Rehabilitation to be an Act, not just policy

The official said the Act would specify that states should acquire land only if bulk of the total requirement, say over 75 per cent, was already purchased by the private developer. The idea, they added, was to ensure that government role in land acquisition was minimal.

Any dweller living on or owning the land for just one year will be compensated instead of a three-year period, as envisaged in the original plan. For the purpose, affected people will be defined as those who are either displaced or lose 50 per cent or more of their assets, income, shelters or livelihoods, regardless of their legal title.

In what may put a severe constraint on developers of special economic zones (SEZs) and large projects, the proposed Rehabilitation Bill is likely to stipulate that a project may be approved only if it offers a rehabilitation package acceptable to at least 50 per cent of the affected families.

In addition, any deviation from an approved rehabilitation timetable will attract severe penalties. Besides, the displacement of population will be allowed only in projects of national interest and public purpose.

At the same time, the Bill may propose that while determining compensation, replacement value at market rates be the basic principle. This will mean that the compensation would be worked out on the basis of the price of alternate land or accommodation to the displaced family and not at the value of the actual land holding.

As a part of the rehabilitation package, it is likely to be insisted that all compensation be paid at least two years before a person is displaced.