GoM to examine rehab policy

A Group of Ministers (GoM) will be set up to examine the new relief and rehabilitation policy being prepared by the rural development ministry. This decision was taken at a meeting presided over by Prime Minister Manmohan Singh, and attended by his Cabinet colleagues, recently.

"The matter will now be referred to a GoM, which will give its recommendations. Once the recommendations are given, the matter will go to the Cabinet for approval," said Commerce Minister Kamal Nath on the sidelines of the APEDA export awards here.

"At the moment, new suggestions are being examined and considered. Everything is in a formative stage," Nath added Nath.

As a consequence of this decision, the new rehabilitation policy along with the amendments in the Land Acquisition Act of 1894 is unlikely to be tabled in the current session of Parliament.

According to sources in the Prime Minister's Office, opinion in the government appears to be divided over several fundamental issues related to both the rehabilitation policy and the Act, as well as the proposed amendments to the Land Acquisition Act.

"The PM is not very sure that the government should be entirely removed from land acquisition, throwing the farmers to the wolves, so to speak. Since in our country, share croppers and tenant farmers abound, what will happen to their rights," said a senior PMO official. "The matter is being considered closely and although the issue is still alive it is unlikely that the three things "" the amendment to the Land Acquisition Act, the rehabilitation policy and its enabling Act "" will be considered by the Cabinet anytime soon," said the source.

Apart from this concern, the PMO is also seized of the fact that the new Rehabilitation Act will very strictly define rehabilitation benefits. "These benefits will be applicable to the government and the private sector alike. Where the land is being used for creating a manufacturing unit, the benefits related to employment make sense, but what of projects like irrigation and roads," said the official.

Amendments to the Land Acquisition Act, reducing the government's role in acquisition for private developers, have been stuck at the stage of deciding the quantum of the role.

The rural development ministry's recommendation is to reduce it to 10 per cent, that too in cases where there are contiguity problems. "The PM is in favour of increasing the limit to 30 per cent, but he is still pondering the issues related to this," sources said.