The cabinet on Monday cleared the Land Acquisition Bill which will be introduced in parliament's ongoing monsoon session, a minister said.
"We have cleared the draft Land Acquisition Bill. We will introduce it in parliament soon," a minister said after the cabinet meeting.
According to sources, the cabinet debated the contentious legislation for around two hours Monday.
The draft bill defines 'public purpose' and mentions that once land is acquired for a particular purpose, this cannot be changed. It also stipulates timelines for paying compensation for the land acquired to the owner.
The bill, which combines the earlier Land Acquisition Bill and the Rehabilitation and Resettlement Bill, will pay compensation not only to farmers who own the land, but also to people who live off it, said sources.
Rural Development Minister Jairam Ramesh held discussions with West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee over the bill.
Banerjee had reservations on certain provisions of the legislation.