The prime minister said if riots cannot be prevented, there should be adequate compensation for the victims.
"So, I think these are two basic principles which underline the purpose of the communal violence bill. I think it is a bill whose time has come," Manmohan Singh said.
"What happened in Muzaffarnagar and some other parts of our country is a reminder that although as a country we can take pride in our ability to protect all the people of our country, yet there are times when aberrations take place," he said.
"This bill, if it is passed by the Parliament, will help control those aberrations," he added.
Several state chief ministers have voiced their strong opposition to the bill, saying it would be destructive to the federal structure of the constitution.
(With IANS inputs)