Central Government Acquires Right of User for LPG Pipeline in Andhra Pradesh

The Ministry of Petroleum and Natural Gas issued Notification S.O. 4910(E) on October 17, 2022, formally declaring the acquisition of the right of user in specific land parcels located in the Ananthapuramu district of Andhra Pradesh. This delegated legislation, published in the Extraordinary Gazette of India, operationalizes the Central Government's previously stated intention to facilitate the laying of a Liquefied Petroleum Gas (LPG) pipeline. The process commenced with an initial notification, S.O.No.1887(E), dated April 19, 2022, which was issued under Sub-section (1) of Section 3 of the Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962 (Act 50 of 1962), hereinafter referred to as the PMP Act. This earlier notification had declared the government's intent to acquire the right of user for the purpose of constructing a pipeline for the transportation of LPG from Hassan in Karnataka to Cherlapalli in Telangana, a project undertaken by Hindustan Petroleum Corporation Limited (HPCL). Copies of the initial Extraordinary Gazette Notification were made available to the public until May 18, 2022, allowing for public awareness and engagement. Following this, a competent authority submitted a report to the Central Government under Sub-section (1) of Section 6 of the PMP Act. After reviewing this report and confirming the necessity of the land for the pipeline, the Central Government proceeded with the acquisition. The notification specifies that the right of user in the land detailed in its appended Schedule is now acquired for the pipeline project. Crucially, the notification directs that this right of user, instead of vesting in the Central Government, shall vest in Hindustan Petroleum Corporation Limited (HPCL) on the date of publication of this declaration, free from all encumbrances. Furthermore, HPCL is exclusively liable for any compensation payable under Section 10 of the PMP Act, 1962, and no suit, claim, or legal proceeding can be brought against the Central Government, Competent Authority, or any State Government or Corporation for matters related to the pipeline, as per Section 13 of the Act. The legislation provided: “And further, in exercise of the powers conferred by Sub-section (4) of Section 6 of the said Act, the Central Government hereby directs that the Right of User in the said land for laying the pipeline shall, instead of vesting in the Central Government, vest on the date of publication of the declaration, in Hindustan Petroleum Corporation Limited (HPCL), free from all encumbrances.” This notification came into force upon its publication in the Official Gazette on October 17, 2022.

The legislative intent behind this notification is to enable the efficient and timely development of critical energy infrastructure, specifically the LPG pipeline connecting Hassan to Cherlapalli. The PMP Act, 1962, provides the statutory framework for the acquisition of a right of user in land for laying pipelines, recognizing the public utility and strategic importance of such projects. This particular notification addresses the practical implementation of that framework for a specific project, ensuring that the necessary land rights are secured. The earlier legal position allowed for the declaration of intent and public consultation, which were duly followed in this case. The notification effectively bridges the gap between the initial declaration of intent and the final acquisition of rights, thereby facilitating the commencement of pipeline construction. By vesting the right of user directly in HPCL, the notification streamlines the operational responsibilities and clarifies the financial liabilities, making HPCL solely responsible for compensation to affected landowners. This mechanism ensures that while the Central Government exercises its statutory powers to acquire the right of user for public purpose, the implementing agency bears the direct financial and operational burden, consistent with the provisions of the PMP Act. The notification does not introduce new rights or obligations beyond those already established by the PMP Act but rather applies the existing legal provisions to a specific infrastructure project, ensuring its smooth execution.

Keywords: LPG pipeline, right of user, land acquisition, Petroleum and Minerals Pipeline Act, HPCL, Andhra Pradesh, energy infrastructure, Central Government notification
Geo Tags: India, Andhra Pradesh
District: Ananthapuramu