NAC wants smaller role for firms in land acquisition

The National Advisory Council on Wednesday suggested that no private sector company should be allowed to buy land directly if more than 400 families are going to be displaced by its project.

It also favoured a single legislation for both land acquisition and rehabilitation of the displaced.

A Bill drafted in 2007 envisaged 30 per cent land for industrial projects -- if contiguity was a stumbling block -- being acquired by the state government.

Trinamool Congress chief Mamata Banerjee has refused to endorse any law that leaves the job of buying 70 per cent of the land to the private sector.

NAC, which met on Wednesday, also recommended that farmers must get six times the registered value of the land as compensation.

"If the land is resold, the farmer will get 25 per cent of the difference," said NAC member NC Saxena.

Two legislation, the Land Acquisition (Amendment) Bill 2009 and the Resettlement and Rehabilitation Bill, 2009, have been envisaged.

These, the prime minister has said, will be placed before Parliament in the monsoon session.

However, NAC has proposed modifications.

The new Bill will be called the National Development, Land Acquisition, Resettlement and Rehabilitation Act.

It will have several important features.

One, the proposed compensation is six times the registered sale deed value, including the solatium.

This will apply to government land as well.

The oustees will have the choice of getting compensation either in lump sum or annuities, according to the Bill. At least one person from each ousted family will be entitled to a job in the enterprise that comes up on their land.

NAC also said that acquisition should be permitted only for public purposes.

"This will be defined as acquisition necessary for strategic and infrastructural purposes, and for social services like education and health care", said a press release issued by NAC.

This means that the purpose for which land may be acquired has been narrowed.

The 2007 version said land could be acquired 'for any purpose useful to the general public if 70

per cent of the land has been purchased from willing sellers through the free market'.

The compensation policy has been made more stringent.

If the land belongs to those whose livelihood depends on it -- tribals, tendu leaf collectors, fisherfolk, etc -- they will be entitled to a grant amounting to 10 days of minimum wages per month for 33 years.

NAC said a National Commission for Land Acquisition, Resettlement and Rehabilitation should be set up.

It should have powers to supervise and exercise oversight over land acquisition, resettlement and rehabilitation.

"Penal fines are to be imposed by NCLRR based on the responsibility fixed by the state government by issuing job charts," said NAC.

Saxena said the NAC's recommendations would please industry by making the process of acquiring land more transparent.

"Where the acquisition affects less than 400 households, industry has a choice.

"Either it can buy directly from farmers or it can request the state government. If it requests the state government, it must pay the entire package," said Saxena.

But for large projects affecting more than 400 households, industry should come to the government, said NAC.

"Industry will have to bear the entire cost of not only the land acquisition but also rehabilitation and resettlement," said Saxena.

He said if the land was resold over 20 years, 25 per cent of the difference in value would go to the original owner in every sale.

NAC also suggested that two per cent urban land be reserved for street vendors. It also recommended a body to guard the rights of street vendors.

NAC also suggested an overhaul of the Integrated Child Development Services and more stringent measures to stop scavenging.

It also proposed a social audit of the rural job scheme.