A group of ministers (GoM) on 16 October 2012 gave nod to much awaited land bill for Cabinet consideration after resolving disputes between ministries. The Bill will replace the 117-year-old Land Acquisition bill of 1894.
As per the final draft, approval of two-third of land owners and affected families will be required for acquiring land for PPP and private sector projects with defined public purposes. The Bill - now called the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill 2011 - in its earlier version had proposed that acquisition could proceed only if 80 per cent of the affected parties agreed to part with their land. Ongoing land acquisitions where award has not been made or possession hasn't been taken will not be impacted by the proposed law. Also, the provisions of the law won't be applicable for SEZs, which are governed by a separate Act. Further, it seeks to prohibit land acquisition in Panchayat Extension to Schedule Area (PESA) and forest areas.
If the Bill is approved by the Parliament and vetted earlier by the relevant House panel, in the Winter session - it will remove yet another hurdle for investors and encourage economic activity.