Govt expands definition of ‘public purpose’ as it works on a new land acquisition law

• Strategic purposes, relating to the defence forces or work “vital to the state”

• Public infrastructure: Electricity, communication, water supply, mining,“public facilities”

• Projects “useful for the general public”.

While the draft of the Bill does away with the earlier clause that put restrictions on the government from acquiring land for companies, it has introduced a new element in the definition of “public purpose” to cover cases of “persons” that will include “any company or association or body of individuals whether incorporated or not where land is required for purposes useful for the general public.” The Rural Development Ministry has suggested that this be restricted to those cases where at least 90% of the land has already been purchased. What the final figure will be depends on discussions by the Group of Ministers.

Top officials told The Indian Express that this effectively means that as long as a project’s usefulness to the public can be established — as employment benefit or infrastructure upgrade, for example — the Government may be able to acquire land. Moreover, the public infrastructure category does not differentiate between a public company or a private company.

On the issue of compensation, the draft Bill says that the rate should not be less than the price fixed by the state government or average of higher prices paid in 50% of land sale cases during the previous three years, whichever is higher. Conversion of land to intended category of use should be factored in while fixing the prices, the draft says.