House panel may keep govt`s land buy cap at 30 per cent

Ignoring strong demands from some state governments, especially the Left-ruled West Bengal, a parliamentary panel is likely to keep the government’s share of land acquisition for future industrial projects at 30 per cent.

It is also set to rule out any rehabilitation package for lands sold directly to private parties. Only people whose lands have been acquired by the state will be eligible for compensation under the new rehabilitation and resettlement policy.

The committee, after several meetings, has decided against enhancing the government’s powers to acquire land.

In the draft amendment to the Land Acquisition Act, it was proposed that the state could acquire only up to 30 per cent of the total land required for the project and that too if the private player had already bought the rest.

The West Bengal government and the CPI(M) wanted this cap to be raised to at least 50 per cent. Their logic: the landholding pattern in West Bengal is small and the brokers will take advantage if the state does not have more powers.

But most representatives of central ministries deposing before the committee felt the 30 per cent cap was adequate. Citing recent examples of troubles, most ministries felt that the states should not intervene much in land acquisition for industry.

According to the CPI(M), if the R&R policy is applicable on only the land acquired by the government, it will increase the cost of acquisition for 30 per cent lan, while the rest can be purchased at a lower rate.

The party wanted the R&R policy to be applicable for both voluntary and involuntary displacement, according to a Politburo member.

It also wants that courts, instead of government-appointed bodies, should decide on the disputes related to R&R packages.

The standing committee on Rural Development, headed by BJP's Kalyan Singh, is expected to submit its report in Parliament in its forthcoming monsoon session.