Cabinet approves land acquisition ordinance

December 29, 2014 17:32

The Union Cabinet on Monday approved the land acquisition Ordinance.

The land ordinance, it is learnt, will dilute the consent clause for PPP projects -- either abolish it or bring the requirement down to 50 per cent of land owners. For projects carried out by the government for public purposes --- where the land is to remain in the hands of the government -- no consent would be required.

Under the new law, compensation is likely to be calculated from the date of preliminary notification of the acquisition, unlike the current Act, which provides for compensation from the date of social-impact assessment study.

The amendments, though, are not likely to change the compensation amount. The Act currently provides for compensation of up to four times the market value in rural areas and twice the value in urban parts.

The government has used an ordinance three times in its first six months in office due to a lack of majority in the upper house of Parliament or Rajya Sabha.

The order on land acquisition makes it faster and easier -- but not cheaper -- for the government to take over property for defence and rural infrastructure including the construction of hospitals and schools and colleges; rehabilitation and compensation terms have not been diluted.

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