The Draft Land Acquisition and Rehabilitation and Resettlement Bill (LARR), 2011 – An Overview

1. The Draft Land Acquisition and Rehabilitation and Resettlement Bill (LARR), 2011 –An Overview Ministry of Rural DevelopmentGovernment of India

2. Agenda • Why a New Law? • Why a Combined Law? • Scope of LARR, 2011 • Salient Features of the Draft Bill • Scope of the Bill • Definition of ‘Public Purpose’ • Urgency Clause • Definition of ‘Affected Family’ • Definition of ‘Land’ • Safeguarding Food Security • Minimum Compensation for Land • Minimum R&R Entitlements • Infrastructural Amenities under R&R • Retrospective Effect • Compliance with Other Laws • Process Flow • Institutional Structure • Safeguards against indiscriminate acquisition • Transparency Provisions • Penalties • Awards • Timelines • Special provision for States • Impact on existing legislations

3. Why a New Law • Public Concern • Heightened public concern on Land Acquisition issues • Absence of a national law to provide for the rehabilitation & resettlement and compensation for loss of livelihoods • Outdated Law • While multiple amendments have been made to the Original Act, the principal law continues to be the same i.e. the Land Acquisition Act of 1894 • Need for Balance • Addressing concerns of farmers and those whose livelihoods are dependent on the land being acquired • While facilitating land acquisition for industrialisation, infrastructure and urbanisation

4. Why a Combined Law • Land Acquisition and Rehabilitation & Resettlement need to be seen necessarily as two sides of the same coin • Rehabilitation and Resettlement must always, in each instance, necessarily follow upon acquisition of land • Not combining the two – R&R and land acquisition – within one law, risks neglect of R&R. This has, indeed, been the experience thus far • This is the first National/ Central Law on the subject of Rehabilitation & Resettlement of families affected and displaced as a result of land acquisition

5. Scope of LARR, 2011 • Both LA and R&R Provisions will apply when: • Government acquires land for its own use, hold and control • Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purpose (including PPP projects but other than state or national highway projects) • Government acquires land for immediate and declared use by private companies for public purpose • Note I: Public purpose for 2. & 3. above, once stated, cannot be changed • Note II: Land Acquisition under 2. & 3. above can take place provided 80% of the project affected families give prior informed consent to the proposed acquisition. • Only R&R provisions will apply when: • Private companies buy land for a project, more than 100 acres in rural areas, or more than 50 acres in urban areas Only LA provisions will apply to the area to be acquired but R&R provisions will apply to the entire project area even when: • Private company approaches Government for partial acquisition for public purpose

6. Salient Features of the Draft BillDefinition of Public Purpose • Land for strategic purposes relating to armed forces of the Union, national security or defence, police, safety of the people; • Land for railways, highways, ports, power and irrigation purposes for use by Government and public sector companies or corporations; • Land for the project affected people • Land for Planned development or improvement of village or urban sites or for residential purpose to weaker sections in rural or urban areas; • Land for Government administered educational, agricultural, health and research schemes or institutions; • Land for persons residing in areas affected by natural calamities • --------------------------------------------------------------------------------------- • Land acquired by the Government for - • (I) use by government itself for purposes other than those covered under (1), (2), (3), (4), (5) and (6) above, • (II) public sector companies,; or • (III) PPP projects for the production of public goods or the provision of public services; • 8. Land for private companies for the production of public goods or provision of public services; • Under (7) and (8), consent of at least 80% of the project affected families shall be obtained through a prior informed process

7. Salient Features of the Draft BillUrgency Clause • The Urgency Clause can only be invoked in the following cases: • National defense and security purposes • R&R needs in the event of emergencies or natural calamities

8. Salient Features of the Draft BillDefinition of ‘Affected Families’ • Land Owners: • Family or company whose land/other immovable properties have been acquired; • Those who are assigned land by the Governments under various schemes; • Right holders under the Forest Rights Act, 2006 • Livelihood Losers: • Over the last three years, a family whose livelihood is primarily dependent on the land being acquired, including agriculture labourers, tenants or sharecroppers • Over the last three years, families which are dependent on forests or waterbodies for their livelihoods when these are acquired; including forest gatherers, hunters, fisher folk and boatmen • Over the last three years, any family whose livelihood is dependent primarily on the land being acquired in the urban areas or any family who is residing on the land being acquired in the urban areas

9. Salient Features of the Draft BillDefinition of ‘Land’ • “Land includes benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth.”

10. Salient Features of the Draft BillSafeguarding Food Security • Multi-crop irrigated land will not be acquired except as a demonstrably last resort measure, which in no case should lead to acquisition of more than 5 percent of multi-crop irrigated area in a district. • Wherever multi crop irrigated land is acquired an equivalent area of culturable wasteland shall be developed for agricultural purposes. • 3. In districts where net sown area is less than fifty per cent of total geographical area, no more than ten per cent of the net sown area of the district may be cumulatively acquired under all land acquisition projects put together in that district. • 1. and 2. above shall not apply in the case of linear projects (such as Railways, highways, Major District Roads, power lines, and irrigation canals)

11. Salient Features of the Draft BillMinimum Compensation for Land • A Comprehensive Compensation Package (Schedule I) • Market value of the land: • the minimum land value, if any, specified in the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is situated; or • the average of the sale price for similar type of land situated in the immediate areas adjoining the land being acquired, ascertained from fifty per cent of the sale deeds registered during the preceding three years, where higher price has been paid; or • whichever is higher: • PROVIDED THAT THE MARKET VALUE SO CALCULATED FOR RURAL AREAS SHALL BE MULTIPLIED BY AT LEAST A FACTOR OF TWO. THIS WILL BE SPECIFIED IN SCHEDULE I. (AND NOT IN THE ACT PER SE). • 2. Value of the assets attached to land: Building/Trees/Wells/Crop etc as valued by relevant govt. authority; • Total compensation = 1+2 • 3. Solatium: 100% of total compensation • 4. Where land is acquired for urbanisation, 20% of the developed land will be reserved and offered to land owning project affected families, in proportion to their land acquired and at a price equal to cost of acquisition and the cost of development. In case the project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it • 5. The Company for whom land is being acquired may offer shares limited to 25% of the Compensation amount . In case the project affected family wishes to avail of this offer, an equivalent amount will be deducted from the land acquisition compensation package payable to it.

12. Salient Features of the Draft Bill Minimum R&R Entitlements • A Comprehensive R&R Package (Schedule II) • For Land Owners: • Subsistence allowance at Rs. 3000 per month per family for 12 months; • The affected families shall be entitled to: • (a) Where jobs are created through the project, mandatory employment for one member per affected family • or • (b) Rupees 5 lakhs per family; • or • (c)Rupees 2000 per month per family as annuity for 20 years, with appropriate index for inflation; • The option of availing (a) or (b) or (c) shall be that of the affected family • 3. If a house is lost in rural areas, a constructed house shall be provided as per the Indira Awas Yojana specifications. If a house is lost in urban areas, a constructed house shall be provided, which will be not less than 50 sq mts in plinth area. • In either case the equivalent cost of the house may also be provided in lieu of the house as per the preference of the project affected family; • 4. One acre of land to each family in the command area, if land is acquired for an irrigation project; • 5. Rs 50,000 for transportation; • 6. A one-time ‘Resettlement Allowance’ of Rs 50,000;

13. Salient Features of the Draft BillMinimum R&R Entitlements • A Comprehensive R&R Package (Schedule II) • For Livelihood losers (including landless): • Subsistence allowance at Rs. 3000 per month per family for 12 months; • 2. The affected families shall be entitled to: • (a) Mandatory employment for one member per affected family where jobs are created through the project, • or • (b) Rupees 5 lakhs per family; • or • (c) Rupees 2000 per month per family as annuity for 20 years, with appropriate index for inflation shall be provided; • This choice of (a) or (b) or (c) shall be that of the affected family • 3. If a house is lost in rural areas, a constructed house shall be provided as per the Indira Awas Yojana specifications. If a house is lost in urban areas, a constructed house shall be provided, which will be not less than 50 sq mts in plinth area. • In either case the equivalent cost of the house may also be provided in lieu of the house as per the preference of the project affected family;   • This benefit will also extend to those who are homeless. • 4.A one-time ‘Resettlement Allowance’ of Rs 50,000; • 5. Rs 50,000 for transportation;

14. Salient Features of the Draft BillSpecial Provisions for SCs/STs • In addition to the R&R package, SC/ST families will be entitled to the following additional benefits: (Schedule II) • 2.5 acres of land or extent of land lost to each family in every project, In case of irrigation project 1 acre in the command area; • One time financial assistance of Rs. 50,000 per family; • Families settled outside the district shall be entitled to an additional 25% R&R benefits; • Payment of one third of the compensation amount at very outset; • Preference in relocation and resettlement in area in same compact block; • Free land for community and social gatherings; • In case of displacement, a Development Plan is to be prepared. • 8. Continuation of reservation and other Schedule V and Schedule VI area benefits from displaced area to resettlement area.

15. Salient Features of the Draft BillInfrastructural Amenities under R&R • (Schedule III) • 25 infrastructural amenities to be provided in the Resettlement area, including: • Schools and playgrounds; • Health Centres; • Roads and electric connections; • Assured sources of safe drinking water for each family; • Panchayat Ghars; • Anganwadi’s providing child and mother supplemental nutritional services; • Places of worship and burial and/or cremation ground; • Village level Post Offices, as appropriate, with facilities for opening saving accounts; • Fair price shops and seed-cum-fertilizer storage facilities

16. Salient Features of the Draft BillR&R in case of Private Purchase of Land • 1. Where a private company is purchasing land for a project which is more than 100 acres in rural areas or more than 50 acres in urban areas through private negotiations, the Company shall file an application with the District Collector notifying him of: • (a) Intent to Acquire; • (b) Purpose of Purchase; • (c) Particulars of lands to be purchased • 2. Collector shall refer the matter to the Commissioner R&R for the satisfaction of all relevant provisions under this Act related to R&R • Based upon the R&R Scheme approved by the Commissioner R&R, the Collector shall pass individual awards covering R&R entitlements

17. Salient Features of the Draft BillRetrospective Effect Clause • This Bill proposes that LARR 2011 will apply to all cases of Land Acquisition where before date of commencement of LARR Act 2011 • either: • Award has not been made under LA Act 1894; • or • (b) Possession of land has not been taken • In both these cases, LA proceedings under 1894 Act will be considered lapsed upon commencement of LARR Act 2011.

18. Salient Features of the Draft BillCompliance with other Laws • The Provisions of the New Law shall be fully compliant with other laws such as: • The Panchayats (Extension to the Scheduled Areas) Act, 1996; • The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006; • Land Transfer Regulations in Schedule V Areas.

19. Salient Features of the Draft BillProcess Flow Proposal is Received by the Appropriate Government Social Impact Assessment (SIA) Conducted by Appropriate Government • SIA to be examined by independent Expert Group Pre-Notifica-tion • Collector submits report on status of alternative sites Legitimacy of ‘Public Purpose’ and SIA is approved by CS Committee (if above 100 acres) or by a Delegated Committee if below 100 acres) • Consent of 80% of Affected sought Publication of Preliminary Notification to acquire Notifica-tion Finalization of R&R Scheme (within 6 months of PN) Public Hearing Draft Declaration& R&R Scheme published Awards

20. Salient Features of the Draft BillInstitutional Structure National Monitoring Committee • Oversight at Central Level for all projects Centre State LA&RR Authority • Dispute Resolution for State Projects State Chief Secy Committee • Determine whether projects are for public purpose • Overall Admin for LA&RR in State State Commissioner, RR • Overall coordination and implementation District Collector Project-level Administrator, RR • Admin Project-level RR • Oversight (Elected reps, civil society, line agencies) RR Committee

21. Salient Features of the Draft BillSafeguards against indiscriminate acquisition • Social Impact Assessment made mandatory • Chief Secretary Committee/ Delegated Committee to approve ‘public purpose’ and approve the SIA report if area is above 100 acres (Otherwise to be reviewed by Delegated Committee so designated) • Draft Notification to include: • Summary of SIA • Particulars of Administrator for R&R who prepares R&R scheme • Draft Declaration to include: • Summary of R&R package • No Change of Purpose: No change from the purposes specified in the Land Use Plan submitted at the time of land acquisition will be allowed. • Change of Ownership: No change of ownership without specific permission of Appropriate Government is allowed; • Land not Used: Land that is not used within 10 years in accordance with the purposes for which it was acquired at the time of acquisition, shall be transferred to the State Government’s Land Bank. • Sharing appreciated value: Upon every transfer of land without development, 20% of the appreciated land value shall be mandatorily shared with the original owner whose land has been acquired

22. Salient Features of the Draft BillTransparency Provisions • Social Impact Assessment • Gram Sabha to be consulted • Summary of SIA notified along with Draft Notification • SIA document made available for public scrutiny • R&R Scheme • Summary notified along with Draft declaration • Made available for public scrutiny • Individual Awards passed • Public Disclosure • All documents mandatorily to be made available in the public domain and on the website

23. Salient Features of the Draft BillPenalties • Stringent and Comprehensive Penalties Regime for Companies and Government: • Punishment for false information, mala fide action, etc. • Penalty for contravention of provisions of Act.

24. Salient Features of the Draft BillAwards • Collector passes 2 types of Awards: • 1. Award for Land Acquisition • Award made in respect of every affected family whose land is being acquired and containing details of LA compensation as listed in Schedule I; • 2. Award for R&R • Award made in respect of every affected family, regardless of whether they may be losing land or not, containing details of R&R entitlements as listed in Schedule II.

25. Salient Features of the Draft BillTimelines • Compensation will be given within a period of three months from the date of the award; • Monetary R&R entitlements will be provided within a period of six months from the date of the award; • Infrastructure R&R entitlements will be provided within a period of eighteen months from the date of the award; • No involuntary displacement will take place without completion of R&R; • In irrigation or hydel projects, R&R shall be completed six months prior to submergence

26. Salient Features of the Draft BillSpecial Provisions for the States • The LARR Bill 2011 allows all States to enact any law or policy related to LA&RR, provided the same does not contradict or reduce the entitlements under LARR 2011. • Any State can therefore confer higher compensation or make provisions for rehabilitation and resettlement which enhance or go beyond those provided for under the Bill • If any existing State policy or law provides for entitlements that are greater than those listed in the LARR Bill then the State is free to continue with those. • The proportion in which States can acquire land for private parties has been left entirely to the discretion of the States i.e. States can step in and acquire land for private parties after any percentage of total acquisition has taken place. 5. The only conditions are that at the very least • the land acquisition provisions of LARR 2011 will apply to that part of the land that is acquired by the State Government and • the R&R provisions of LARR 2011 will apply to all of the land already purchased by the private party as well as the remaining part of the land to be acquired by the State Government. • .

27. Salient Features of the Draft BillImpact on Existing Legislations • There are 16 Acts of the Central Government in force that allow for land acquisition. These are listed in schedule IV of the Act (and include legislations relating to National Defence, National Highways, Railways etc). • The provisions of LARR 2011 can be applied to the existing 16 Acts by a notification of the Central Government. • The provisions of the LARR Bill 2011 are in addition to and not in derogation of any other Central or State law in force.