Deciphering the Land Acquisition and Rehabilitation & Resettlement Act, 2013

It has been evidenced that around one-third of India’s conflicts in the last decade have been over land rights. The public concerns were growing over absence of national law to guide land acquisition process, rehabilitation & resettlement and compensation for the loss of livelihood. Although multiple amendments were made to the colonial Land Acquisition Act of 1894 over a period of time but such piecemeal approaches failed to address the concerns of the farmers whose livelihood were dependent on the land being acquired. It affected growth of industry adversely, the shift of Tata Motors’ Nano factory from West Bengal to Gujarat, being a case in point.

The Central Government felt the need to address the concerns of the farmers while facilitating the land acquisition for industrialization, infrastructure and urbanisation. On September 7, 2011, “Land Acquisition and Rehabilitation & Resettlement (LARR) Bill” was presented by Ministry of Rural Development (MoRD) to the Union Cabinet. It was then referred to the Standing Committee on Rural Development for examination. Based on their suggestions and inputs from various stakeholders, an amended version of LARR Bill was re-presented to the Union Cabinet and was cleared with a few additional amendments in December 2011. The bill was renamed “The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill 2013” to clearly reflect its objectives. It was then approved by both the houses of parliament in September 2013.

Scope of the Act

The Act aims to establish the law on land acquisition, as well as the rehabilitation and resettlement of those directly affected by the land acquisition in India. The scope of the Act includes all land acquisition whether it is done by the Central Government of India, or any State Government of India, except the state of Jammu & Kashmir.

The Act is applicable when:

• Government acquires land for its own use, hold and control, including land for Public sector    undertakings.
• Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose.
• Government acquires land for immediate and declared use by private companies for public purpose.

Important Provisions the Law

•      Consent of 80 percent of the people whose land is being acquired is required for a private project. This criteria has been relaxed to 70 percent for public private partnership.
•     Multi-cropped, irrigated land cannot be acquired unless it is for defence or emergency caused by natural calamity. The land so acquired cannot be more than 5 percent of total such land in the district, provided the compensation by alternate waste land.
•    Compensation in rural areas would be calculated by multiplying market value, i.e. the maximum of‘minimum value as per Indian Stamp Act 1899’ or ‘average of the sale price of the land in the adjoining area for the sale deeds registered during the past three years’, by two and adding assets attached to the land or building (Building/Tree/Well/Crop) and adding a solatium of 100 percent of compensation.
•      If land is taken for urbanisation 20 % to be reserved for affected families and given in proportion to their acquired land at a cost equal to acquisition and development.
•       Affected families can be offered/obtain shares not more than 25 % of the compensation.
•      The Act also proposes amenities like schools, health centres and civic infrastructure in the resettlement area.

Key Pointers on Rehabilitation & Resettlement Entitlements for Land Owners and Livelihood Losers

Land Owners and Livelihood Losers

•     Sustenance allowance of INR 3000 per family per month for a year
•     Compensation

o   Job for one family member (if applicable) or

o   5 lakhs per family or

o   INR 2000 for 20 yrs with escalation clause.

• House Compensation (Monetary Value)

o   House as per Indra Awas Yojana (Rural Area)

o   House not less than 50 sqmt in plinth area (Urban Area)

• One acre land if acquisition is for irrigation project.
• INR 50,000 transportation allowance
• INR 50,000 resettlement allowance

In addition to the R&R package, SC/ST families are entitled to the following additional benefits

• 2.5 acre land or land lost by the family
•  INR 50,000 one time financial assistance
•  25% additional benefit if rehabilitated outside the district
•  Preferential R&R in the same area
•  Immediate payment of 1/3 value of compensation
•  Free land for social gathering
•  A development plan to be prepared for displaced families

The higher cost involved in Land Acquisition and R&R can be compensated by faster project implementation and reduction in disruptions due to protests and litigations, etc. This can be only achieved by proper implementation of proposed institutional structure which will be the key in creating a transparent and swift land acquisition process. Large investment plans and projects have been stalled due to land acquisition issues or are moving slow in anticipation of clarity on land acquisition policy. The implementation of the law is expected to expedite investment decisions and aid economic growth of the country.

                                                    By

                      Infraline Energy Metals & Mining Research Team

Disclaimer:

The views expressed here are solely those of the author in his private capacity and do not in any way represent the views of the Infraline Technologies (India) Pvt. Ltd. (organization). The organization is not liable for any use that may be made of the information contained therein and any direct/indirect consequences resulting therefrom.