States Allowed To Acquire 30% SEZ Land Under New Rehab Policy

NEW DELHI: The government has announced a new policy on rehabilitation and resettlement (R&R) that would allow states to acquire 30% land for private developers provided they have acquired the rest 70% in case of industrialisation and SEZ projects.

The policy provides for land-for-land compensation, besides preference to affected families for jobs in projects coming up on their plots. Landowners entitled to compensation would be made stakeholders in the development process by allowing them to take up to 20% of the investment in the form of equity stakes, provided the acquiring entity is authorised to issue these instruments. The proportion of these shares could be enhanced to up to 50% with the prior approval of the government.

The policy discourages speculative transactions of land acquired for public purposes.
Land would be acquired at existing market prices or area floor rate, whichever is higher. In case of a dispute, landowners will be able to approach the Land Acquisition Disputes Settlement Authority, which would be set up soon in every state.

The benefits include allotment of land to the extent available with the government in resettlement areas and preference in employment to at least one person from each nuclear family affected by the project. There will be special provisions for STs and SCs in the rehabilitation package.
The new policy would replace the existing national policy on R&R for project-affected families, enacted during the NDA regime in 2003, parliamentary affairs minister PR Dasmunsi told reporters after the Cabinet meeting here.

The government would soon issue a gazette notification to bring into effect the new policy, Mr Dasmunsi said.

The government has decided to bring in a legislation in the coming session of Parliament on the lines of the new R&R policy to amend the Land Acquisition Act, 1894. The benefits under the new policy would be available to all affected persons and families whose livelihood have been affected. This would also include replacement because of natural calamities and their will be no cap on the number of people or families for the purpose of compensation.

The benefits also include scholarship for education, preference in allotment of contracts and housing benefits, including houses to the landless affected families.

A special provision has also been made for providing lifetime monthly pension to vulnerable persons.