Union Cabinet today approved a proposal to promulgate an ordinance on Land Acquisition Act to strike a balance between farmers' interest and industrial growth. The decision to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 was taken at a Cabinet meeting in New Delhi.

Briefing reporters after the meeting, Finance Minister Arun Jaitley said that new provision has been added to liberalise the Act for the land acquisition. He said, the new provision will apply on the projects vital to national security, rural infrastructure, affordable housing , industrial corridor and projects of social infrastructure.

Mr Jaitley said that if the land is acquired for such projects, the mandatory consent of 80 per cent of the land owners will not be required. Mr Jaitley, however clarified that the provision of higher compensation will be applicable to these projects. He said, the higher compensation provision will also apply to land acquisition for projects under thirteen categories including railways and highways which were exempted in the present Act.