Fending off criticism that the much-awaited Land Acquisition Rehabilitation and Resettlement (LARR) Bill 2011, cleared by the cabinet on Monday and introduced in parliament on Wednesday, failed to strike a balance between development and displacement, the rural development minister Jairam Ramesh said the bill was the best possible balance between the Medha Patkars of the world and advocates of economic growth.

“The civil society has criticized the bill saying it has not addressed the concerns of the affected and displaced well enough and the industry bodies have said it has gone too far in addressing the concerns of the same. This means we have been able to strike a balance,” he said.

He also gave credit to congress general secretary Rahul Gandhi for his crucial inputs.

“It was only due to the efforts of Rahul Gandhi that the bill was introduced in the parliament in 55 days,” he said.

Emphasizing on the changes brought about in the draft bill that was first put on the website of the ministry inviting feedbacks, he said the new bill has taken into accounts all the major suggestions and concerns from all the quarters.

He said the definition of public purpose had been tightened and it now stood only for strategic purposes, infrastructure and industry. In case the government acquired land for the private companies, the consent of the 80 percent of the affected families would be required.

Also the new bill bans change of purpose in the land use plan submitted and facilitates transfer of land acquired back to the state government's land bank if not used for 10 years.

The much reviled urgency clause, which earlier has been used rampantly by authorities to acquire land, has been touched upon too. It can, according to the revised draft of the bill, be invoked only for national defense and security purposes and in the event of emergencies or natural calamities. The ‘rarest of rare’ clause has been done away with.

On dilution of compensatory amount from six percent to four percent of market price of the land in the rural areas and from four percent to two percent of the land in the urban areas, he said it was done to reduce the prospect of prohibitory cost of land acquisition.  

Another major change in the revised bill is the retrospective effect clause. LARR 2011 will apply to all cases of land acquisition where the award has not been made under LA Act 1894, or the possession of land has not been taken.

On introduction of new clause in the form of five percent cap in acquisition of multi-crop irrigated land, he said it was done on insistence of agriculture minister Sharad Powar.

The bill also gives maximum flexibility to the states. It allows all states to enact any law or policy related to land acquisition and rehabilitation and resettlement, provided the same does not contradict or reduce the entitlements under LARR 2011.

“The states are free to give any amount of compensation which is more than that fixed in the bill,” the minister said.

He said the bill was pro-landowners and those who would lose livelihoods as well as pro industry.

"It was a difficult balance to make and I think we have been able to make that balance in this bill," he said.