Land acquisition is a crucial process through which the government acquires private land for public purposes. These purposes include infrastructure development, housing projects, industrial corridors, and social infrastructure. In India, this process has been particularly sensitive due to the conflict between developmental goals and the rights of landowners, farmers, and local communities.
As India pursues substantial infrastructure and industrial growth, land acquisition plays a foundational role in facilitating economic expansion. However, it also remains one of the most contested areas of public policy, raising significant concerns among various stakeholders.
The legal framework for land acquisition in India is primarily governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR Act). This legislation replaced the colonial-era Land Acquisition Act of 1894 and aims to make the acquisition process more humane, transparent, and inclusive.
Key features of the LARR Act include:
Under the LARR Act, compensation is calculated based on the market value, which includes additional payments to acknowledge the loss faced by landowners. Rehabilitation measures are also mandated, such as housing options, employment support, and essential infrastructure for displaced families. These provisions aim to rectify historical grievances related to inadequate compensation and support.
Despite its progressive intent, the land acquisition process remains slow and complex. Social Impact Assessments often take a considerable amount of time, and fulfilling consent requirements can be challenging, especially in regions with fragmented landholdings. Frequent disputes over land valuation lead to extensive litigation, compounding the delays.
Additionally, coordination issues between Central ministries, State governments, and local administrations further complicate acquisition timelines. Since land is a State subject, variations in administrative capacities and political priorities across states exacerbate these implementation challenges.
Large infrastructure projects, such as highways, railways, and power plants, often face delays due to unresolved land acquisition issues. These delays can result in significant cost overruns and project timelines being extended, making land acquisition a structural bottleneck in India's infrastructure-led growth strategy.
Recent reviews under the PRAGATI (Pro-Active Governance and Timely Implementation) mechanism spotlight land acquisition as the leading cause of project delays, accounting for nearly 35% of unresolved issues in major infrastructure projects.
The government has clarified that there are no proposals to amend or dilute the existing land acquisition law. Instead, efforts are focused on enhancing administrative coordination, timely resolution of disputes, and strengthening cooperation between the Centre and States. Through the PRAGATI mechanism, unresolved issues are escalated for quicker decision-making and improved accountability.
Recent evaluations indicate that while strong legal protections for landowners are essential, effective administration, early stakeholder engagement, and cooperative federalism are equally critical. Rather than pursuing legislative changes, the focus should be on improving implementation, resolving disputes promptly, and fostering institutional coordination. For India to achieve its infrastructure and development objectives, reforms in land acquisition must prioritize execution efficiency while balancing developmental needs with social justice.
Q1. What is the primary purpose of land acquisition in India?
Answer: The primary purpose of land acquisition in India is to obtain private land for public use, such as infrastructure development, housing, and industrial projects, aiming to foster economic growth while balancing landowners' rights.
Q2. What is the LARR Act?
Answer: The LARR Act, or the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, governs land acquisition in India, focusing on fair compensation and the rehabilitation of displaced families.
Q3. How is compensation calculated under the LARR Act?
Answer: Compensation under the LARR Act is calculated based on the market value of the land, with additional provisions for rural areas and solatium for displaced individuals to ensure fair and adequate compensation.
Q4. What challenges does land acquisition face in India?
Answer: Land acquisition in India faces challenges such as lengthy procedures, disputes over valuation, difficulties in obtaining consent, and coordination issues between different government levels, leading to project delays.
Q5. What role does the PRAGATI mechanism play in land acquisition?
Answer: The PRAGATI mechanism facilitates the monitoring and resolution of issues in major infrastructure projects, including land acquisition challenges, enabling faster decision-making and improving overall project implementation.
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