UTTAR PRADESH
POWER CONCLAVE, 2011
“LAND ACQUISITION AND R&R ISSUES”
LALITPUR POWER GEN CO. LTD.
Bajaj Group of Companies
23.12.11
Dr. A V Singh
1
CONTENTS
 About us
 Our contribution in Power generation
o
Renewable and Conventional
 Emerging significant factors
 Site selection criteria
 Assessment of land acquisition for Coal Based Thermal
Power Plant
 Options & procedures to procure land
 Land acquisition & constitutional framework
a.
b.
c.
Land Acquisition Act, 1894
National R&R Policy
Land Acquisition Bill 2011 (Draft)
 Constraints in land acquisition in India
 Courts intervention
 Recommendations
2
ABOUT THE COMPANY




Founded in 1931 by Late Shri
Jamnalal
Bajaj,
a
businessman, confidante and
adopted fifth son of Mahatma
Gandhi.
In Sugar manufacturing &
Green fuel
No. 1 in Asia
Amongst the top 5 globally
COMPANY'S VISION
To be the leader in our chosen business area,
create an organization that all our constituents are
proud to be associated with, set benchmarks that
will become the standard for others to emulate and
through ethical business practices create wealth
for our stakeholders.
4
COMPANY'S MISSION
To transform bajaj hindusthan ltd. into a dynamic
and vibrant business entity where growth is an ethos
and the long-term value creation for our stakeholders
is the paramount objective.
5
CONTRIBUTION OF BAJAJ GROUP IN
POWER GENERATION
Biomass (Bagasse)
6
CONTRIBUTION OF BAJAJ GROUP IN
POWER GENERATION
Coal Based Thermal Power Projects
7
EMERGING SIGNIFICANT FACTORS

New Environmental Law
• Involving community increasingly
• Public hearing etc.

Pressures
• Public Interest Litigation (PIL) & Active Courts
• Growing consciousness among citizens
• Active NGO
• Court verdicts show a trend of favouring petitioners
• Preservation of environment on priority list of Courts
8
EMERGING SIGNIFICANT FACTORS

Strict Standards
Corporate Responsibility for Environmental Protection
• Zero discharge
• 100% utilization of Fly ash from the IVth Year of
operation
• Emission - 150 mg/NM3 : 50 mg/NM3
•
9
SITING CRITERIA
a) Ecologically and/or otherwise sensitive areas: at least 25 km.
b) Coastal Areas: at least ½ km. from high tide line.
c) Flood Plain of the Riverine System: at least ½ km.
d) Transport/Communication System: at least ½ km. from
highway and railway.
e) Major Settlements (3,00,000 population) : at least 25 km
from the projected growth boundary of the settlement
10
SITING CRITERIA
 Avoidance of prime agricultural & forest land conversion
 Minimum land but sufficient Green belt
 Gainful usage of treated waste water
 Enough space for solid waste
11
ASSESSEMENT OF LAND REQUIREMENT
FOR
COAL BASED THERMAL POWER PLANT
12
COMMITTEE TO WORKOUT THE THERMAL POWER
PLANT LAND REQUIREMENT

Central Electricity Authority (CEA) constituted a committee
comprises of following agencies;
NTPC (National Thermal Power Corporation)
• BHEL (Bharat Heavy Electricals Ltd.)
• TCE (Tata Consulting Engineers)
• CEA (Central Electricity Authority)
•
13
THE TERMS OF REFERENCE OF COMMITTEE

To work out the minimum land requirements for coal
based thermal power plants having capacities of 1000 MW,
2000 MW, 3000 MW & 4000 MW.

To develop layouts for the above thermal power plants (pithead and coastal-site).

To study layouts being followed in developed countries.

To give recommendations on the requirements of land
taking into consideration of above.
14
RECOMMENDATION OF COMMITTEE FOR
LAND RQUIREMENT
Pit head stations using Indian Coal
Source: CEA report on Land requirements
15
LAND ACQUISITION
OPTIONS TO PROCURE LAND

Acquisition through Govt. under
1894
Land Acquisition Act

Direct purchase from the land owners
16
LAND ACQUISITION
LAND ACQUISITION PROCEDURE
Private Land
o Similar to Acquisition of Govt. land
o Direct dealing and negotiation with land owners
o Information to Govt. for records
o Permission under section 154(UP Zamindari Abolition
& Land Reform Act,1950 - Restriction on transfer by a
bhumidhar)
Forest Land
o Permission needed
o Regional MoEF- >5 Ha and Central MoEF < 5 Ha land
17
LAND ACQUISITION & CONSTITUTIONAL FRAMEWORK

Land acquisition refers to the process by which Govt.
forcibly acquires private property for public purpose
without the consent of the land owner.

Originally the wishes of owners of property were totally
irrelevant but at present, the law tries to provide various
provisions for objection and alternative remedies in case
of inadequacy of compensation.
18
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
 English Law
 US Law
: “Law of compulsory Purchasing”
: “Power of Eminent Domain”
19
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
The Land Acquisition Act, 1894
Addresses the process of land acquisition in India & also
amended several times.
20
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
History Background (Cont……)
History of Land Acquisition Act



Regulation 1 of 1824, Bengal Code
British to acquire land for salt manufacture
Bombay Presidency, Act XXVIII, 1839
British to acquire land to the island of Bombay and
Colaba
1850 some of the provisions of regulation 1 of 1824 were
extended, with a view to confirm the land titles in Calcutta
that were acquired for Public purpose.
21
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
History Background (Cont….)
History of Land Acquisition Act
 India Act X of 1870 subsequently come into effect which
was further replaced by Land Acquisition Act 1894;
•

A completely self contained Act in order to purge some of the
flaws of Act X of 1870
The India Act XVIII, 1885
•
Acquisition of land in British India for mines & minerals.
Prior laws did not cover causes where resources were
situated under the land which Govt. sought to acquire. It also
include rules laid down in sections 7785 of the English
Railways clauses consolidation Act.

The Land Acquisition Act of 1894 was a comprehensive law
enacted in British India

“This Act of 1894 is the basis for Indian Government’s
current procedures for land acquisition for “Public
Purpose”
22
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
History Background
History of Land Acquisition Act
 The Land Acquisition Act of 1894 – reviewed by various
committee appointed by Govt. of India.

1967 – by resolution no. 6-6/67 to study, consult and
recommend principles to amend the 1894 Act.

1894 Act –Amended several times.
[

After Independence Indian Govt. adopted “Land
Acquisition Act – 1894” as a tool for Land Acquisition.
23
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK

Constitution of India
Provision under Article 19 (f) & Article – 31 : Right to
Property
• State confronted with right to property Article 14, 19 &
Article 31 as Court struck down various acts of state as being
ultra vires.
• Stoppage of development/growth etc.
•


Constitution (First) amendment Act, 1951 was enacted.
Article 31 (A) categorically states that no law which
provides for acquisition by the state of an estate can be
held void as being ultra vires Article 14 or Article 19.
It also provided for payment of compensation at a rate not
less than market value of the property.
24
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK

Land can be acquired by the State or the Central Govt. for
the purposes listed under State & Centre list respectively
unless the Central Govt. delegates the task to the State
Govt. under article 258(1) of the constitution.

“Constitutionality of various sections of the land
Acquisition Act has been considered as being violation of
Article 19 and 31 of the constitution as being confiscatory
in nature and it is sought to deprive appellants of their
land”.
25
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK

“Public Purpose”
Article 31(2) categorically states that a land can be
acquired by the State only for Public purpose.
General interest of community
Anything which is useful to the public purpose benefit or
conduces to same public advantage.
o Public purpose: Determining factor
o Consideration of hardships to the individuals can not out
weight the question of public demand.
o
o
26
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
Public Purpose

Section 3(f) of The Land Acquisition Act defines Public
purpose.

The Power to select the land is left to reasonable
discretion of the Govt. and Courts can not interfere in this
regard.
The provision of village-sites, or the extension, planned
development or improvement of existing village-sites.
The provision of land for town or rural planning


27
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
Public Purpose

The provision of land for planned development of land
from public funds in pursuance of any scheme or policy of
Government and subsequent disposal thereof in whole or
in part by lease, assignment or outright sale with the object
of securing further development as planned.

The provision of land for a corporation owned or
controlled by the State.

The provision of land for residential purposes to the poor
or landless or to persons residing in areas affected by
natural calamities, or to persons displaced or affected by
reason of the implementation of any scheme undertaken by
Government, any local authority or a corporation owned or
controlled by the State.
28
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
Public Purpose

The provision of land for carrying out any educational,
housing, health or slum clearance scheme sponsored by
Govt. or any such scheme, or with the prior approval of the
appropriate Govt. by a local authority, or a society
registered under the Societies Registration Act, 1860 (21 of
1860), or under any corresponding law for the time being
in force in a state, or a co-operative society within the
meaning of any law relating to co-operative societies for
the time being in force in any State.

The provision of land for any other scheme of development
sponsored by Government or with the prior approval of the
appropriate Government, by a local authority.

The provision of any premises or building for locating a
public office, but does not include acquisition of land for
companies.
29
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK
Public Purpose
It is not possible to give an exact and all-embracing definition
of public purpose. Public Purpose includes the following
aims;
 In which general interest of the community, or a section of
the community, as opposed to the particular interests of the
individuals, is directly or vitally concerned.
 Which would preserve or promote public health, comfort or
safety of the public , or a section of it, weather or not the
individual members of public may make use of the property
acquired.
 Which would promote public interest, or tend to develop the
natural resources of the state.
 Which would enable department of the government to carry
on its governmental functions.
30
LAND ACQUISITION & CONSTITUTIONAL
FRAMEWORK




Public Purpose
Which would serve the public, or a section of it, with some
necessarily or convenience of life, which may be required by the
public as such, provided that the public may enjoy such service
as of right. Or
Which would enable individuals to carry on a business, in a
manner in which it could not be otherwise be done, if their
success will indirectly enhance public welfare, even if the
acquisition is made by a private individual, and the public has
no right to any service from him, or to enjoy the property
acquired. Or
If the use to which the property would be put, is one of the
widespread general public benefit not involving any right on the
part of the general public itself, to use the property or;
Which would result in an advantage to the public; it is not
necessary that the property, or the work upon it, should be
available to the public as such; the acquisition may be in favour
of individuals, but in furtherance of scheme of public utility,
which would result in enhancement of public welfare.
31
LAND ACQUISITION ACT 1894: Highlights
 Part I : Section 1 to 3 deals with Title, extent and
Commencement
 Part II: Section 4 to 17 deals with Acquisition
 Part III: Section 18 to 28 deals with reference to Court and
procedure thereon
 Part IV: Section 29 and 30 deals with compensation
 Part V: Section 31 to 34 deals with Payment
 Part VI: Section 35 to 37 deals with Occupation of land
 Part VII: Section 38 to 55 deals with Acquisition of land for
companies
32
33
Flow chart showing the process of
Land Acquisition
• Determination of Area for land required and
its location.
• Filing of application to DM
• Setting of Survey team by DM
• Verification and valuation of land and property.
Cont………
Publication of section 6 in the
news paper apart from Public
Notice
Section – 6 Notification
*SLAO issues letter to deposit 10% of total
land value and 10% per expenses as advance
Approval of Rehabilitation scheme
20% needs to be deposited
Section 6 Application
Section 4 Notification
Publication in news paper apart from
Public notice in the villages, where
land is to be acquired
• Rehabilitation compensation to be
deposited.
• Submission of scheme
80% compensation of land value
needs to be deposited
Hearing of objection
* Special Land Acquisition Officer
34
POSSESSION
Compensation distribution by
SLAO Staff
Award to be granted by
Commissioner, and same is
declared by SLAO
Proposed award to be sent by
DM to commissioner for Approval
Crop compensation to be
deposited
Meeting for rate of Compensation by
DM
Objections to be received and
sorted out under sec 9(1) and (3)
Re-survey of property to find out any
defects/missing properties
35
ACQUISITON IN INDIA
Acquisition in Land for the Company in Private Sector;
 First Sec 4: Publication of notification.
 Sec 5: Objection regarding acquisition.
 Objection referred to Govt.
 Sec 40: Consideration of objection or further any inquiry by
Govt.
 Sec 41: Execution of the agreement by the Company.
 Sec 9: Public notice by the collector persons interested for
claiming compensation.
 Sec 11: Award after considering the objection raised.
 Sec 16: Possession can be taken after the Award
 Sec 17: Not available for the company in Private Sector.
 Reason: Under the definition of “Public Purpose” in sec 3(f),
acquisition of land for such company is not included.
36
NATIONAL R & R POLICY
Objectives:
 Minimization of displacement and promotion of leastdisplacing alternatives
 Ensuring adequate rehabilitation package and effective
implementation
 Active participation of affected families
 Protecting the rights of the weaker sections
 Treatment with sensitivity
37
NATIONAL R & R POLICY
 Providing better standard of living with sustainable income.
 Integration of rehabilitation concerns into the development
planning and implementation process.
 Harmonious relationship between project proponent and
affected families.
38
R & R POLICY
Social Impact Assessment (SIA) of Projects
 Social Impact Assessment (SIA):- Involuntary displacement
of four hundred or more families en masse in plain areas,
or two hundred or more families en masse in tribal or hilly
areas
 Consideration of impact on public and community
properties, assets and infrastructure; particularly, roads,
public transport, drainage, sanitation, sources of safe
drinking water etc.
39
R & R POLICY
 Undertaking of EIA & SIA simultaneously
 Availability of SIA in Public Hearing.
 Mandatory SIA clearance
 Compliance of SIA conditions
40
R & R POLICY
Rehabilitation and Resettlement Plan
Declaration of affected area
Baseline study
90 days
Draft findings of the survey to Public
30 days
Submission of the details of survey along with
recommendations to the appropriate government
45 days
Publishing of final details of
survey in the official Gazette
Final publication
Declaration of the
resettlement areas
Preparation of the draft
R&R Plan
41
R & R POLICY
Baseline survey: village-wise information of the affected
families:
 Members of the family who are permanently residing,
engaged in any trade, business, occupation or vocation in
the affected area;
 Families who are likely to lose, or have lost, their house,
agricultural land, employment or are alienated wholly or
substantially from the main source of their trade, business,
occupation or vocation;
 Agricultural labourers and non-agricultural labourers;
[
 Families belonging to the Scheduled Caste or Scheduled
Tribe categories;
42
R & R POLICY
 Vulnerable persons disabled, destitute, orphans, widows,
unmarried girls, abandoned women, or persons above fifty
years of age; who are not provided or cannot immediately be
provided with alternative livelihood, and who are not
otherwise covered as part of a family;
 Families that are landless and below poverty line, but
residing continuously for a period of not less than three years
in the affected area preceding the date of declaration of the
affected area; and
[
 Scheduled Tribes families who are or were having possession
of forest lands in the affected area prior to the 13thday of
December, 2005.
43
R & R POLICY
R & R scheme/plan details:
 The extent- of land to be acquired for the project and the
name(s) of the affected village (s);
 A village-wise list of the affected persons, family-wise, and
the extent and nature of land and immovable property
owned or held in their possession in the affected area, and
the extent and nature of such land and immovable
property which they are likely to lose or have lost,
indicating the survey numbers thereof;
 A list of agricultural labourers in such area and the
names of such persons whose livelihood depends on
agricultural activities.
44
R & R POLICY
 A list of persons who have lost or are likely to lose their





employment or livelihood or who have been or likely to be
alienated wholly or substantially from their main sources
of trade, business, occupation or vocation consequent to the
acquisition of land for the project or involuntary
displacement due to any other cause; a list of nonagricultural labourers, including artisans;
A list of affected landless families, including those, without
homestead land and below poverty line families;
A list of vulnerable affected persons,
A list of public utilities and government buildings which are
affected or likely to be affected;
Details of public and community properties, assets and
infrastructure;
A list of benefits and packages which are to be provided to
the affected families;
45
R & R POLICY
 Details of the extent of land available in the resettlement
area for resettling and for allotment of land to the affected
families;
 Details of the amenities and infrastructural facilities which
are to be provided for resettlement;
 The time schedule for shifting and resettling the displaced
persons in the resettlement area or areas; and
 Such
other particulars as the Administrator for
Rehabilitation and
Resettlement
may
consider
necessary.
46
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)
47
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)

R&R Bill,2011- Introduced in the Lok Sabha on
7.09.2011

Land Acquisition refers to the forcible acquisition of land
from an unwilling seller and is distinct from a land
purchase from a willing seller.

Not applicable to 16 existing legislations like Atomic
Energy Act, NH Act, SEZ Act, Railway Act, Land
Acquisition (Mines) Act etc.
48
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)

Applicable in cases when the appropriate government
acquires land
(a) for its own use and control
(b) to transfer it to private companies for public purpose, and
(c) On request of private companies for immediate use for
public purpose.


R&R needed by Private Companies when purchase or
acquire land, through private negotiations, equal to or
more than 100 acres in rural areas and 50 acres in urban
areas.
Applicability of R&R even part of area acquired by Govt.
along with the land purchased previously through private
negotiation.
49
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)

The term ‘public purpose’ in the Bill includes provision
of land for,
a)
b)
Strategic defense purposes and national security,
Roads, railways, highways, and ports, built by government
and public sector enterprises
Project affected people
Planned development or improvement of villages, and
Residential purposes for the poor and landless.
c)
d)
e)
Public purpose includes other government projects
which benefit the public as well as provision of public
goods and services by private companies or public
private partnerships; these require the consent of 80
percent of project affected people. Affected families
include those whose livelihood may be affected due to
the acquisition and includes landless laborers and
artisans.
50
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)

A maximum of five percent of irrigated multi-cropped
land may be acquired in a District, with certain
conditions.

Every acquisition requires a Social Impact Assessment
(SIA) by an independent body followed by a preliminary
notification and a final award by the District Collector.
In the case of urgency, the Bill proposes that the
appropriate government shall acquire the land after 30
days from the date of the issue of the notification
(without SIA). This clause may be used only for defence,
national security, and conditions arising out of a
national calamity.
[

51
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)

The compensation for the land acquired shall based on
the higher of;
a)
The minimum land value, specified in the Indian Stamp
Act, 1899 for the registration of sale deeds;
b)
The average sale price of the higher priced 50% of all
sale deeds registered in the previous 3 years for similar
type of land situated in the vicinity.
This amount is further doubled in in case of rural areas.
The value of the assets (trees, plants, buildings etc)
attached to the land amount will then be multiplied by
two to get the final compensation amount; in case of the
urgency clause, this multiplication factor will be 2.75.

Bill Proposes;
52
THE LAND ACQUISITION, REHABILITATION AND
RESETTLEMENT BILL, 2011 (DRAFT)




Authorities & Administrator- Commissioner for (R&R), R
& R Committee (for acquisition of 100 acres or more of
land); National Monitoring Committee for (R&R) and
Land Acquisition;
R & R Authority - Adjudication all disputes, with appeal to
the High Court.
If an acquired land which is transferred to a person for a
consideration, is left unutilized for a period of 10 years
from the date it was acquired, it shall be returned to the
Land Bank or the appropriate government.
In cases where the ownership of an acquired land is sold
to any person, without any development made, 20% of
the profit made shall be shared among all the persons
from whom the land was acquired.
53
LAND ACQUISITION IN INDIA
CONSTRAINTS
 Very limited unused land in India.
 Most of India's population is dependent on land for their
livelihood and do not have skills to work in other areas of the
economy. (72% of Indians live in rural areas).
54
LAND ACQUISITION IN INDIA
CONSTRAINTS
 Definition of public purpose is too vague
 Land Records
o Governed by registration act of 1908.
Act serves as a public record of transactions.
Registrar's office is not equipped to check authenticity of
title and also does not have access to land records or maps
to do so.
As a result, outdated and inaccurate records leads to
litigation.
55
LAND ACQUISITION IN INDIA
CONSTRAINTS
o Transaction costs
o
o
o
o
Stamp duty (tax 9 -10% of land value).
Leads to under reporting on transaction values.
Results in problems with determining land value.
Non Agricultural Use Clearance (NAC)
Used to reclassify agricultural land as non-agricultural land.
Purpose of act was to benefit farmer who wished to use his land
for non-agricultural purpose, such as building a home etc.
o State acquires land for industrial projects. Farmer is compensated
for value of agricultural land. NAC is issued and the land value
increases substantially.
o Direct instead of bidding process
o No discussion on How should NAC work? How to access fair
market value of land?
o
o
56
LAND ACQUISITION IN INDIA
CONSTRAINTS
o Process related to land acquisition
Discretionary powers available to State governments -Scope for
delay in land acquisition.
o Procedure for acquisition of land for private sector is more
cumbersome than that for public sector.
o
57
LAND ACQUISITION IN INDIA
CONSTRAINTS
o R&R Policy for Project Affected Families-2003
o
Problems - Not enough community participation in projects
o
Does not provide equitable benefit sharing between displaced
community and project owners.
o
Recognizes only land ownership rights and not land usage rights.
o
Rights of land squatters ???
58
LAND ACQUISITION IN INDIA
COMPENSATION ISSUES SETTLED BY COURT
Case – I : Konkan Railways

Compensation Rate
•
By acquisition authorities – Rs.4/m2
•
By District Court – Rs.192/m2
•
By High Court – Rs.38/m2
•
By Supreme Court – Rs.250/m2 (After criticizing the
High Court’s evaluation. “In our opinion the
compensation awarded by the high court had no
basis whatsoever and was not supported by cogent
reason and it did no consider the future prospect of
the development of the land in question”.
59
LAND ACQUISITION IN INDIA
COMPENSATION ISSUES SETTLED BY COURT
Case – II : Jhalejar Contractor Vs State of Gujarat

Compensation Rate
•
Demand by owners – Rs.40/ft2
•
Actual compensation awarded - Rs.35 – Rs.60/m2
•
Subordinate Court – Rs.200/m2
•
High Court – Rs.180/m2
•
Supreme Court decision – That the compensation
awarded by the high court was inadequate and it
modified the formula observing that “fixation of
compensation under the Land Acquisition Act
involves an element of rational guess work”.
60
LAND ACQUISITION IN INDIA
RECOMMENDATIONS
 Recognize Rehabilitation & Resettlement as key issue.
 Need an active participation of the affected persons
 Provide
additional benefits beyond monetary
compensation for involuntary displaced families.
 Emphasize assessment of plight of those who do not
have legal rights but critically dependent and
subsequent care of.
61
LAND ACQUISITION IN INDIA
RECOMMENDATIONS
 Conduct careful assessment of the economic




disadvantages and social impact of displacement.
Pursue holistic efforts for improving the all around
living standards of affected people.
Drive the updating of procedures, survey and
standardization of land and property valuation.
Enhance the existing capacity, awareness and
knowledge levels amongst the planners and
implementing partners
Decentralize the decision making process
62
What is Path
Forward
?
?
?
63
Partnering
with
Community
for Value Creation !!!
64
65