Model Answer

Introduction

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARR) 2013 replaced the outdated Land Acquisition Act of 1894. This new legislation aims to address historical injustices related to land acquisition, focusing on fair compensation, rehabilitation, and resettlement for affected individuals.

Key Issues Addressed by the Act

1. Rehabilitation and Resettlement
   • The LARR Act mandates provisions for the rehabilitation and resettlement of individuals displaced by land acquisition, a significant improvement over the previous law.
2. Consent Requirements
   • The Act requires the consent of 80% of landowners for private projects and 70% for Public-Private Partnership (PPP) projects, ensuring greater community involvement.
3. Increased Compensation
   • Compensation is set at 4 times the market rate for rural land and 2 times for urban land, providing more equitable compensation for affected individuals.
4. Social Impact Assessment (SIA)
   • The introduction of SIA evaluates the potential impacts of land acquisition on various social groups, promoting informed decision-making.
5. Restrictions on Agricultural Land Acquisition
   • The Act restricts the acquisition of irrigated multi-cropped land, addressing concerns about the loss of agricultural land.
6. Special Safeguards for Tribal Communities
   • The Act includes provisions to protect the rights of tribal communities, aiming to prevent displacement without proper compensation.

Implications for Industrialization and Agriculture

1. Delays in Project Implementation
   • The requirement for SIA and community consent can lead to delays in industrial projects, potentially hindering economic growth.
2. Economic Viability
   • Higher compensation rates may affect the financial viability of industrial and infrastructure projects, making them less attractive to investors.
3. Positive Impact on Agriculture
   • Restrictions on the acquisition of agricultural land and the requirement for equivalent land cultivation elsewhere can help preserve agricultural viability.
4. Adverse Effects on Infrastructure Development
   • Delays in acquiring land for essential infrastructure projects may negatively impact agricultural growth and rural development.
5. Exemptions for Major Activities
   • Certain industrial activities, like mining, are exempt from the LARR Act, leading to an uneven impact across sectors.

Conclusion

The LARR Act of 2013 aims to uphold citizens’ fundamental right to livelihood by ensuring fair compensation and rehabilitation in land acquisition processes. While it addresses critical issues related to displacement and compensation, it also presents challenges for industrialization and agricultural growth that need careful consideration.