The Ordinance Route To Land Acquisition Act: Modi Government On The Move
The Ordinance Route To Land Acquisition Act: Modi Government On The Move
While the ordinance to the Land Acquisition Act has received a green signal, the Opposition is seeing red. While CPM has written to the government, Congress has spoken out against what it terms as “Ordinance Raj.” In direct contrast to this, the CII welcomed the “reforms” along with many media reports.
Waiving the Consent Clause
The Union Cabinet on Monday, 26th December 2014 has approved the ordinance which amends the land acquisition act and eases restrictions such as a “consent clause” seen as a major challenge for power, housing, highways, infrastructure and defence projects thereby bolstering the growth potential of the Indian economy.
The ordinance has sought to waive the consent clause which requires the consent of the owners of 70-80% of the land owners if acquisitions are required for defence and defence production, rural infrastructure such as electrification, housing for poor, affordable housing, infrastructure projects and industrial corridors as per projects under the PPP mode where ownership remains with the government. Land for multi-cropping can also be acquired for this purpose.
Exemption from Social Impact Assessment
These acquisitions will also be exempted from social impact assessment and application of the Food Security Act. Media reports indicate these were the 2 requirements for the Land Acquisition Act which has been identified as the reason for posing an obstacle to development. Around 80% of the country’s land is allocated for such projects, according to officials.
This ordinance attracted criticism from the opposition, but the government has clearly charged ahead to overcome the numbers shortage in the RS via a joint session in the Parliament.
Not Anti Farmer
The legislation has been intended to ensure that the compensation to the farmers remains intact. In fact, following the meeting of the Union Cabinet, PM Narendra Modi said, "Important aspect of amendment is to make development and security related works faster without compromising benefits/compensation to farmers.”
The Land Acquisition Act has made it compulsory to seek consent of 70% of the gram sabhas for the PPP Projects and 80% for private entities. This clause was always a major road block for acquisition of land for projects which was the source of persistent complaints for industries as well as states.
Pre-acquisition limitations and obstacles have now been waived and the government has indicated that compensation, resettlement and rehabilitation packages will not change under any circumstances. "Such projects are vital to national security and defence of India including preparation for defence and defence production," finance minister Arun Jaitley was quoted as saying. "If the land acquisition is for the five purposes, then the consent clause will be exempted," he also added
Cabinet has also approved to bring under the ordinance 13 most commonly used Acts for acquisition of land for central government projects such as metro rail, national highways, atomic energy projects and electricity. Both farmers as well as affected families will benefit from the legislation, say media reports.
CII Applauds Ordinance
"CII whole-heartedly welcomes the fact that the government has incorporated our suggestion to exempt projects in certain important sectors like defence, rural electrification, rural housing and industrial corridors from the mandatory 80% consent from affected families," the Confederation of Indian Industries said in a statement "Further, exemption of these projects from social impact assessment is also a welcome and crucial initiative," the industry body also noted.
About the Ordinance
The Union Cabinet approved the promulgation of the ordinance that amends the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement/RFCTLARR Act, 2013.
The amendments were approved in a cabinet meeting chaired by the PM. They decision for the amendment came as many State Revenue Ministers and key implementing Ministries faced difficulties in the implementation of the act.
2 in 1 Ordinance
The proposed amendment seeks to promote farmer welfare while meeting the development needs of the industry and country. The key amendments to the Act were as follows. Specific provisions of the Act were relaxed and section 10 A was then added to the legislation.
The CC or consent clause and SIA or Social Impact Assessment was removed for land acquisition for 5 purposes namely national security, defence, rural infrastructure including electrification, industrial corridors, building social infrastructure including PPP where land ownership continues to be vested with GoI.
Section 105 was also amended to bring 13 of the central legislations to allow people from whom the land was to be acquired to receive higher compensation and rehabilitation as well as resettlement benefits.
Conclusion
Any land acquisition legislation has complex implications for India where 70% of the population is employed in agriculture. While development can and will bring positive change, law should be implemented so that forcible acquisitions are not a reality and compensation is more than fair. While political leaders do differ in their view of the ordinance, there is a consensus among the industry regarding this as a positive development. Whether land acquisition remains fair will have to be mandated by the law makers. After all, any law is only as good as its effective implementation.
