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

The Ministry of Petroleum and Natural Gas issued a Notification, S.O. 5101(E), on November 29, 2021, which was subsequently published in the Extraordinary Gazette of India on December 9, 2021. This notification formally acquired the right of user in specific land parcels located in the state of Andhra Pradesh for the purpose of laying a Liquefied Petroleum Gas (LPG) pipeline. The acquisition was made under the provisions of the Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962 (50 of 1962), following an earlier declaration of intent by the Central Government. The pipeline project, undertaken by Hindustan Petroleum Corporation Limited (HPCL), is designed for the transportation of LPG from Hassan in Karnataka to Cherlapalli in Telangana. The Central Government had previously declared its intention to acquire this right of user through Notification S.O. No. 2827 (E) dated August 14, 2020, with copies made available to the public until September 17, 2020. Following a report submitted by the competent authority under Sub-section (1) of Section 6 of the said Act, and after being satisfied that the land was required for the pipeline, the Central Government proceeded with the acquisition. The notification specified that the right of user in the land, detailed in the appended Schedule, was acquired for laying the pipeline. Furthermore, it directed that this right of user would vest in Hindustan Petroleum Corporation Limited (HPCL) on the date of publication of the declaration, free from all encumbrances (claims or liabilities against the land), rather than vesting in the Central Government. HPCL was explicitly made exclusively liable for any compensation payable under Section 10 of the 1962 Act, ensuring that no legal proceedings would lie against the Central Government for matters related to the pipeline. The notification came into force upon its publication in the Official Gazette on December 9, 2021.

The legislative intent behind this notification was to facilitate the development of critical energy infrastructure, specifically an LPG pipeline, which is essential for meeting the country's energy demands. The Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962, provides the statutory framework for such acquisitions, balancing public interest in infrastructure development with the rights of landowners. The notification addressed the procedural requirements of the Act by formalizing the acquisition process that commenced with the initial declaration of intent. It clarified the legal position by explicitly vesting the right of user (the right to use land for a specific purpose without acquiring ownership) in the operating entity, HPCL, and delineating its responsibility for compensation. This mechanism ensures that while the Central Government enables such projects, the operational and financial liabilities, particularly regarding compensation to affected parties, rest with the public sector undertaking executing the project. The notification thereby streamlined the process for laying the pipeline, ensuring that the necessary land access was secured while also providing a clear enforcement mechanism for compensation claims under the existing statutory provisions. The land parcels affected by this acquisition are located in Garladinne Mandal, Ananthapuramu District, Andhra Pradesh, as detailed in the Schedule. The legislation provided: “the Central Government hereby declares that the Right of User in the land specified in the Schedule appended to this notification is hereby acquired for laying the pipeline; And further... 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.”

Keywords: Petroleum and Natural Gas, LPG pipeline, Right of User, Land Acquisition, Hindustan Petroleum Corporation Limited, HPCL, Andhra Pradesh, Ananthapuramu, Petroleum and Minerals Pipeline Act 1962

Geo Tags: India, Andhra Pradesh, Karnataka, Telangana District: Ananthapuramu