The state government has objected to the provision of mandatory employment to at least one member of an affected family and payment of 15% interest on excess compensation in the draft Land Acquisition and Rehabilitation and Resettlement Bill 2011.
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Revenue minister N Raghuveera Reddy in his letter to the Centre forwarded the state’s suggestions/comments on 11 different subjects that could result in a huge financial burden on the state’s exchequer.
The state government has also differed with the Centre’s view on the return of unutilized land to the land owner if the acquired land remained unutilized for a period of five years from the date of possession. It observed that thousands of acres had been acquired under Jalayagnam programme and the area acquired for the purpose of reservoirs was not yet utilized even after the expiry of five years.
The state pointed out that since it acquires land with a vision for the next 10 years and future needs, the clause of five years for re-conveyance to land owners in case of non-implementation of projects was not feasible as the state had to implement its infrastructural projects with a view of social responsibility for future generation irrigation projects. “The period may be extended to 10 years,” it pointed out.
It wanted Section 46 of the draft bill pertaining to payment of 15% interest suitably amended saying, “Payment of 15% interest on excess compensation was creating a high financial burden on the state exchequer for the past 20 years. The sections may be amended for payment of interest payable by nationalized banks at the time of passing the award.”
The state wanted the time period for annuity payments reduced to five years from the proposed 20 years. According to Section 22 of the LARR Bill 2011, the respective government has to pay an annuity of Rs 2,000 per month, indexed to consumer price index.
The state is of the view that “providing job to at least one member of the affected family in the project was practically not possible and wanted a provision for making suitable annuity/compensation.”
The state government wanted a change of the period of passing an award from the proposed one year to the existing two years period under Section 11-A of the LA Act 1894. It also wanted 12% additional market value existing in the LA Act to be included in the draft bill and suggested that the rehabilitation and resettlement (R&R) provision be applied to all cases wherever the land was acquired by the government. Under the proposed bill, R&R provision applies when private companies purchase land equal or more than 100 acres on their own or through government.
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