Learn from Orissa

The protests against land acquisition in Singur, Nandigram and Keonjhar might not have achieved their objective of subverting the projects for which the land was being taken over, but they have managed to bring issues like compensation, resettlement and rehabilitation into sharp focus. As such, it has spurred the government to put together a more humane resettlement and rehabilitation policy so that industrialisation does not suffer on this account. The urgency for doing so arises also because the sub-optimal situation that prevails has allowed the Maoist movement to take advantage and spread its wings in the tribal belt. Disputes and controversies have also forced the government to put on hold the business of setting up special economic zones. Prime Minister Manmohan Singh has now set a deadline of three months for evolving a proper policy.

One basic question is whether the state should get involved in land acquisition in a free market economy. If the government decides intervention is unavoidable, be it only from a public interest viewpoint, land acquisition must be done in a transparent manner, respecting the rights as also the livelihood needs of the people who have to be evicted from their land for no fault of theirs. This means not only adequate compensation and satisfactory resettlement and rehabilitation, but also suitable follow-up action to ascertain that the land is used for the purpose for which it is being acquired.

From this point of view, those involved in the formulation of a new policy need to study Orissa's resettlement and rehabilitation policy, promulgated last year after Arcelor-Mittal signed a memorandum of understanding for setting up its steel plant in Keonjhar. This policy, hailed by some as the best in all states, has several features that could be copied. For one, Orissa encourages direct purchase of land by project promoters at freely negotiated prices. The state comes into the picture only if this effort fails. Besides, it stipulates that any part of the land that is not utilised for the project within the prescribed period will be taken back. The compensation for land is proposed to vary in accordance with the purpose for which it is being acquired (which recognises the fact that land prices change as soon as a change of land use is notified). Significantly, it moots consultations with the people concerned for every aspect of resettlement and rehabilitation through a rehabilitation and periphery development advisory committee (RPDAC), which will have representatives of the affected people, non-government organisations (NGOs) and others. Apart from this, the policy lays down a grievance redress mechanism. Also significant is the stipulation that people will not be displaced before the completion of the resettlement work, to their satisfaction. Had such a provision been in place at the time of implementing projects like the Sardar Sarover dam on the Narmada, the problems encountered in the rehabilitation of the affected people there could have been avoided.

Preparing a national policy that has these and other features would go a long way in getting rid of disputes over land acquisition. Then the Centre will have to persuade all states to amend their policies so as to ensure the intended results.