Land and its management falls under the legislative and administrative jurisdiction of the States (as provided in Entry No. 18 of List II (State List) of the Seventh Schedule to the Constitution). Setting up of industries on agricultural land is done by the concerned State Governments/UT Administrations.

The Central Government has enacted the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation & Resettlement Act, 2013, which came into force on 01.01.2014, under which land can be acquired for public purpose which inter-alia includes projects for industrial corridors. Section 10 of the Act stipulates that multi-cropped irrigated land shall not be acquired other than under exceptional circumstances as a demonstrable last resort.

This information was given by the Minister of State in the Commerce and Industry, Som Parkash, in a written reply in the Lok Sabha today.

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MM/SB

Acquisition of agricultural land restricted; multi-cropped irrigated land barred except as last resort under compensation law. Setting up industries on agricultural land is governed by State and UT authority over land management, while the Central Act permits acquisition for public purpose including industrial corridors. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 restricts acquisition of multi-cropped irrigated land except in exceptional circumstances as a demonstrable last resort, thereby limiting acquisition of productive agricultural land for industrial projects.