Land Acquisition Policy of India 

Syllabus: GS2/Governance; GS3/Economy

In News

• Cabinet Secretary T.V. Somanathan said that Land acquisition continues to be a major obstacle to infrastructure development in India.

Historical Background 

• The British standardised land revenue collection by introducing different settlement systems to strengthen their control in India.
• The three main land tenure systems were in place:
  • Zamindari System: Under it, land was owned by landlords (zamindars) who paid land revenue to the state, while cultivation was done by tenants under their control.
    • There were two forms of this system: the permanent settlement, where land revenue was fixed permanently and practiced in regions like Bengal, Orissa, Banaras, and parts of Madras; and a revised settlement system, where revenue was periodically reassessed, prevalent in areas such as Uttar Pradesh, Punjab, and the Central Provinces.
  • Ryotwari system: Under it , cultivators (ryots) owned and tilled their land and paid land revenue directly to the state.
    • Revenue was assessed individually for each holding and settlements were temporary. 
    • It was Introduced in 1792 by Captain Read and Thomas Munro in Bara Mahal and was later extended to regions such as Bombay, Assam, and Bihar.
  • In the mahalwari system, land was collectively owned by the village community but individually cultivated.
    • The community was responsible for collecting and paying land revenue to the state. This system, based on divisions called mahals, was mainly practiced in Punjab, Agra, and Awadh.

Current status of Land acquisition policy of India 

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 replaced the colonial-era Land Acquisition Act of 1894 to provide a more transparent and humane framework for land acquisition. 
• It is effective from January 1, 2014, and amended in 2015.
• It establishes a modern framework for land acquisition, guaranteeing fair compensation and rehabilitation for families affected by such acquisitions.

Key Features 

• It focuses on fair compensation, consent, and transparency in land acquisition.
• It ensures Rehabilitation and Resettlement (R&R), including housing, livelihood support, employment or annuity, and infrastructure in resettlement areas.
• Landowners receive compensation of twice the market value in urban areas and four times in rural areas.
  • Consent is mandatory—70% for PPP projects and 80% for private projects.
• Acquisition of irrigated multi-cropped land is restricted, and if acquired, equivalent wasteland must be developed.
• A Social Impact Assessment (SIA) is compulsory to assess social, economic, and environmental impacts. 
• “Public purpose” is clearly defined to prevent misuse, and unused land must be returned or put in a land bank within five years.
  • While defence, railways, and atomic energy projects are exempt from certain procedures, compensation and R&R still apply. 
• The Act emphasizes transparency, public hearings, and provides additional safeguards for SCs and STs.
• Disputes can be taken to the Land Acquisition, Rehabilitation, and Resettlement (LARR) Authority.

Challenges and Concerns 

• The Act faces several challenges in its implementation that make full implementation of the Act difficult.
• Some of the challenges are:
  • Procedural requirements often delay land acquisition for development projects
    • Multiple clearances (forest, wildlife, environment) add to delays.
    • Around 35% of infrastructure project issues stem from land acquisition hurdles.
  • Compensation costs can put a strain on both public and private project budgets
  • Balancing development needs with social justice remains a contentious issue
    • There are concerns over displacement, inadequate rehabilitation, and loss of livelihood.
  • Delays increase project costs, affecting national infrastructure targets.

Conclusion and Way Forward 

• India’s 2013 Land Acquisition Act promotes fairness and transparency, but implementation delays and disputes hinder infrastructure development.
• Therefore Improving digital land records, speeding up clearances, and ensuring proper rehabilitation are essential. 
• While the government does not plan to change the law, more efficient execution is urgently needed.

Source :TH