The Hindu : Front Page : Land for land for farmers

Online edition of India's National Newspaper
Friday, Oct 12, 2007
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Land for land for farmers

Aarti Dhar

New policy will be applicable to SEZs also

NEW DELHI: The Union Cabinet on Thursday approved a National Policy on Rehabilitation and Resettlement, 2007, and amendments to the Land Acquisition Act, 1894, to “strike a balance between the need for land for development activities, and protecting the interests of farmers, landowners, tenants, the landless and those dependent on it.”

The present policy, which replaces that of 2003, will cover all involuntary displacement. It will be applicable to the Special Economic Zones (SEZs) also.

The new policy compensates “land for land” wherever possible, gives preference in job for one person in a nuclear family, including skill development and rehabilitation grant in lieu of land and job. The affected families have the option of buying shares in companies implementing the project; housing benefits will be given to all affected families, including the landless, and all monetary benefits will be linked to the Consumer Price Index and revised suitably at periodic intervals.

The amendments to the Land Acquisition Act redefine the public purpose to include infrastructure, communication as public facilities and also cases of ‘persons’ (company, association or body of individuals, incorporated or not) where the land required is for purpose “useful for public.”

As per the proposed amendments, the company will have to ‘buy’ at least 70 per cent of the land, while the remaining will be acquired by the government and any land remaining unutilised for five years will be reverted back to the government.

The rate of compensation will not be less than the floor price fixed by the State government, or an average of higher prices paid in 50 per cent of the land sale cases in the last three years, whichever is higher. Conversion of land acquired to intended category of use will have to be taken into account in fixing the market value and it would be necessary to pay compensation before acquiring the land, according to authoritative sources in the Ministry of Rural Development.

Special clause

A special clause has been included to deal with land acquisition in an emergency in which case the solatium will be 75 per cent of the market value, against 60 per cent in routine cases.

There will be a proper grievances redressal mechanism in place and the jurisdiction of civil courts in dispute settlement has been barred. A Land Acquisition Compensation Disputes Settlement Authority will be set up in each State, the decisions of which could be challenged only in High Courts and above.

While the National Policy on Rehabilitation and Resettlement will be notified at the earliest, legislation to give it a legal backing and amendments to the Land Acquisition Act, 2007 will be introduced in the winter session of Parliament.

It is for the first time that tenants and dependents on land have been made eligible for compensation, though the quantum of compensation will be decided subsequently.

A provision has been made for providing life-time monthly pension to persons, such as the disabled, destitute, orphans, widows, unmarried girls, abandoned women, or persons above 50 years who cannot be provided with an immediate alternative livelihood.

The Social Impact Assessment has been introduced for displacement of 400 or more families in plain/tribal, hilly or Scheduled Areas. A tribal development plan for displacement of over 200 Scheduled Tribes families will have to be made and consultation with gram sabhas is compulsory.

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