NEW DELHI: Rural development minister Jairam Ramesh has backed state intervention in acquiring land for public-private partnership (PPP) projects, going against the recommendations of the parliamentary standing committee that scrutinized the bill.
“The government must have a role in land acquisition,” Ramesh told a news conference. “We must recognize that we are not at a stage of development where government’s role can be ‘eliminated.”
The minister said he did not support the idea that corporates only work for their own interests.
“The notion that private companies serve only private interests is something I do not believe in,” he said. Terming the recommendations of the standing committee as “not binding”, the minister said the government will continue with the provision that allows it to acquire land for PPP projects.
Ramesh, however, said he will be open to discussions on the probability of restricting government role in land acquisition for projects that are completely private owned. The original version of the Land Acquisition, Rehabilitation and Resettlement Bill, approved by the cabinet in October last year, allows the government to acquire land under eight conditions. These conditions include acquisition for PPP and private projects, which can establish a public purpose.
The rural development ministry will now hold another round of inter-ministerial discussion before approaching the cabinet with a revised bill, which Ramesh said he hopes to introduce in the monsoon session of parliament.
“At a time when investor sentiment is low and economic growth is under pressure, we need to have a new law quickly and end the uncertainty,” he said. “I will ensure that whatever law we present in parliament facilitates economic growth and not hinder it.”
On the standing committee’s objection to the exemption given to 16 other central Acts from the compensation clause provided in the land acquisition bill, Ramesh said amendments in these Acts will be considered, although there might be opposition from some stakeholders. These Acts include the SEZ Act and the Railway Act.
Citing the five fundamental principles of the bill, the minister said recommendations of the standing committee will be incorporated into the new bill while keeping its basic tenements intact.
The five principles are making way for faster urbanization and industrialization while ensuring adequate compensation; a clear definition of public purpose; flexibility to state governments; timely and transparent procedure of acquisition reducing litigation; and government involvement in projects needed for public purposes.
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