Centre may keep off land for pvt projects

Rural ministry proposes changes in Land Acquisition Act to Cabinet; move to redefine 'public purpose'.

In a move that will prevent the government from acquiring land for any private industrial project or special economic zone (SEZ), the rural development ministry has sent a proposal for amendments to the Land Acquisition Act, 1894, to the Cabinet.

The ministry has decided that before any Bill on rehabilitation is put before the Cabinet, the Act must be amended to prevent the government from acting as a land acquisition agent for any private business.

Sources said the 1894 Act, which enabled the then British government to acquire any land by citing "public purpose or interest," would be tightened by clearly defining the phrase "public purpose."

"This is an imperialist Act which presumes that all land belongs to the state," said an official. The phrase will now mean land acquired for strategic or defence purposes, and for government projects like roads, bridges and railway lines.

"The private entrepreneur should acquire substantial part of the land by himself to show willingness to set up the project. The government should help him just to establish contiguity," said a source.

This means that if the proposed changes come into effect, a private developer will have to acquire more than two-third of the land needed and the government will step in only if contiguity factors constrain him from acquiring more.

"This will establish two things. Extra land will not be acquired and the charge that the acquisition is for real estate speculation will be taken care of. Secondly, farmers will get market price for their land," added the official.

"The Land Acquisition Act, 1894, is in the concurrent list. Hence the amendments will be binding on state governments as well," said the official.

The proposed amendments are historic in that they will finally wrest the power of unilaterally acquiring land from the state. The proposed amendments also reflect the government's embarrassment over agitations against private industrial projects and government's acquisition of land for private interests.