Union Cabinet has 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 last evening. Briefing reporters after the meeting, Finance Minister Arun Jaitley said that the new provision has been added to liberalise the Act for the land acquisition. The amendment in the Land Acquisition Act was approved to remove many difficulties as the existing act puts restrictions on buying land which created a barriers in several projects of sectors including railways and roads. 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. He, however clarified that the provision of higher compensation will be applicable to these projects. Mr. Jaitley 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.

The Finance Minister also informed that the Cabinet has also decided to regularize unauthorized colonies in the national capital which came into existence till 1st of June 2014. He said, the move will benefit 60 lakh people living in these colonies.

In an another decision, the Cabinet also approved the infusion of 60 crore rupees in Industrial Finance Corporation of India to make it a government company by way of acquisition of preference shares from existing share holders.
The cabinet also gave its nod for leasing of Airports Authority of India's land to Indian Coast Guard and Indian Navy at Juhu, Vizag and Porbandar airports.