The government introduced Land Acquisition, Rehabilitation and Resettlement Bill, 2011 in the Lok Sabha to replace a more than 100 year old Act. It proposes to give a much better deal, including higher compensation, to landowners, and sets the stage for a radical overhaul of the 1894 Act.

The bill aims at ensuring among other things, a humane, participatory, informed, consultative and transparent process for land acquisition. Among other things, the bill makes it mandatory for private parties buying 50 acres in urban areas to file intimation with the district collectors on the intent to buy the land, the purpose of purchase and the particulars of the land to be bought. It has also been ensured that consent of at least 80 per cent of the project affected families is to be obtained through a prior informed process. Its rehabilitation and resettlement provisions will apply when private companies buy land for a project – more than 100 acres in rural areas, or more than 50 acres in urban areas.

Enhanced compensation, relief & rehabilitation packages to displaced Private companies to give R&R package even if they directly buy land from landowners, provided area is over 50 acres for urban and 100 acres for rural areas, with a maximum of 5 per cent multi-crop land can be acquired in a district, provided equal degraded land is developed. The bill also says only Public purpose has been comprehensively defined, so that Government's intervention in acquisition is limited to defence and certain development projects only.

The rural development ministry draft has relaxed its earlier proposal for total ban on acquisition of multicrop land. Now, a maximum of 5 per cent multicrop land can be acquired in a district on the condition that equal area of degraded land would be developed. If net sown area is less than 50 per cent of total land in a district, then only 10 per cent of such land is open for acquisition for different projects. It also proposes to develop an equivalent area of cultivable wasteland, if multi-crop land is acquired.

The final version of the bill, prepared after pre-legislative consultation with various stakeholders, clearly states that multi-crop irrigated land could be acquired as a last resort measure.
Indications are that the government may try to get the bill passed in the winter session, after it is vetted by the Standing Committee .