Power to purchase or lease the land by agreement

(1) The Board may enter into an agreement with any person for the acquisition from him by purchase, lease or exchange of any land which is needed for the purposes of a rehabilitation scheme, or any interest in such land, or for compensating the owners of any such right in respect of any deprivation thereof or interference therewith: Provided that the previous approval of the Government shall be obtained in case of purchase or exchange involving land worth more than Rs. 5,00,000 or lease for more than five years. (2) The Board may also take necessary steps for the compulsory acquisition of any land or any interest therein required for the execution of a rehabilitation scheme in the manner provided in the Land Acquisition Act, 1894 (Central Act of 1894) and the acquisition of any land or any interest therein for the purposes of this Act shall be deemed to be acquisition for a public purpose within the meaning of the said Land Acquisition Act, 1894.