Central Government Acquires Right of User for Natural Gas Pipeline in Andhra Pradesh

The Ministry of Petroleum and Natural Gas issued Notification S.O. 1790(E) on April 23, 2024, published in the Gazette of India on April 25, 2024, formally acquiring the Right of User in specific land parcels for the purpose of laying a natural gas pipeline. This action, taken under the provisions of the Petroleum and Minerals Pipelines (Acquisition of Right of Users in Land) Act, 1962 (Act 50 of 1962), facilitates the transportation of natural gas through the Well No. MDSGAA to MDP 7 GGS pipeline project in the State of Andhra Pradesh, to be executed by ONGC Limited. The notification came into force upon its publication in the Official Gazette on April 25, 2024.

This declaration follows an earlier notification, S.O. 4258 (E) dated September 29, 2023, which had initially declared the Central Government's intention to acquire the Right of User in the land. Copies of that initial Gazette notification were made available to the public until October 19, 2023. Subsequently, a Competent Authority, as mandated by sub-section (1) of Section 6 of the said Act, submitted a comprehensive report to the Central Government. After reviewing this report and being satisfied that the land was indeed required for the pipeline project, the Central Government proceeded with the formal acquisition. The Right of User, in this context, refers to the legal entitlement to use the land for the specified purpose of laying and maintaining a pipeline, without transferring full ownership of the land itself.

A key provision of this notification is the direct vesting of the Right of User. Instead of vesting in the Central Government, the Right of User in the specified land for laying the pipeline will vest directly in ONGC Limited, free from all encumbrances, from the date of publication of this declaration. Furthermore, the notification explicitly states that Oil and Natural Gas Corporation Ltd. shall be exclusively liable for any compensation payable under Section 10 of the PMP Act, 1962, ensuring that no suit, claim, or legal proceeding concerning the pipeline would lie against the Central Government. The land parcels affected are located in Alamuru village, within the Dr. B.R. Ambedkar Konaseema District of Andhra Pradesh, covering a total area of 1 hectare and 42 ares.

The legislative intent behind this notification aligns with the broader policy rationale of developing critical energy infrastructure to ensure the efficient transportation of natural gas across the country. The Petroleum and Minerals Pipelines (Acquisition of Right of Users in Land) Act, 1962, provides the statutory framework for such acquisitions, addressing the necessity for public utility projects to secure access to land while balancing the rights of landowners. This notification operationalizes the Act by moving from an initial declaration of intent to a concrete acquisition, thereby enabling the timely execution of the pipeline project. The process ensures that the necessary legal rights are secured for the project, while also clearly delineating responsibilities for compensation. The legislation provided: "And, further in exercise of the power conferred by sub-section (4) of Section 6 of 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 the ONGC Limited, free from all encumbrances." This clause is central to the notification, establishing the legal transfer of the right to ONGC Limited and clarifying the terms of this transfer. The notification thus facilitates the expansion of natural gas distribution networks, which is crucial for India's energy security and economic development.

Keywords: Natural Gas Pipeline, Right of User, ONGC Limited, Petroleum and Minerals Pipelines Act, Andhra Pradesh, Ministry of Petroleum and Natural Gas, Land Acquisition, Energy Infrastructure, Notification, Dr. B.R. Ambedkar Konaseema District

Geo Tags: India, Andhra Pradesh District: Dr. B.R. Ambedkar Konaseema