Right of User Acquired for Paradip-Hyderabad Petroleum Pipeline in Andhra Pradesh

The Ministry of Petroleum and Natural Gas, through two separate notifications, S.O. 2270(E) and S.O. 2271(E), issued on July 7, 2020, formally declared the acquisition of the right of user in specific land parcels located in the East Godavari and West Godavari districts of Andhra Pradesh. These notifications, published in the Gazette of India on July 8, 2020, came into force upon their publication. The Central Government invoked its powers under Sub-sections (1) and (4) of Section 6 of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (Act 50 of 1962), to facilitate the laying of a pipeline for the transportation of petroleum products. This acquisition is integral to the implementation of the Paradip-Hyderabad Pipeline Project, a significant infrastructure initiative undertaken by the Indian Oil Corporation Limited, connecting Paradip in Odisha to Hyderabad in Telangana.

The process for this acquisition commenced with earlier notifications, S.O. Number 579(E) dated January 28, 2020, and S.O. Number 651(E) dated February 10, 2020, for East Godavari, and S.O. Number 3939(E) dated October 25, 2019, for West Godavari, which declared the Central Government's intention to acquire the right of user. Following these initial declarations, copies of the Gazette were made available to the public, and the Competent Authority, as mandated by Sub-section (1) of Section 6 of the said Act, submitted its report to the Central Government. After reviewing these reports and being satisfied that the land was indeed required for the pipeline, the Central Government proceeded with the formal acquisition. The notifications specify that the right of user in the land, detailed in the appended schedules, is acquired for the pipeline project. Crucially, the Central Government directed that this right of user shall vest directly in the Indian Oil Corporation Limited upon the date of publication of the declaration, free from all encumbrances. Furthermore, the Indian Oil Corporation Limited is explicitly made exclusively liable for any compensation payable under Section 10 of the 1962 Act, ensuring that no suit, claim, or legal proceeding can be brought against the Central Government concerning any matter related to the pipeline.

The legislative intent behind these notifications is to provide the necessary legal framework for the timely execution of vital energy infrastructure projects. The Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962, serves as the foundational statutory framework, enabling the government to acquire limited rights over land for public utility projects without necessarily acquiring full ownership. This approach addresses the practical challenges of land acquisition for linear projects like pipelines, where only a specific right of passage or use (right of user) is required, rather than outright ownership. The policy rationale underscores the importance of ensuring efficient and secure transportation of petroleum products across states, which is critical for national energy security and economic development. By vesting the right of user directly in the implementing agency, Indian Oil Corporation Limited, and assigning it the sole responsibility for compensation, the notifications streamline the process and clarify liabilities, thereby mitigating potential delays and legal complexities for the Central Government. 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 India Oil Corporation Limited, free from all encumbrances.” This mechanism ensures that while landowners are compensated for the use of their land, the project can proceed without the more extensive and often protracted procedures associated with full land acquisition.

Keywords: Petroleum and Minerals Pipelines Act, 1962, Right of User, Land Acquisition, Paradip-Hyderabad Pipeline, Indian Oil Corporation Limited, Ministry of Petroleum and Natural Gas, Andhra Pradesh, East Godavari, West Godavari

Geo Tags: Country: India State: Andhra Pradesh District: East Godavari, West Godavari