providing adequate compensation and protecting the livelihood of the land owners, the Bill does not adequately address the valuation of land. Simply providing for multiple times the market value as compensation will only contribute to driving up prices. While the Bill provides for land acquisition for public good, driving up land cost will have an adverse impact in the long run, he said.
Reacting to the Cabinet decision, the Chairman-cum-Managing Director of Raheja Developers, Mr Navin M. Raheja, apprehended that the formulae proposed in the draft Bill would increase the cost of projects.
Mr Raheja, who is also the Chairman of the Real Estate Committee of industry chamber, Assocham, felt that this could also lead to a lot of speculation by investors. Industry chamber FICCI did not seem to be happy either with the broad contours of the Bill. The main concern is implementation of the proposed Act from retrospective affect, it said. It is going to be a big issue as many existing projects will have to spend a big amount on rehabilitation and resettlement, the chamber added.
Mr Niranjan Hiranandani, Chairman, Hiranandani Group, said now the pendulum had swung to the other end.
“I think certain aspects will be considered by the Parliament,” he felt.
There is concern over the issue of government getting into acquisition mode even in private acquisition. Similarly, relief and rehabilitation measures called for beyond 100 acres acquisitions were difficult as it was not assessable in any project such as the number of farm labour who had worked.
(With inputs from Chennai, Delhi and Mumbai)
http://www.thehindubusinessline.com/industry-and-economy/article2427232.ece
National Land Acquisition and Rehabilitation and Resettlement Bill, 2011: Draft copy Issued for disc
Source: Hindu
New Delhi, 29 Jul 2011
The United Progressive Alliance government on Friday unveiled its second draft Bill addressing the burning issues of land acquisition as well as rehabilitation and resettlement (R&R). The National Land Acquisition and Rehabilitation and Resettlement Bill, 2011, as recommended by the National Advisory Council, will make it mandatory that gram sabhas are consulted and the R&R package is executed before the acquired land is transferred.
Union Minister of Rural Development Jairam Ramesh has proposed one combined bill in place of two Bills which were earlier formulated on these two matters but not taken up for discussion in the Lok Sabha.
Mr. Ramesh will fly to Kolkata on Saturday to explain the details of the new draft legislation to West Bengal Chief Minister Mamata Banerjee, who is opposed to the assignation of any role for the State governments in matters of land acquisition.
The drafting of a new legislation on these issues was taken up by a Group of Ministers in May 2007. It remains to be seen if this draft, which has been put up online inviting comments, will come into force ahead of the 2012 Assembly elections in the State, where land acquisition has become a major issue.
The Ministry has given the public time till August 31 to send their comments and it is anybody's guess if the Ministry will be able to finalise the Bill, get it vetted by the Ministry of Law, have it approved by the Union Cabinet and introduce it in Parliament before the scheduled closure of the monsoon session on September 8.
The government was spurred into redrafting the new Bill in the wake of the turmoil in Uttar Pradesh, where farmers opposed the acquisition of land by the State. Prime Minister Manmohan Singh had directed Mr. Ramesh's predecessor Vilasrao Deshmukh to finalise the Bills and introduce them at the monsoon session of Parliament.
Dropping Mr. Deshmukh's approach of drafting two Bills, Mr. Ramesh stressed the importance of combining the two issues so as to prevent the neglect of R&R.
The UPA government risks missing its own deadline due to internal differences among the allies. Dr. Singh had stressed that Ms. Banerjee be taken on board in the matter.
In view of Ms. Banerjee's opposition to the NAC's recommendations, the Bill leaves it to States to choose to intervene in the process of land acquisition, and the extent of their role.
Under the proposed law, the R&R package would necessarily have to be executed for land acquisitions in excess of 100 acres by private companies. The law also prohibits private companies from purchasing any multi-cropped irrigated land for public purposes.
While the State government would not have any role in acquisition of land, it would come into the picture if the private companies petitioned for such an intervention. The government would do so only if the acquisition would benefit the general public.
To safeguard against indiscriminate acquisition, the Bill requires States to set up a committee under the Chief Secretary to approve that the acquisition is of “public purpose” and the social impact assessment for the land in question. If the acquired land was not put to use for within five years of the acquisition, it would be returned to the original owner.
For the first time, the government has acknowledged the role of the gram sabha in the process of land acquisition, stressing that they would have to be “consulted”. This has been done to comply with other laws, such as the Panchayat (Extension to the Scheduled Areas) Act (PESA), 1996; the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006; and Land Transfer Regulations in Schedule V (Tribal) Areas.
The Ministry of Panchayati Raj had opposed the earlier draft, stressing that the approval of the gram sabha was necessary for land acquisition under PESA.
The draft Bill will enjoy primacy over 18 other laws pertaining to land acquisition. Its provision will be in addition to and not in derogation of the existing safeguards currently provided for in these laws.
Both the land owners and livelihood losers will have to be paid compensation. In rural areas, the compensation will amount to six times the market value of the land while in urban areas it would be at least twice the market value. Apart from this, the landowners will be entitled to a subsistence allowance of Rs.3,000 per month for 12 years and Rs.2,000 as annuity for 20 years, with an appropriate index for inflation.
In the cases of land acquired for urbanisation, 20 per cent of the developed land would be reserved and offered to the land owners in proportion to the acquired land. In addition, every affected family would be entitled to one job, else Rs.2 lakh.
Those who lost their house in the land acquisition process would be provided a constructed house with, in rural areas, plinth area of 150 sq. m, and 50 sq. m in urban areas, as well as a one-time resettlement allowance of Rs.50,000.
If the land acquired is for an irrigation project, one acre of land would be provided to each affected family in the command area.
Livelihood losers would get a subsistence allowance of Rs.3,000 per month per family for 12 months and Rs.2,000 per month for 20 years as annuity, factoring in inflation. Scheduled Caste and Scheduled Tribes would get a special package wherein each family was entitled to one acre of land in every project. Those settled outside the district would be entitled to an additional 25 per cent of R&R benefits. The draft envisages that ST families be paid one-third of the compensation amount at the very outset.
They will also have preference in relocation and resettlement in an area in the same compact block and free land for community and social gatherings.
If 100 or more ST families are displaced, a Tribal Displacement Plan would be put in place. It would include settling land rights and restoring titles on alienated land and development of alternate fuel, fodder and non-timber forest produce.
STs and SCs would also get, in the resettlement area, the reservation and other benefits they were entitled to in the displaced area.
The resettlement area should provide at least 25 infrastructural amenities including schools and playgrounds, health centres, roads and electric connections, assured sources of safe drinking water for each family, panchayat ghars, fair-price shops and seed-cum-fertiliser storage facilities, places of worship and burial and cremation grounds.
http://www.bankingonly.com/detail-news.php?news_id=678
Refer below link for the draft land acquisition Bill