Land acquisition bill

2015

A road to economic equality and

national growth

History
Land acquisition for industrialization or development
was first governed by The Land Acquisition Act of 1894
According to which , government can acquire land for
public use by notifying and paying the individual
owner a compensation for the losses incurred due to
the acquisition.
However, the 1894 act had many major problems in
the following aspects:
Method of fixing monetary compensations.
No consideration for rehabilitation.
No provision for dialogue with the affected people.
Total silence about project affected landless people
Vague meaning of public purpose.
Thus we can say that the 1894 act suited only their
colonial interests and lacks humanitarian touch.
Ironically, this was the law in force till 2013.

Right To Fair Compensation and

Transparency in Land Acquisition,
Rehabilitation and Resettlement Act 2011
& 2013 .

Providing fair compensation to the affected.

Make adequate arrangements and provide
necessary
support
for
rehabilitation
and
resettlement of the affected.
Ensure that the affected be in a improved position
of living post acquisition.
Also the Act does not permit the acquisition of
multi-crop irrigated area unless it is the only
alternative for an important project. And in such
circumstances, a cultivable waste land will be
acquired by the government and shall be
developed for the same agricultural purpose.
But recently key amends were proposed in the
above law by the NDA government.

But why propose amends to a law that is already

legitimate in most aspects?...
The country, as well known has been struggling to
shake itself off of the following problems:
1. Unemployment.
2. Farmer suicides.
3. Lack of infrastructure in rural areas.
4. Poor standards of living of lower sections.
5. Lack of power supply, transport infrastructure and
water to most rural areas.
6. Quality of national defense and security.
7. Lack
of
multi-skilled
labor
and
excessive
dependence on agriculture resulting in low national
income.
8. Lack of more Indian made goods in global market.

Amendments to the Act by P.M

Narendra Modis Govt.
The current NDA government has brought up some key
changes to the existing LAB.
Key changes affecting the farmers:
1. Consent clause: The first provision of sub-section 2 of
section 2 of the UPA version of the act has a requirement for
the prior consent of at least 80% of those affected families
before acquiring land. And for Public-private-partnerships
(PPPs) it is 70% of those affected families.
Change: The NDA government proposes that for projects
relating to (i) National security or defense, (ii) Rural
infrastructure including electrification, (iii) Affordable
housing for poor people, (iv) Industrial corridors, (v) Social
infrastructure and PPP projects where government holds
the land, there is no need to obtain any prior consent.

2.Compensation clause: Thirteen Acts of Parliament like the

Railways Act, the Electricity Act, the Atomic Energy Act, which
provided for land acquisition, were put in the Fourth Schedule of
the Act, with such exceptions or modifications that do not reduce
the compensation or dilute the provisions of this Act". Which
means, with a notification, land acquired for the above 13 Acts,
the new increased compensation clause will not apply.
Change: The NDA amendment has removed the aforementioned
provision (underlined). It is clear that it ensures that even if the
land is acquired under the above 13 crucial Acts, the farmers will
get the new, increased compensation at four times the market
rate.
And unless the full compensation has been paid, the land
cannot be taken into acquisition.
If at all that land is sold to a third party and land value is
increased, 40 per cent share is to be given to the farmer.
3. Punishment: Bureaucrats will now be punished if they are
found to be violating the laws mentioned in the act. Interferences
of the bureaucrats make it difficult for poor illiterate farmers to
fight for their land rights. The amendment to the act has this
clause of punishing the bureaucrats which would ensure
maintenance of proper law and order and justice to farmers.

Other changes and adjustments.

Removal of exemption from consent clause
extended earlier to five sectors has been taken
away from social infrastructure projects under PPP
model. SIA will be conducted for such projects also.
Acquisition to be of bare minimum land.
Survey to be undertaken of wastelands.
States can create land banks of vacant land for
development projects.
Word 'private company' replaced with 'private
entity.
Time frame: The ordinance states that if the
possession of acquired land under Act 1984 is not
taken for reasons, then the new law will be applied.

Benefits of the amendment?

Most projects under these heads will be government led
or government inspired & belong to key infrastructure &
security areas that increase public good. For everything
else, the NDA law and UPA law are the same. There is no
special favor to business.
With over four lakh projects critical to employment
generation, rural infrastructure, national security,
manufacturing and industrial growth stuck in litigation for
years due to clauses like 75 per cent acceptance and
social impact assessment, it is not surprising that we are
far behind many small countries like Uganda, Kenya,
Ecuador and Bangladesh and are ranked 134 for ease of
doing business globally.
The law brings in 13 areas not covered by the UPA law
and landowners will now get high rates for compensation
for land acquired for coal & mining projects, metro
construction, nuclear projects, roads, etc.

Linear Projects.
Linear projects are point to point projects like
construction of highways, gas pipelines, water
pipe lines, electricity lines etc.
If a single farmer had to disagree with the giving
up of land which lies on the land required for such
projects, the whole project will come to a halt.
So it is indeed an ingenious move by the NDA by
removing the consent clause for such linear
projects.

 Investigations by researchers from the Cambridge

Universitys Department of Sociology and University
College Londons Department of Political Science has
found that rates of suicide are highest in areas with the
most debt-ridden farmers who are clinging to tiny
smallholdings (less than one hectare) and are trying to
grow cash crops such as cotton and coffee that are
highly susceptible to global price fluctuations.

 Agriculture contributes to 14% of the GDP and

60% of the population is involved in agricultural
activities. So the these 60% share the 14% GDP
resulting in low national income levels.
So, it is evident that there is a need for the shift of
such inefficient farmers to manufacturing and
services. There by, by giving up their land for four
times the market price, they can repay their
loans, fulfill their marriage responsibilities of their
children with an employment that guarantees
future income. Hence, resulting in lesser suicides.
Quite a bit of education about the bill is essential
in removing the fear and doubt from the farmers
and villagers. The opposition is taking this as an
advantage to further slow down the process and
force adjustments in the bill.

Conclusion
Its all about what we want for our fellow Indians.
We dont want to see sons/daughters of farmers
travelling hundreds of miles into cities looking for
jobs, living in slums, earning just enough for two
meals a day.
Take the example of our own states of AP and
Telangana. If all the water irrigation projects,
metro etc., were to be stuck in land acquisition
litigations, there would have been no growth.
India has no choice but to move in the direction of
growth. It is high time that we bridge the gap
between ultra rich and ultra poor.
For those states not resorting to such amends,
only history will judge their fate in this era of
competitive federalism.

THANK YOU