Govt sticks to 70-30 formula for land acquisition

Setting aside recommendations of the National Advisory Council (NAC), the government has stuck to the 70-30 formula on land acquisition that mandates a private company to buy 70% land for its projects.

Another proposal in the draft Land Acquisition (Amendment) Bill prepared by the government also ignores the Sonia Gandhi-led NAC's suggestion to pay compensation six times that of the registered land deed.

The government can acquire the remaining 30 per cent land required for the project.

The bill recommends that 60% of the land value be given as solatium to the owner whose land is being acquired for development projects.

However, the government draft states that the land value be assessed on the basis of the sixth notice issued by the competent authority for land acquisition as against the prevalent practice of deciding the value on the basis of the fourth notice.

"We have proposed that land value be calculated on the basis of the rate prevalent at the time the sixth notice for land acquisition is issued," an official said.

The fourth notice would only make known the government's intent to acquire land in a given area. Officials expect the value of the land to escalate in the period between the fourth and the sixth notice thus helping farmers get better due for their land.

Another proposal of the government makes it mandatory for an investor to give the land owners a share in the developed property. The bill leaves it to the state government to decide on the share to be given to the land owners.

The NAC had favoured 100% land acquisition by the government to ensure that farmers are not exploited by middle-men.

The draft legislation, which is now being vetted by the law ministry, also recommends annuity of a minimum of Rs1000 per acre per month for the next 33 years.

The draft bill has accepted an NAC suggestion that if the land remains unused for five years from the time of acquisition, it will be returned to the original owners.

The bill also proposes that barren land be given the top priority for acquisition for development projects while fertile lands should be the last priority.

It also links the compensation to be paid for land acquisition to the Consumer Price Index, thereby doing away with the necessity for amendments to law for revision base prices for compensation.

A proposal in the Rehabilitation and Resettlement Bill also states that the price for rehabilitation be included in the project cost.