1 T HE R IGHT TO F AIR C OMPENSATION AND T RANSPARENCY IN L AND A CQUISITION, R EHABILITATION AND R ESETTLEMENT A CT,

Why land acquisition? Change of landuse from crops to non- agriculture increases employment per unit of land Land records are often in a bad shape, making it impossible for industry to buy land privately Land costs only 1 to 3% of the total project cost, hence enhanced compensation should result in a win-win situation Uncertainty and delays escalate costs 2

Problems at the States’ level in direct purchase Change in landuse from agriculture to non- agriculture requires permission from the state govts Non-agriculturists cannot buy agricultural land in some states Poor farmers may sell at a low price, and large farmers who sell later may get a higher price Delays in getting permissions has led to emergence of land mafia 3

4 Problems with the old LA Act, 1894 Low compensation, hence people resist acquisition and displacement R&R often ignored No compensation to agr labour dependent on land Acquisition takes too much time Indiscriminate use of urgency clause Lack of transparency & corruption Delays result in project cost escalation Courts increase compensation by several times Land is now required for private projects Locals hardly get employment in the new enterprises because of lack of skills

5 Displacement by Different Projects and Rehabilita -tion in Orissa from Type of Projects Total Displaced Total Rehabilitation Percentage of Rehabilitation Hydro-Electric Multipurpose4,25,00090,00021 Industrial71,79427,00038 Mining1,00,00060,00060 Sanctuary etc.50,00015,54031 Total5,46,7941,92,54035

6 6 Salient features of the new Act, 2013 Consent of 80% land owners is mandatory if land is needed for private companies Consent of gram sabha (village councils) in Schedule V, VI areas inhabited by indigenous peoples Rehabilitation and Resettlement must always, in each instance, necessarily follow upon acquisition of land Social Impact Assessment made mandatory Consent clause is likely to be bypassed even where land is given later to private parties

7 7 Compensation Minimum of two times for urban areas and two to four times the present registered value for rural areas. For future transactions 40% of the appreciated land value will be given to the original land owner, if no development has taken place on such land. Offer of company shares up to 25% of the Compensation amount Where the Award under the 1894 Act has not been made then compensation will be paid at rates under this law No compensation when forest or government land is resumed

8 8 R&R Entitlements For Land Owners and livelihood losers: 1.Subsistence allowance at Rs per month per family for 12 months; 2.A job or Rs 0.5 million or Rs 2000 per month per family as annuity for 20 years, with appropriate index for inflation; 3.For a lost house, or a house of not less than 50 sq mts 4. 1 acre of land in the command area in irrigation projects; 5.Rs 50,000 for transportation; 6.A one-time ‘Resettlement Allowance’ of Rs 50,000; 7.In urbanisation projects, 20% of developed land reserved for the affected on payment 8

9 9 Process Flow Proposal is Received by the Appropriate Government Legitimacy of ‘Public Purpose’ and SIA is approved by CS Committee (if above 100 acres) or by a Delegated Committee if below 100 acres) Social Impact Assessment (SIA) Conducted by Appropriate Government Finalization of R&R Scheme Publication of Preliminary Notification to acquire Public Hearing Pre- Notification Notification Collector submits report on status of alternative sites Awards Draft Declaration& R&R Scheme published 9 SIA to be examined by independent Expert Group Consent of 80% of Affected sought

10 Institutional Structure State LA&RR Authority State Commissioner, RR Administrator, RR District Collector RR Committee Centre State Project-level Dispute Resolution for State Projects Overall Admin for LA&RR in State Admin Project-level RR Overall coordination and implementation Oversight (Elected reps, civil society, line agencies) Chief Secy Committee Determine whether projects are for public purpose National Monitoring Committee 10 Oversight at Central Level for all projects

Some critical old Laws remain unchanged 13 Acts of the Central Government are still in force that allow for land acquisition. These include legislations relating to National Defence, National Highways, Railways, Coal Mining, etc. The new law does not apply to the activities covered under these Acts. 11

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