Ministry of Petroleum Notifies Right of User Acquisition for Key Pipeline Project

The Ministry of Petroleum and Natural Gas, Government of India, issued a notification on December 20, 2021, formally acquiring the right of user in specific land parcels for the ambitious Paradip-Hyderabad Pipeline Project. This notification, S.O. 5380(E), published in the Gazette of India on December 24, 2021, follows an earlier declaration of intent and marks a crucial step in the project's implementation. The Central Government had previously, through a notification dated October 21, 2021, declared its intention to acquire the right of user in land situated in the East Godavari District of Andhra Pradesh for the purpose of laying a pipeline to transport petroleum products from Paradip in Odisha to Hyderabad in Telangana. This project is being undertaken by the Indian Oil Corporation Limited. The "right of user" refers to a limited right to use land for a specific purpose, such as laying a pipeline, without acquiring full ownership of the land.

Following the public availability of the earlier Gazette notification and the submission of a report by the Competent Authority under Sub-section (1) of Section 6 of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, the Central Government reviewed the report. Upon being satisfied that the land was indeed required for the pipeline, the decision was made to proceed with the acquisition of the right of user. Consequently, the Central Government, exercising powers conferred by Sub-section (1) of Section 6 of the said Act, declared the acquisition of the right of user in the land detailed in the notification's Schedule. Furthermore, under Sub-section (4) of Section 6 of the Act, the right of user for laying the pipeline, instead of vesting in the Central Government, was directed to vest in the Indian Oil Corporation Limited (IOCL) on the date of the declaration's publication, free from all encumbrances. The notification explicitly states that the Indian Oil Corporation Limited shall bear exclusive liability for any compensation due under Section 10 of the 1962 Act, ensuring that no suit, claim, or legal proceeding related to the pipeline would lie against the Central Government. The notification came into force upon its publication in the Official Gazette.

The legislative intent behind this notification is to facilitate the timely and unhindered progress of the Paradip-Hyderabad Pipeline Project, a vital infrastructure initiative for the transportation of petroleum products across states. The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, provides the statutory framework for such acquisitions, enabling the government to secure necessary land rights for critical energy projects. This notification addresses the practical requirement of transitioning from a declared intention to an actual acquisition, thereby overcoming potential delays in project execution. By vesting the right of user directly in the Indian Oil Corporation Limited and assigning it the sole responsibility for compensation, the notification streamlines the process and clarifies financial obligations. This mechanism ensures that project-implementing agencies can proceed with construction while safeguarding the interests of landowners through a defined compensation process, without burdening the Central Government with direct liabilities arising from land use.

Keywords: Petroleum pipeline, land acquisition, right of user, Indian Oil Corporation Limited, Paradip-Hyderabad Pipeline Project, Ministry of Petroleum and Natural Gas, Andhra Pradesh, East Godavari, infrastructure, energy security

Geo Tags: India, Andhra Pradesh, Odisha, Telangana District: East Godavari