Why Land Acquisition Really Matters? And What Could Be Done About It?
India is
growing at over 8% annually. To fuel this growth consistent supply of
huge amount of resources are required. Whether it's fuel, minerals
or land, everything is required at a scale that has never been
experienced before. But there's a common problem that is holding all
these from being input to the development cycle and that is land. The
huge population has made the world's 7th largest country a
'People Surplus, Land Deficit Country'. Adding to the problem is
years of inefficient handling of land.
But profit sharing can be tricky and difficult to
implement, since locals lack resources to effectively audit the
books of mining companies and thus probability of frauds will be high.
Also the profits from mining will come slowly after the projects go
on-stream. Also compensation in the form of monthly allowance, profit sharing, taxes and one time allowances may render the projects unviable. To solve this, a
'Rehabilitation Authority' should be set up which would be the sole
organization responsible for rehabilitation and resettlement of
displaced people and will work on non-profit basis. The organization will be responsible for facilitating all the acquisition in future from its own corpus, which will be funded by profit sharing and one time compensation from corporates who acquire land.
Don't Take My Land |
Since early
2000's, India's frantic pace of growth has ensured that the land and
their owners are exploited to a huge extent. Earlier unawareness
among farmers & their hope to benefit has largely ensured peaceful industrialization. But after years of experience & feeling of being left out they now consider industrialization a monster, which just gobble up their land. They feel that the sole beneficiaries of the whole process are corporates, who in tandem with local government officials acquire much more land
than required. A waste of a precious resource that must be stopped, immediately. The proposed 'Land Acquisition,
Rehabilitation and Resettlement(LARR) Act, 2011' is a good step in
that direction and I am sure that it will induce some discipline among
the buyers.
The bill
proposes that for every acquisition of more than 100 acres of land, the consent of atleast 80% locals should be taken. Industry fears
that this could make 'Land Acquisition' a tough and slow process. But
I think once completed, projects can be executed at much faster pace
with less probability of people protesting thereafter. Also the
compensation clause will increase the cost of projects for sure but
it will reduce the tendency of businesses to acquire land in much
larger quantum than required and force them to use it efficiently.
However there should be one modification in the bill, instead of high
one time payment monthly compensation amount should be increased from
Rs2000/acre/month. As experienced till now compensation beneficiaries
spend lavishly in initial years and due to lack of any skills other
than farming, they face a tough question for survival once that
compensation finishes. The increased regular compensation will ensure
that those displaced are assured of regular income. In addition
guaranteed job to a member of each displaced family will make them
live a respectful life.
Share It, Don't Capture It |
There are more such problems with the proposed bill, which has to be looked into. However it's clear that whatever government do, it has to do it fast and has to do it right, it can't experiment on that count or else India would risk losing it's competitive and demographic edge.