Land acquisition in India

Land Acquisition in India refers to a situation where the poor or low wage earners (characterized as farmers), own land allocated for industrial construction and these farmers are not adequatly compensated. As the economy approaches the industrial stream from the agrarian with more factories and industries, the poor peasants often are made to sacrifice their land. This is consequences of an old bill, the Land Acquisition Act, 1894 where prices per-acre of land has been fairly low. Further, the political parties in India have widely dominated the influence and control over the acquisition process in India.

Contents

Description

It has occurred in India since the era of Independence, with over 21.6 million people in the period of 1951-90.[1] They have been displaced with heavy scale projects like dams, canals, thermal plants, sanctuaries, industries and mining. These occurrences are further being categorized as ‘development-related displacement’.

The process of Land Acquisition in India has proved out to be poor in regard to growth of the country. The amount reimbursed is fairly low with regard to the current index of prices prevailing in the economy. Furthermore, due to the poor Human Capital of the displaced people they fail to get jobs and are a victim of several problems.

The draft of the government’s ‘National Policy for Rehabilitation’ states that a figure around 75% of the displaced people since 1951 are still awaiting rehabilitation.[2] However, it should be noted that displacement is only being considered with regard to ‘Direct Displacement’. These rehabilitation policies do not cover fisher folk, landless laborers and artisans. On a rough account, almost one in ten Indian tribal’s is a displaced person. Projects that comprise of dams have displaced close to a million adivasis. The stories of displaced dalits are even harsher to know. The ‘Walter Fernandes of the Indian Social Institute’ have made a remark that 40 per-cent displaced people are of tribal origins.

There have been a rising number of political and social protests against the acquisition of land by various industrialists. They have ranged from Bengal, Karnataka to Uttar Pradesh in the recent past. The acquisition of 997 acres of land by Tata motors in Bengal in order to set-up a factory for the cheapest car in India. Similarly, Sardar Sarovar Dam on the river Narmada which was later canceled by the World Bank. The Land Acquisition Act of 1984 allows the government to acquire private lands. It is the only legislation pertaining to Land acquisition which, though amended several times has failed to serve its purpose.

At present, the displaced people are only liable for a monetary compensation which is still quite minimal. Many that get displaced are from the poorest sections, the majority are tribal and fail to raise their voice against the mishappenings. Another important aspect has been the ignorance of stakeholders in the share of the property. This provides benefit to many entrepreneurs and promoters of the company.

Several journalist and media-persons have commented on the lack-of-will in regard to a strong bill by the government, for a county with a large democracy this a dark blot of Land acquisition on the promising record of India. The execution of the bill and the passing is not only the solution, it’s proper implementation with the time-regard is the most desired object to be achieved. The issue concerning displacement proves an example of how law has to be consistent with socio-economic and political turmoil’s.

Displaced Tribals [3]
Project State Displaced Population Tribal Percentage
Karjan Gujarat 11,600 100
Sardar Sarovar Gujarat 2,00,000 57.6
Maheshwar Madhya Pradesh 20,000 60
Bodhghat Madhya Pradesh 12,700 73.91
Icha Bihar 30,800 80
Chandil Bihar 37,600 87.92
Koel Karo Bihar 66,000 88
Mahi Bajaj Sajar Rajasthan 38,400 76.28
Polavaram Andhra Pradesh 1,50,000 52.90
Maithon & Panchet Bihar 93,874 56.46
Upper Indravati Orisa 18,500 89.20
Pong Himachal Pradesh 80,000 56.25
Ichampalli Andhra Pradesh 38,100 76.28
Tultuti Maharashtra 13,600 51.61
Daman Ganga Gujarat 8,700 48.70
Bhakra Himachal Pradesh 36,000 34.76
Masan Reservoir Bihar 3,700 31
Ukai Reservoir Gujarat 52,000 18.92

Issues

There are various issues that need to be monitored in effect to control the present day conflict pertaining to the Land Acquisition Act, 1894. The Land Acquisition Act, 1894 currently a has colonial flavor, and it needs to be adjusted with the present day rural-urban social issues of India. Some of the important issues have been portrayed below.[4] The major land acquisition and conflicts happen in the densely populated areas of the countryside where the education among the masses has been fairly low.

Legislative Changes

There requires a wide range of legislative changes, because the economic and social policies have changed since 1984. Thus the Land Acquisition Act, 1894 proves to be inadequate. There has been a emphasis on elaborating public policy in the present bill. Also, the assumption that the seller is willing to sell his land is often being regarded as inadequate. The monetary compensation being claimed by the land-owners have been fairly low, as the price-level for basic commodities have changed since 1984. There has been no provision for a compulsory Social Impact Assessment and lastly no recognition of indigenous rights.

Monetary Compensation

The compensation for the acquired land is based on the value of the agricultural land, however price increases have been ignored. The land value would increase many times, which the current buyer would not share the surplus value.[5] Secondly, if the prices are left for the market to determine, the small peasants could never influence the big corporate tycoons. It strictly creates the unfair price management leading to land acquisition in India.

The compensation provided to the farmers should characterized into two basic categories. A minimum amount in relation to the present market value should be paid to the person while a monthly pension should be paid from a trust where the company shares are vested. Further since the agricultural yield has a major contribution towards the agricultural laborers and sharecroppers, a part of compensation should be allocated in their favor. The state should further contribute towards some form of welfare payments.

Delayed Projects

These delayed projects due to mass-unrest have caused a damaging effect to the growth and development of companies and the economy as a whole. Earlier states like Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh had been an attractive place for investors, but the present day revolts have shown that land acquisition in some states pose problems.[6] It has often been found to badly effect the Stock Market and the investment decisions in the infrastructural base for the economy.

Corporate Social Responsibility

The present day infrastructural base which comprises the sub-rural and urban areas have come under the influence of big corporate tycoons. These corporations have raised the issue of social responsibility for the poor and small landowners depicting their aspect of welfare motive for them. It has often being termed today as Corporate Social Responsibility.[7] India happens to be a land of multi-racial and caste structure with societies are based on them. Hence, acquiring land is important to study because such sensitive issues exist while acquiring land for construction purpose. The issue of land acquisition by corporations happens to be more concerned issue than the market and technology for the construction.

The forms of responsibility claimed by corporations have been:

References