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Question #

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has come into effect from 1st January, 2014. What are the key issues which would get addressed with the Act in place? What implications would it have on industrialization and agriculture in India?

Answer by Chad #

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (henceforth referred to as the Land Acquisition Act) was enacted to provide fair compensation and rehabilitation for those whose land is being acquired for various purposes, such as industrialization, infrastructure development, and urbanization. The Act addresses several key issues, including:

1. Fair compensation: The Act ensures that landowners receive compensation at market rates, which is inclusive of the value of the land as well as the potential income derived from it.

2. Consent of landowners: The Act requires the consent of at least 70% of landowners for acquiring land for public-private partnership projects and 80% for acquiring land for private projects. This provision aims to protect the rights of landowners.

3. Rehabilitation and resettlement: The Act provides provisions for the rehabilitation and resettlement of affected families, ensuring they receive appropriate compensation, along with alternative livelihood options and basic amenities at the resettlement sites.

4. Social impact assessment: The Act mandates the assessment of the social impact of land acquisition, including the potential displacement of people and the impact on their livelihoods.

The Land Acquisition Act has significant implications for industrialization and agriculture in India:

1. Industrialization: The Act may lead to delays in the acquisition of land for industrial projects due to the provision for obtaining the consent of a significant majority of landowners. This could potentially impact the pace of industrialization and infrastructure development in the country.

2. Cost of projects: The Act's provision for fair compensation, including market rates and potential income, may increase the cost of land acquisition for industries and infrastructure projects. This could impact the overall investment required for industrialization and infrastructure development.

3. Alternative land use: The Act encourages the use of wastelands and barren lands for industrial and infrastructure projects to minimize the displacement of people. This may lead to the utilization of non-agricultural land for such purposes, which could indirectly impact agricultural land availability.

4. Protection of agricultural land: The Act's provisions aim to protect agricultural land and ensure minimum disturbance to farming communities. This helps safeguard the interests of farmers and is crucial for maintaining food security in the country.

Overall, while the Land Acquisition Act addresses important issues related to fair compensation and rehabilitation, it also poses challenges and implications for industrialization and agriculture in India. The balance between industrial development and protecting agricultural interests needs careful consideration and implementation.