New Delhi, June 21, 2007: The group of ministers (GoM) looking into the keenly-awaited relief and rehabilitation (R&R) policy for oustees of industrial projects has turned into a divided house over the method of compensation for farmers.
The panel, which met here on Wednesday for the first time, was unable to reach a consensus over the crucial issue that has led to controversy over special economic zones (SEZs) and other major industrial projects.
Differences in perspective cropped up between GoM members over the method of compensation that developers should offer while acquiring land from farmers, government sources said. Finance minister P Chidambaram wanted to know why the policy should not continue the existing method of compensation, which is a one-time payment, they added.
The finance minister’s query came up during an hour-long presentation on the policy by the rural development ministry. In its draft, the ministry has proposed compensation methods that are multi-choice, but also sustained over a period of time in terms of benefits accruing to farmers and others whose land is acquired for the development of SEZ. These include employment in the project to stake-holding in companies.
“Questions were raised over the proposals made by the ministry in the policy. I don’t think these can be dubbed differences at this stage. But yes, there were doubts over whether industry would perceive such provisions, which are not a one-time settlement, as a deterrent or speed-breaker to their time-bound SEZ development plans,” sources acknowledged.
In the event, compensation is the issue that is likely to take centre-stage in the first week of July, when the GoM’s next meeting is scheduled. Compensation proposals made by the rural development ministry in the draft policy are backed strongly by farm lobbies such as the Bharatiya Kisan Union (BKU) and Shetkari Sangathana.
At present, the government pays a one-time compensation to landowners, including farmers, when it acquires land for development projects under the current Land Acquisition Act. The new R&R policy also aims at nullifying the government’s role in land acquisition for development projects.
Sources said members at the GoM had also raised questions over states being legally bound to enforce the compensation policy coined by the Centre. With R&R being in the concurrent list of subjects, it is not clear if states may challenge the policy modification.
In November last year, a month after the government unrolled its draft of the National Policy on Relief and Rehabilitation, the rural development ministry decided to make the final version legally enforceable. In other words, the blueprint for states to follow for all projects leading to ‘involuntary displacement’ of people can then be challenged in court, if violated.
Leave a reply