Central Government Acquires Right of User for Paradip-Hyderabad Pipeline Project in Visakhapatnam

The Ministry of Petroleum and Natural Gas issued a notification, S.O. 4431(E), on September 21, 2022, formally declaring the acquisition of the right of user in specific land parcels located in Visakhapatnam District, Andhra Pradesh. This declaration was made under the provisions of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (50 of 1962). The notification, published in the Gazette of India on September 22, 2022, came into force upon its publication. It followed an earlier notification, S.O. No. 652(E) dated February 10, 2020, which had expressed the Central Government's intention to acquire this right for the purpose of laying a pipeline. The project, known as the Paradip-Hyderabad Pipeline Project, is being implemented by the Indian Oil Corporation Limited for the transportation of petroleum products from Paradip in Odisha to Hyderabad in Telangana. The land affected by this acquisition is situated in the Anakapalli Mandal of Visakhapatnam District, with specific survey numbers and areas detailed in the appended schedule. Following the submission of a report by the Competent Authority under Sub-section (1) of Section 6 of the said Act, and after due consideration, the Central Government was satisfied that the land was required for the pipeline.

The legislative intent behind this notification is to facilitate the timely and unhindered development of critical energy infrastructure. The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, provides a statutory framework for the acquisition of a 'right of user' (a limited right to use land for a specific purpose, rather than full ownership) for the construction, maintenance, and operation of petroleum and mineral pipelines. This mechanism addresses the practical necessity of securing access to land for such linear projects, which often traverse multiple private and public landholdings. The earlier legal position, without such a specific framework, would have necessitated more complex and time-consuming land acquisition processes. This notification specifically addresses the need for land access for the Paradip-Hyderabad Pipeline Project, a significant inter-state undertaking. The legislation provided: “Now, therefore, in exercise of the powers conferred by Sub-section (1) of 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 of the said land for laying the pipeline shall, instead of vesting in the Central Government, vests on the date of publication of the declaration, in Indian Oil Corporation Limited, free from all encumbrances.” This provision ensures that the right of user, once acquired, directly vests in the Indian Oil Corporation Limited, the implementing agency, thereby streamlining the project execution and ensuring that the land is available for pipeline laying without any encumbrances.

Keywords: Petroleum and Minerals Pipelines Act, Right of User, Land Acquisition, Paradip-Hyderabad Pipeline, Indian Oil Corporation, Visakhapatnam, Andhra Pradesh, Ministry of Petroleum and Natural Gas Geo Tags: India, Andhra Pradesh District: Visakhapatnam