Farmers must get six times price for their land, 70% must consent: NAC

The Sonia Gandhi-led National Advisory Council (NAC) has said that land acquisition for industries must be government-enabled and displaced farmers must be given six times the registered price of land. Acquisition should be allowed only if at least 70% of farmers agree to part with their land, it felt.

The council also said that in case of non-farmers, in addition to the land price, a minimum of 10 days of minimum wages per month for the next 20 years ought to be part of the compensation package.

At a meeting here on Wednesday, the NAC resolved that if 400 or more households need to be displaced, then the government must step in and acquire the land on behalf of the private company. According to official sources, the council also decided to stick to its stance that land acquisition and resettlement and rehabilitation policies must be integrated into a single law.

Rural development minister Vilasrao Deshmukh on Wednesday reiterated the 70:30 formula for land acquisition: 70% by the industry and 30% by the government. The Land Acquisition Amendment Bill would be sent to the law ministry by the end of the month, he said.

Finance minister Pranab Mukherjee will be holding consultations with West Bengal chief minister Mamata Banerjee in order to address her concerns over the 70:30 formula. Banerjee wants 100% of the land to be acquired by the private company.

He added that the NAC’s other proposal of a comprehensive land acquisition bill which would include a rehabilitation and resettlement policy also would not be possible. There would be two bills dealing with these issues separately, the minister asserted.

The NAC decision assumes significance in the light of the fact that there were two views on land acquisition. One view is that the government must be proactive when the land to be acquired belongs to the poor and the vulnerable while the other view is that it should be left to market forces, with the government playing a regulatory role.

In fact, there was disagreement among members of an NAC working group comprising Harsh Mander, Aruna Roy and NC Saxena on the issue of private companies buying land in tribal areas,which is why the full council met.

Saxena said that it is appropriate for the government to acquire land for private companies. If this is not done, private companies would exploit unorganised, small and particularly tribal cultivators by paying them a pittance, he argued. The alternative view, held by the other two members of the group was to explicitly exclude land acquisition for a project which has ?as its primary objective the benefit of a private interest.?

?If the compensation is good, farmers will not have any problems in selling their land. The council has also suggested that whenever land is sold, 25% of the difference in price should be given to the original landowner,? Saxena told FE.

In its discussion paper on land acquisition, the council has also suggested that the Land Acquisition Act 1894 should be repealed and the two bills, namely Land Acquisition (Amendment) Bill 2009 (LAA 2009) and Resettlement and Rehabilitation Bill, 2009 (R&R 2009) should be consolidated and integrated under the possible title of National Development, Acquisition, Displacement and Rehabilitation Act. ?Having two Bills leaves the possibility of amending one without amending the other, and selective application of provisions of each Act, thereby defeating the purpose of providing justice and relief to those displaced,? the paper said.

Interestingly, the paper rejects the Haryana model that many Congress leaders hold up as exemplary. Indeed, the note says that some state government officials with whom the working group held discussions had said that ?since land was essential for rapid industrialisation and urbanisation, the attempt should be to make oustees partners in growth rather than discourage forced acquisition.?

The revamped NAC has also proposed that a National Commission for Land Acquisition, Resettlement and Rehabilitation (NCLRR) be set up, with powers to supervise, and exercise oversight over land acquisition, resettlement and rehabilitation. It will do this by promoting public accountability and ensuring compliance with legally established policies, procedures and practices. Second, by mediating and responding to complaints and disputes in the capacity of ombudsperson and third, by advising the government.