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

The Ministry of Petroleum and Natural Gas issued a Notification, S.O. 4909(E), on October 17, 2022, formally acquiring the right of user in specific land parcels located in Ananthaparamu District, Andhra Pradesh. This action was taken under the provisions of the Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962 (Act 50 of 1962), often referred to as the PMP Act. The notification follows an earlier declaration of intent, S.O.No.5102(E), dated November 29, 2021, which was published in the Extraordinary Gazette of India on December 9, 2021. The primary reason for this acquisition is to facilitate the laying of a liquefied petroleum gas (LPG) pipeline by Hindustan Petroleum Corporation Limited (HPCL) for the transportation of LPG from Hassan in Karnataka to Cherlapalli in Telangana. Copies of the initial declaration of intent were made available to the public until January 6, 2022, allowing for due process. Subsequently, a report from the competent authority was submitted to the Central Government under Sub-section (1) of Section 6 of the PMP Act, confirming the necessity of the land for the pipeline project.

Upon reviewing the report and being satisfied that the land was indeed required for the pipeline, the Central Government proceeded with the formal acquisition. In exercise of the powers conferred by Sub-section (1) of Section 6 of the PMP Act, the Central Government declared the acquisition of the right of user in the land detailed in the Schedule appended to the notification. Furthermore, utilizing the powers under Sub-section (4) of Section 6 of the same Act, the Central Government directed that this acquired right of user would not vest in the Central Government itself, but would instead vest directly in Hindustan Petroleum Corporation Limited (HPCL) on the date of publication of this declaration, free from all encumbrances (legal claims or liabilities). 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... vest on the date of publication of the declaration, in Hindustan Petroleum Corporation Limited (HPCL), free from all encumbrances.” This means that while the government facilitates the acquisition, the operational rights and responsibilities are transferred to the public sector undertaking. Hindustan Petroleum Corporation Limited (HPCL) is explicitly made exclusively liable for any compensation payable under Section 10 of the PMP Act, 1962. Additionally, Section 13 of the Act stipulates that no suit, claim, or legal proceeding can be initiated against the Central Government, the Competent Authority, any State Government, or any other corporation concerning matters related to the pipeline. The notification came into force upon its publication in the Official Gazette on October 17, 2022. The affected land parcels are located across various survey numbers in Taticherla and Sirivaram villages within the Ananthaparamu and Garladinne Mandals of Ananthaparamu District, Andhra Pradesh.

The legislative intent behind this notification is to ensure the smooth and efficient development of critical energy infrastructure, specifically the LPG pipeline network, which is vital for national energy security and distribution. The PMP Act, 1962, establishes a clear statutory framework for acquiring a "right of user" (a limited right to use land for a specific purpose, such as laying pipelines, without acquiring full ownership) for petroleum and mineral pipelines. This framework addresses the practical challenges of acquiring land for linear projects that traverse multiple private and public properties. By issuing such notifications, the government streamlines the process, ensuring that necessary land rights are secured for public utility projects while also defining the responsibilities of the implementing agency, in this case, HPCL. The earlier legal position required an initial declaration of intent, followed by a formal acquisition order after considering public feedback and competent authority reports. This notification completes the acquisition phase, allowing HPCL to proceed with the pipeline construction. The provisions regarding compensation liability and immunity from legal proceedings for government entities are designed to provide clarity and protect public bodies involved in infrastructure development, placing the financial burden and primary legal responsibility on the operating company. This mechanism ensures that essential projects, like the Hassan-Cherlapalli LPG pipeline, can advance without undue delays caused by complex land acquisition procedures or protracted legal disputes against government agencies.

Keywords: Petroleum and Minerals Pipeline Act, 1962, Right of User, Land Acquisition, LPG Pipeline, Hindustan Petroleum Corporation Limited, Andhra Pradesh, Ministry of Petroleum and Natural Gas, Infrastructure Project, Public Utility

Geo Tags: Country: India
State: Andhra Pradesh, Karnataka, Telangana
District: Ananthaparamu