rou acquisition

By

Shri. M.K. Moharana

Ch. Manger-RKPL

Land, ROU Acquisition & Statutory

Issues

April 25-26, 2013

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India Oil & Gas Pipeline Conference

Why Pipelines

2

Economical

Environment Friendly

Low Risk

Large Volumes

Lesser Risk for Spillage

Salient Features of Pipeline Project

3

A pipeline project involves laying of buried pipeline of

specified length & diameter to transport Natural

Gas/Petroleum Products/Crude oil from one or multiple

supply source & delivery location.

Important components of Pipeline Project are:

Dispatch/Pumping station

IPS/CP stations

SV/CP stations

Receipt stations

Salient Features of Pipeline Project

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Pipe & Equipment Procurement

Acquisition of Permanent Land for pumping station,

Receiving station and SV stations.

ROU for line pipe laying.

Statutory regulations and clearances.

Laying of Pipeline

Pre Commissioning & Commissioning

Statutory Regulations & Clearances

Laying of a cross country pipeline requires various

clearances from different authorities. Broadly these are:

Authorization from Petroleum & Natural Gas

Regulatory Board for laying of cross country petroleum

liquid & gas pipeline except dedicated lines.

Environment clearance/Permission to lay pipeline

through wild-life/Sanctuary/ eco-sensitive zone.

CRZ clearance, for pipeline passing through CRZ.

Permission for crossing of Roads / Rivers / Canals /

Railway / Wet-lands / Highways etc.

5

Permission for way–leave facility to lay the pipeline in

Port land in case pipeline is to pass through the port

land.

Explosive Clearance from PESO.

Clearance from Pollution Control Board of respective

State Govt.

Approval from Fire Advisor, Ministry of Home Affairs for

the pipeline.

Gazette Notification for Declaration of Prohibited area

for Dispatch/Pumping stn., IPS/CP stn., SV/CP stn. &

receiving stn.

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Statutory Regulations & Clearances

ROU Acquisition ( under P&MP ACT,1962)

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ROU Acquisition is done thru competent

Authority appointed for the project.

Request required to be made for services of

state govt. revenue personnel on deputation to

serve as Competent Authority (C.A).

Central gazette notification to declare

appointment of “C.A” under the P&MP ACT for

dealing with cases related to land and further

notifications for acquisition etc.

Competent Authority handles following activities:

Preparation of 3(i) proposal & submission to MoP&NG

3(i) Gazette notification.

Notice Servicing for 3(i)

Hearing of Objection after minimum 21 days notice

Process of ROU Acquisition

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Preparation of 6(i) proposal & submission to MOP&NG


Notice Serving for 6(i) to the land owners

Distribution of Compensations.

Opening of ROU

Process of ROU Acquisition

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Process of Land Acquisition

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Permanent Land Acquisition The requirement of number of permanent land along the pipeline route is determined after detail engineering. Permanent land is required for Despatch Terminal /Receipt Terminal /SV station /IP station. The steps involved are :

Plot Identification

Submission of proposal to concerned authority for acquisition

Process of Land Acquisition

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Publication of 4(i) gazette notification.

Notice Servicing & Hearing of Objection


Declaration of award

Possession & Registration of land.

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ROU Compensation:

Restriction is imposed in the ROU notified land on sale

purchase and permanent construction.

Compensation is paid only at the rate of 10% of market

rate of land for the ROU acquired.

Compensation is given based on Government rates

which is much below the prevailing land rates.

Major Challenges in Land/ROU Acquisition

13

ROU Compensation: Solutions

The compensation should be reviewed for amendment to cover inflation burns and other basic necessities of the affected land owners. Recent times have shown scarcity of land and its multi-fold appreciation in a short span of time.

Permanent acquisition of Pipeline ROU can be done

Develop a common corridor which can be utilized for pipeline laying.


14

Lack of Trust and uproar by local villagers:

Villagers often indulge in violent protest & uproar as they are not aware of the benefits of the pipeline project.

Solution:

Trust can be developed by driving high Corporate Social Responsibility (CSR) activities through affected areas and providing work opportunities to locals.


15

Approval from various Departments:

DFCC, Irrigation departments etc are not clear about the

provisions provided in pipeline and what standards should be followed for providing approvals.

Solution:

The procedure should be standardized at ministry level.

A standard booklet should be issued to all the concerned.

Common safety parameters should also be provided in the booklet.

Statutory Issues

16

Change in Jurisdiction of Approving authority:

Jurisdictions of canal (LGC) and roads (PIU) were changed

from one authority to another after issue of demand

notes. This lead to submission of fresh applications to new

authorities for approvals, resulting in delay.

Solution:

Approval should be given by the department issuing the

demand note. Any such approval should be honored by all

the authorities, even if jurisdiction is changed in between.

Statutory Issues

17

EIA study /Environmental & Forest clearance

For obtaining Environment & Forest Clearance, Project Proponent

needs to conduct EIA & RA Study of the entire route including

boosting stations. Even Population Density Index needs to studied.

Time elapse to wait for field data collection for EIA study till

monsoon period is over.

Time consuming environmental public hearings required to be

conducted in every districts of each states through which pipeline

shall be traversing .

Solution:

EPH shall be conducted after 30 days of press notification involving

all the stakeholders.

Statutory Issues

Recommendations

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Expeditious approval of Land Acquisition, Rehabilitation

and Resettlement (LARR) Bill, 2011.

Pipeline industry to be declared as “Infrastructure

Industry”.

To exempt pipeline industry from the purview of MoE&F,

GoI circular dated 30.7.2009 and 21.3.2011

Speedy deputation of Revenue staff and competent

authority by State Govt.

The compensation should be reviewed for amendment

to cover inflation burns and other basic necessities of the

affected.

Recommendations

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Beneficiaries receiving compensation ought to be

counselled on effective deployment of the large

amounts they receive as lump sum payments.

A major innovation introduced by Haryana in 2010 is

the 'No Litigation Incentive'. Under this incentive,

designed to reduce avoidable litigation around land

acquisition, an additional 20 per cent of the basic rate

of land determined by the Land Acquisition Collector

would be paid as incentive to landowners who do not

challenge the acquisition of their land, and accept the

compensation awarded as final.

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THANK YOU

rou acquisition

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