The Union Cabinet on Thursday approved the National Policy on Rehabilitation and Resettlement, 2007 which not only provides substantial benefits to farmers, including a continuous source of income, for land acquired for industrial projects but also make it simpler for corporates to acquire land with state help.The policy provides for land acquisition up to 30 per cent by states to give a crucial contiguity to developers, be those of Special Economic Zones or industrial projects.“The policy of the previous NDA government was disastrous as it did not take into account the interest of farmers,”Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.A legislation will be brought on the lines of this policy. The Cabinet also decided to amend the Land Acquisition Act of 1894 to suitably define ‘public purpose’ to facilitate land acquisition for industrial purposes.Given the row over protests against land acquisition in Singur and Nandigram, the policy has followed the principle of “rehabilitation before displacement”. It provides for an “order of magnitude” jump in compensation for land acquired by the government, fixed at the average rate of 50 per cent of the highest land sale deeds in the last three years or the market rate decided by the state governments, whichever may be higher. In fact, the state governments will have to take into account the intended use of land acquired before fixing the market value of the land. Project-affected families (PAFs) will also get 60 per cent solatium, up from the earlier 30 per cent. Under the policy, PAFs will be offered land-for-land, to the extent government land is available in resettlement areas; preference for employment in the project to at least one person from each nuclear family, subject to availability of vacancies and suitability of the affected person; training and capacity-building for suitable jobs, self-employment; scholarships for education of eligible persons from affected families; preference to groups of cooperatives of affected persons in the allotment of contracts and other economic opportunities in and around the project site; wage employment to affected persons in project construction work; housing benefits, including houses to the landless affected families in both rural and urban areas. The policy also proposes that landowners will have an option of either opting for one time monetary compensation or a mix of compensation and equity. In case of PAFs opting for equity, the policy allows a maximum of 50 per cent of the compensation as equity in the project and the remaining as cash. Keeping in view the land required for private industrial projects, in addition to land required for strategic and public infrastructure purposes, the amendment to land acquisition rules will suitably define public purpose, allowing state governments to acquire land for persons, which includes a private company, association or a body of individuals, provided it is “useful to the general public” ( for example, employment generation) but will be restricted to cases where at least 70 per cent of land has already been purchased by developers. This means that the government can acquire a maximum of 30 per cent of land for private industries to facilitate project development in cases of hold-outs by a few. To check any speculative land transaction, the amendment proposes that the land acquired by the government will have to revert to the government in case the proposed project does not take off in five years after the acquisition. In case of sale after the project has taken off, the amendment proposes that 80 per cent of the net profit earned during the sale should go to the original landowner.The policy makes it mandatory to conduct a Social Impact Assessment (SIA) in case of displacement of more than 400 families in plain areas and 200 in case of tribal, hilly and other scheduled areas. It is mandatory to consult gram sabhas. To assist quick disposal of cases involving compensation disputes, the policy has decided to introduce a Land Acquisition Compensation Settlement Authority, removed from the normal civil courts, at the local level for speedy disposal of cases to facilitate projects. But the aggrieved can appeal to a High Court and above against the settlement decided by this Authority. Under the policy, there will be a standing relief and rehabilitation committee at the district level and an ombudsman at the state level to monitor rehabilitation under any project. For effective monitoring of the implementation of resettlement plans, the government will constitute a National Monitoring Committee and a National Monitoring Cell with which state governments will have to share information.
