Monday 29 December 2014

Government Approves Ordinance For Amendments In The Existing Land Acquisition Act

The Union Cabinet today recommended an ordinance that makes significant changes to the Land Acquisition Act including the removal of consent clause for acquiring land for five areas including PPP projects, defense, rural infrastructure, affordable housing, and industrial corridors.  

The Cabinet chaired by the PM himself, made the decision to amend the Act to bring it under its purview 13 central legislations to provide the person whose land is being acquired with higher compensation and rehabilitation.


FM Arun Jaitely said the government has decided to relax a few provisions of the act and add a section 10A to the legislation. He said that the consent clause and Social Impact Assessment will not be applicable to the acquisition process if the land is being acquired for one of the five afore mentioned purposes.     

However, it is worth noting that the compensation and rehabilitation and resettlement packages will be given as per the new Land Acquisition Act for acquiring land for these purposes. One of the significant changes that are supposed to be included in the new Act is now a multi-crop irrigated land can also be acquired for these purposes. 

"Such projects are vital to national security and defense of India including preparation for defense and defense production," Jaitley said.

When asked by the media about the consent clause, the FM said, "if the land acquisition is for the five purposes, then the consent clause will be exempted." The existing act asks for the consent of 70 percent of the land owners whose land is being acquired for the PPP projects.  

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