The government is considering enacting a law making it mandatory for industries to rehabilitate the displaced people before developing projects under the special economic zones.

The government decision comes in the wake of protests over land acquisition for SEZs.

Piloted by the rural development ministry, the new Resettlement and Rehabilitation Bill is currently being examined by the Law Ministry, government officials said.

Besides enacting the law, the Land Acquisition Act too would be amended to give the new law an overriding effect over the Land Acquisition Act and the Special Economic Zone Act.

Rural Development Minister Raghuvansh Prasad Singh had said earlier his ministry's relief and rehabilitation policy would soon go to the Cabinet.

Singh indicated that compulsory land acquisition for industrial projects including Special Economic Zones would not be allowed 'at any cost' in the policy.

He said his ministry would ensure that the interests of farmers are protected.