Group of Ministers on SEZ to examine land acquisition

From correspondents in Delhi
July 05, 2007

The Group of Ministers (GoM) set up to formulate relief and rehabilitation measures for those whose land is acquired for industrial projects would examine in detail The Land Acquisition Act on July 19.

The GoM, chaired by Minister for Rural Development Raghuvansh Prasad Singh, would examine the act as it concerned the compensation to be given to farmers, he told reporters.

The GoM had met for the first time on June 20 but was unable to reach a consensus over the crucial issue of land acquisition that has led to a controversy over special economic zones (SEZs) and other major industrial projects.

Finance Minister P. Chidambaram wanted to know why the existing policy of one-time payment as compensation should not continue.

His query came up during an hour-long presentation on the policy by the rural development ministry. In its draft, the ministry has proposed compensation methods that are multi-choice, but also sustained over a period of time in terms of benefits accruing to farmers and others whose land is acquired for the development of SEZ. These include employment in the project to stake holding in the companies.