Citizens’ Research Collective on SEZ

New Delhi, October 12, 2007: The Union Government on Thursday approved the much-awaited National Policy on Rehabilitation and Resettlement, 2007, giving a bouquet of bonanza to the families affected by land acquisition. The policy, that would replace the existing policy of 2003, was cleared by the Union Cabinet meeting chaired by Prime Minister Manmohan Singh.

While the basic tenet of the policy is rehabilitation before displacement, the affected families would be given adequate compensation package in the form of land, jobs and share in the industry concerned. “Full compensation would be given to families before the possession is taken by the Government,” Information and Broadcasting Minister Priya Ranjan Dasmunsi told mediapersons after the Cabinet meeting. As per the policy, along with landholders, compensation would also be provided to the tenants and agriculture labourers who are active in the area for at least three years.

While total land may be acquired by the State or the Union Government for strategic or public purposes, a special category for land acquisition has been carved out for “persons who want land acquisition for activities useful to general public”. This category includes private industries and corporate firms. For corporates or private industries, the Government would acquire 30 per cent of land after they had purchased 70 per cent directly from the farmers themselves. In this case, the compensation package would apply for only 30 per cent of farmers whose land would be acquired by the Government. While the land acquisition by the Government would be made on the highest price of last three years in commercial or industrial category, an extra 60 per cent solatium would be paid.

In case of urgent acquisition, a solatium of 75 per cent would be applicable. If the Government transfers the acquired land to industrialist or any private party at higher than the price on which it was acquired, 80 per cent of the difference of extra money left after development of the land would also be given to the farmers concerned.

If the land acquired is not used by the party concerned within five years, the land would revert back to the Government. This condition is tagged to stop the misuse by the land mafia. Under the new R&R policy, the land would be acquired only after making the social impact assessment in case of displacement of 400 or more families of the plains or 200 or more families of the tribals. The provision also mentions consultation with the respective gram sabhas for acquisition.

In the case of displacement of 200 or more tribal people, the Government would come out with a Tribal Development Plan before the acquisition. The companies would have to give preference in jobs to the displaced and for that they would make required skill development. Also preference would be given to the group of local labourers for contract in activities related to construction and delivery of goods.

The new policy would allow those parting with their land opportunity to take up to 20 per cent of the amount in the form of shares if the acquiring entity is authorised to issue these instruments. With prior approval of the Government, this proportion can be as high as 50 per cent of the rehabilitation grant and compensation amount.

Source: Pioneer