Land Acquisition Experiences

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Land Acquisition

ExperiencesIndia Infrastructure Report 2009Land Acquisition & Environmental Impact

Group 5Anis Desai, Ankush Huddar,Gaurav Vaish

Jeet Bhatt, Kislay Kumar, Sidharth


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Presentation Outline


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Insights into LandAcquisition

Private Businesses Perspective Increasing socio political constraintsagainst land acquisition for industrialprojects

Leads to cost overruns, time lags,business uncertainties, and evenshelving of projects

Factor for success is SOCIALCONSENT TO OPERATE


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Social Consent to Operate Securing the free, prior, andinformed consent of affectedcommunities

Each strategy needs to be unique

20 major attempts for land

acquisition analyzed for success andfailure

Trying to find out the commonalities

between successful and unsuccessfulac uisitions


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Successful Land Acquisition Model


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AcquisitionUnsuccessful Land Acquisition

Model


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AcquisitionKey Characteristics of Successful

Acquisitions Avoid Productive Lands

Open direct communication channels

with locals Equitable benefit sharing

No political alignment

Coordinated corporatecommunications


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AcquisitionKey Characteristics of Unsuccessful

Acquisitions High profile promoters

Slow acquisition process

Unacceptable rehabilitation package Aligning with political parties

Wrong or confusing communication

signals


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AcquisitionSuccessful Model: JSW Bengal Steel

Project

Jindal State Gov Local Agents /

Stage 1 Stage 2 Stage 3


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AcquisitionUnuccessful Model: Tata Motors

Singur

Tata State Gov Local MediaAgents /

Stage 1 Stage 2 Stage 3

L d A i iti f


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Land Acquisition forRailways

Haridaspur- Paradip Railway Line 82km long port connectivity project underNational Rail Vikas Yojana(NRVY).

Project being implemented by RVNL

SPV called Haridaspur-Paradip RailwayCompany Limited(HPRCL)

Landing cost of project is Rs. 1,000 crores Land acquisition cost to be borne by SPV

and as per CA acquired land will be givento SPV at licence fee for Rs. 1 for 30 years

No significant developments and high riskof time and cost overruns.


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RailwaysHaridaspur- Paradip Problems in

Acquisition Inconsistent Executive Decisions withGovernment Rules

Unfair Demand for Compensation

Case of single Hold Out

Poor Law and Order Situation

Cess Charges for Government Land

L d A i iti f


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Land Acquisition forRailways

Surat Hazira Railway Line Project is 26km long new rail line andprovides connection to Hazira Port fromSurat

Discarded alignment surveys in last 4years due to various reasons

By 2008, land finally identified for Rail

Corridor Initial cost of project was 100

Crores(Landed cost:120 Crores)

Final estimated cost is 195 Crores(LandedCost: 245 Crores

L d E ti &


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Land Evacuation &Rehabilitation

Delhi International Airport GoI handed over Indira GandhiInternational Airport to GMR formodernization

GMR led consortium, DelhiInternational Airport Limited (DIAL),faced two challenges

Had to get possession of some landacquired for AAI

Remove encroachments on some parts

of land already owned by AAI

L d E ti &


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Delhi International Airport

Quantum of problem :

A. Land acquired for AAI butpossession not given to AAI: 59.84acres

B. Land under encroachment: 30.22acres

L d E ti &


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Delhi International Airport (A) was acquired in 1972 under LAA of 1894 AAI to undertake responsibility and costs for

bearing the rehabilitation Rehabilitation scheme entailed provision of

alternative residential sites and monetarycompensation of Rs. 24/m2

Writ petition filed by residents Court gave stay and 3 months to resolve the issue

Location identified for R&R and responsibility fordevelopment of this land handed over to DDA LAC and GNCTD identified that affected families

increased to 953 from 308 in 1972 DDA revised scheme for resettlement

L d E ti &


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Challenges Before DIAL 147 pending cases against land acquisition Affected families further increased to

1,500

Many families sold the new allotted landand continued to live at proposed site

Some sold the proposed land to outsider

business people Confronted with problem of encroachment

on about 30 acres of land housing 1952

families and 11 temples


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RehabilitationDIALs Approach to Land

Acquisition

Formed strategic 9 member team called as LandManagement Department

Petitioned Delhi High Court to transfer all casesunder one judge which was accepted

Formed two other committees: Apex Committeeand Working Committee to coordinate all thedepartments

Talks were held with Encroachers and with the

politicians supporting the encroachers

High Court gave judgment in favor of DIAL

Land Management Department choked out

evacuation program


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RehabilitationDIALs Approach to Land

Acquisition (Contd..) Above AAI compensation, DIAL offered each familya rent of 6 month period

Evacuation of encroachers done under J&Jresettlement policy and awarded Rs. 29,000 persquatter family by DIAL

Temples relocation done under Religious StructuresRelocation Policy

All the existing facilities were provided in relocatedarea

Di i f F t L d


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Diversion of Forest LandEffect of Forest Conservation Act

1980Forest Coverage In India1987

Source: Forest Survey of India


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Before & After The Act 1980Impact on Forest Land Diversion


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Stats and FiguresPre & Post Act of 1980


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Stats and FiguresPre & Post Act of 1980

ual Diversion of Forest


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,1980

Bhilai Steel Plant & Itanagar Airport

Cases


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The Act has invoked awareness andprudence

Better and faster scrutiny

Reduction in rampant destruction ofprecious forest cover

More emphasis on prevention ratherthan restoration

You may re-plant a felled tree,

Effect of the Forest Act,

1980

Land Acquisition for Cochin


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Land Acquisition for CochinPort

Cochin Port Container TerminalContext Container Transshipment Terminal @

Cochin Port

Proposal of railway connectivity to theterminal

Total land acquisition required = 4.3 ha

Land parcels to be acquired = 261

Non-Applicability of NRRP

Forced Eviction of all families

Land Acquisition for Cochin


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Land Acquisition for CochinPort

Cochin Port Container TerminalTakeaways from the Case Although the land size was small, the

division into very number of parcels

became a more critical issue than the landsize itself

Forced Eviction only led to aggravation

which could have been prevented if theR&R package was announced earlier.

The just nature of the R&R package whichgave land in return for land and that too in

the viscinity was the key to a successful


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Land Acquisition Case StudyMIHAN SEZ Nagpur

Brief Introduction MIHAN Multi-modal International Cargo Hub and

Airport at Nagpur

Air Cargo Hub / Aircraft Maintenance / Boeing / AirForce base

IT SEZ Satyam, HCL, TCS, Wipro

Industrial Park

Residential Park

Developer Maharashtra Airport DevelopmentCompany Ltd.

Size of SEZ & Cargo HUB 4,354 Hectares


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Project Plan

Air Force /Gajraj Project

IndustrialLand

IT SEZ

Air CargoHub

Residential Park

Source : MIHANwebsite


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Issues In Land Acquisition MADC acquired land from farmers, builders,

disputed titles & Govt.

Current acquisition 3,294 hectares (75%)

Farmers were forced to move out of their landswithout providing for a relocation plan at measlyprices for their land

The MADC acquired most land parcels forcefullyleading to protests and agitations all over

Consequent Project Delays

Refusal by companies to takeover the land allotted


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Role of MADC MADC was the responsible body for land

acquisition, allotment to companies, developmentof allied infrastructure

R.C. Sinha led MADC to violate many SEZ laws

The Land was acquired for peanuts and sold hadexorbitantly high prices to the participatingcompanies

Land was acquired slowly over almost a decade

The land acquired earlier was bought at dirt cheapprices

The Land acquired later was bought at much


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Current Scenario Farmers whose lands were acquired are now

poorer than before

Those who received compensations blew away themoney in consumer goods and marriages of kin

Employment opportunities in the SEZ / Cargo Hubhave not materialised

The project sites lie vacant as only theinfrastructure has developed so far which itself hasbeen delayed

Satyam was the largest land parcel holder in the IT

SEZ


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Project ProgressRecent Developments

Main SEZ Office & BusinessHub

Recently Completed Flyover

to SEZ


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THANK YOU

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