The Hindu Business Line : SEZ units may have to allot shares for land

Compensation
The Ministry of Rural Development is pressing for Resettlement & Rehabilitation (R&R) Policy, R&R Bill and Land Acquisition Amendment Bill simultaneously for the consideration of the Union Cabinet very soon.

New Delhi May 10 Companies intending to set up units in special economic zones (SEZs) may have to part with some of their equity to those whose land has been acquired for setting up the industries.

The Government is working on a proposal under which people giving up their land in the SEZs could get up to 20 per cent of the rehabilitation grant in the form of shares of companies for which land has been acquired. Besides, there would be preference for those affected in handing out the contracts from the units, in shops and in wage employment.

Against the backdrop of the controversy over land acquisition for SEZs, the Ministry of Rural Development is pressing for three crucial proposals simultaneously for the consideration of the Union Cabinet very soon.

Highly placed sources in the Government told Business Line that these proposals pertain to Resettlement & Rehabilitation (R&R) Policy, R&R Bill and Land Acquisition Amendment Bill.

The Ministry of Rural Development made a presentation on these three proposals to the Prime Minister, Dr Manmohan Singh, here on April 27.

The sources said that the R&R draft policy was in public domain since September 2006 and comments were obtained from Ministries and States and a final draft policy, with all the inputs from stakeholders after wide consultations, was now ready. Alongside, final touches were being given to the R&R Bill and Land Acquisition (LA) Amendment Bill, 2007, by the Union Law Ministry.

Top R&R features

Highlighting the salient features of the R&R Policy, 2007, the sources said that applicability is to be enlarged to include all cases of involuntary displacement — not merely those hit by projects entailing displacement but also those losing houses, livelihood and adversely affected otherwise. Wherever possible, land for land is to be given, besides job training to affected persons where required.

Besides the setting up of Monitoring & Grievance Redressal R&R Committee for each project, there would be National Rehabilitation Commission in place for exercising external oversight. There would also be a National Monitoring Committee headed by Secretary, Rural Development.

Amendment Bill

Referring to the proposed LA Amendment Bill, the sources said that public purpose for land acquisition would be redefined to include strategic purposes relating to naval, military and air force and any other work vital to the State. This would also cover public infrastructure such as electricity, communication, mining, water supply and public facilities.

A significant feature of the LA Amendment Bill is that the original LA Act, 1894, which saw major amendments in 1962, 1967 and 1984, will have Part VII dealing with "acquisition for companies" omitted, the sources said. It is also proposed to have public purpose include case of "persons" (meaning any company or association or body of individuals, whether incorporated or not) where land required is for purposes "useful for the general public."

The sources said that it is also proposed that land acquired for a public purpose cannot be transferred for any other purpose, except for a public purpose and after prior approval of appropriate government authority. Land remaining unutilised for five years is to revert to appropriate government authority with 80 per cent of difference in money received over the acquisition cost to be shared among landowners in proportion to value of land acquired in case of transfer.

The proposed amendment also fixes time-bound exercise for updating of land records and standardisation of land and property values. While there would be full payment of compensation before taking possession, it would also seek to make the entire exercise of land acquisition time-bound at every stage. There would be Land Acquisition Compensation Dispute Settlement Authority in place of courts in each State and jurisdiction of civil courts in such matters would be barred, the sources added.

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