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

The Ministry of Petroleum and Natural Gas issued Notification S.O. 3996(E) on September 24, 2021, which was subsequently published in the Extraordinary Gazette of India on September 28, 2021. This statutory instrument, a notification, formally declared the acquisition of the right of user in specific land parcels located in Andhra Pradesh. The action was taken under the provisions of the Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962 (50 of 1962), a central legislation governing the acquisition of rights for pipeline projects. The issuance of this notification followed an earlier declaration of intent by the Central Government, published as S.O. No. 62(E) on December 27, 2019, in the Extraordinary Gazette of India No. 60 dated January 2, 2020. Public access to copies of this initial notification was provided until February 25, 2020. Subsequently, a competent authority submitted a report to the Central Government under Sub-section (1) of Section 6 of the said Act. After reviewing this report and confirming the necessity of the land for the pipeline, the Central Government proceeded with the formal acquisition.

The notification specifies that the right of user in the land detailed in its appended Schedule is acquired for the purpose of laying a pipeline. This pipeline is intended for the transportation of Liquefied Petroleum Gas (LPG) from Hassan in Karnataka to Cherlapalli in Telangana, a project undertaken by Hindustan Petroleum Corporation Limited (HPCL). A key provision of the notification is that the right of user, instead of vesting in the Central Government, vests directly in Hindustan Petroleum Corporation Limited (HPCL) on the date of publication of the declaration, free from all encumbrances. Furthermore, the notification explicitly states that Hindustan Petroleum Corporation Limited (HPCL) shall be exclusively liable for any compensation in terms of Section 10 of the PMP Act, 1962, and no suit, claim, or legal proceeding would lie against the Central Government for any matter relating to the pipeline. The land parcels affected are located in Bukkarayasamudram and Pamidi Mandals within the Ananthaparamu District of Andhra Pradesh, with specific survey numbers, acres, and cents detailed in the Schedule. The legislation provided: “Now, therefore, in exercise of the powers conferred by Sub-section (1) of the Section 6 of the said Act, 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, 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 September 28, 2021.

The legislative intent behind this notification is to facilitate the timely and efficient development of critical energy infrastructure across states. By acquiring the right of user, rather than full ownership, the government aims to balance the need for public utility projects with minimal disruption to landowners, while ensuring the project's viability. The Petroleum and Minerals Pipeline (Acquisition of Right of User in Land) Act, 1962, provides a structured legal framework for such acquisitions, addressing the statutory gaps that might otherwise impede the establishment of essential pipelines. This framework allows for the acquisition of limited rights over land for public purposes, such as the transportation of petroleum and natural gas, without requiring outright purchase of the land. The notification streamlines the process by directly vesting the right in the implementing agency, HPCL, and clearly delineating its responsibility for compensation, thereby providing a clear enforcement mechanism and reducing potential liabilities for the Central Government. This approach ensures that vital projects, like the LPG pipeline connecting Hassan to Cherlapalli, can proceed with legal certainty and defined obligations, contributing to national energy security and distribution networks.

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

Geo Tags: India, Andhra Pradesh District: Ananthaparamu