Addressing Land Issues for Smart Cities

04/21/15 1Dr. Reshmy Nair

Dr. Reshmy NairAssociate Professor

Centre for Excellence in Management of land Acquisition, Resettlement and Rehabilitation, ASCI, Hyderabad

reshmy.asci@gmail.com/reshmy.nair@asci.org.in

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Location Area(Acres)

Key Institution and Issues Agency

Navelim, Goa 33 Sewage Treatment- To take less productive lands

State Government

Una, Himachal Pradesh 8000 Airport and Aircraft SEZ/Farmers Unwilling to give up irrigated land; Project Abandoned

State Government

Dabolim Village, Goa 19 Real Estate, Ecological grounds DLF Ltd

Lower Penganga Valley, Maharashtra

47000 Irrigation/Livelihood and Good Soil State Government

Rajarhat, West Bengal 50 IT Complex/Forced Acquisition and Corruption Allegations by TMC

Infosys Technologies

Peelamedu, Chinniapalayam, Chennai, Tamil Nadu

415 Airport/ Greater Compensation Airports Authority of India

Unnao, Kanpur, Uttar Pradesh

1200 SEZs/ Greater Compensation UP State Industrial Development Corporation

Belgaum, Karnataka 1078 Petrochemical Plant/ No Livelihood Alternative

Zuari Fertilizers and Chemicals Ltd, Karnataka Industrial Areas Development Board

Land Acquisition Stalled Projects - Typology

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“Despite its immense potential and promise, by many accounts, India continues to suffer from poverty. A third of its population still lives in extreme poverty-possibly the highest incidence outside sub-Saharan Africa-and many people still lack access to basic services and opportunities such as sanitation, healthcare and quality schooling. The infant mortality and malnutrition incidences are among the highest in the world while we have the second shortest life expectancy in Asia. To a lesser extent, its large informal economy and its lack of a universal social safety net show that India remains largely a poor country that is developing with large disparities within its society”.

The Global Competitiveness Report, 2014-15, World Economic Forum (WEF)

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• Growth should enhance employment opportunities–surest way of being included• Growth should be spread across major sectors of the economy

SOME IGNORED STRATEGIC FACTORSAgriculture Employment/ Growth• GDP growth originating in agriculture is twice as effective in reducing poverty as

GDP growth originating outside (World Development Report, 2008).

Inclusive Growth - Growth of Largest Numbers (??)

Sectors Share in GDP Share in Total Employment

Agriculture & Allied 14 49Industry 27 24Services 59 27Source: Economic Survey, Government of India, 2013-14

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“ Vikas Nahi Samman Chahiye” – No longer Acceptable ..Social equity has a dialectical effect on advancement of economic equity…

Poverty: One-third of the world’s poor live in India.

15-35% of agricultural land is farmed by tenants (Committee on Land Reforms, 2009)

Official Poor - 22 percent. Significant number of just above the official poverty line

are “vulnerable" and shocks such as illness or a job loss can push them back into desperate circumstances.

Out of pocket expenditure on health is roughly 78 percent (among the highest in the world (Shiva Kumar et al. 2010). From 8% in 1947, private sector today accounts for 93% of all hospitals, 64% of beds and 80-85% of doctors. 39 million people dunked yearly below poverty line for medical reasons (Sinha, 2011).

India spends 1.2 % on health vis-à-vis 3.4% in other middle income countries (Gupta, 2002) and among lowest in the world .

ECONOMIC WOES

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Average age of the Indian population: (125 billion) -29 years in 2020.

Working age population - 58 (2001) to 64 percent (2021)

BPO: 6 percent of the country’s GDP employs merely 0.6 percent of India’s 482 million strong workforces (GCR, WEF, 2014-15).

Share of manufacturing in employment: Stagnating at 11 percent since 1990s.

India will need to find 44 million additional jobs between 2015 and 2020 (only 2.7 million extra jobs created between 2004-05 and 2009-10)

Share of informal sector in employment: 92% (National Commission on Enterprises in the Unorganized Sector).

Estimates for 2020: 700 million people of working age (24-59 years); 500 million workers (including migrants in lean agricultural seasons) will require vocational/skill training.

EMPLOYMENT /WORKFORCE

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EMPLOYMENT /WORKFORCE

2010 2015 2020 2025 2030 2035 2040

Fixed Worker participation Rates (millions)

Male Workers 339 361 380 398 414 426 437

Female Workers 127 136 143 150 157 162 167

Total Workers 467 496 523 548 570 589 604

Extra Jobs 30 27 25 22 18 15

Rising Worker Participation Rates (millions)

Male Workers 339 361 390 418 445 471 494

Female Workers

127 136 151 166 182 197 213

Total Workers 467 496 540 584 627 668 707

Extra Jobs 30 44 44 43 41 39

Source; United Nations Department of Economic and Social Affairs

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• Largest share of workforce - greatest numbers• Lacklustre growth of agriculture since the early 1990s• Double digit food price inflation-a grim reminder• Less than 45% of land under assured irrigation. Poverty rates in

irrigated districts one-third than in districts without irrigation (World Bank 2005).

????

Productivity Enhancement – declining relative price of food – secondary expansion for other sectors (direct and indirect)

Better educational preparedness – farm and for decrease in overcrowding of workforce

Dynamic Agriculture – Strategic Factor

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Historical Injustice in Development Induced Displacement

Highly Inequitable Growth Process

Time/Cost Overruns due to Protest Induced Delays

Development as a “Win-Win” situation for all

LAA, 1894: Perceived Low Compensation, Lack of Sustainable Livelihood Llternative, Lack of Transparency/ Consultations, Acquisition for any Public Purpose, Misuse of Urgency Provisions etc.

Land Acquisition Stalled Projects - Typology

SOCIAL IMPACT ASSESSMENT: Entry point for Consultation and more of a Conflict Settlement Mechanism – minimises land requirement & displacement, reduces information asymmetry induced land selling etc

Timelines – MAXIMUM1. SIA and Expert Group (EG) – Maximum of 8 Months2. Preliminary Notification - Within 1Year of EG Report - IMMEDIATELY3. Final Declaration-Within One Year4. Award-Within One Year-WITHIIN SIX MONTHS5. Possession of Land (No displacement ) –Within 6 months of Award 6. Possession in Case of Displacement - Within 18 months of award

INSTITUTIONAL MECHANISMS: To aid implementation; LARR Authority: Cases to be decided in 6 months

WAY FORWARD – ALTERNATIVE MODELS-LA + BENEFIT SHARING

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Major Apprehensions

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Protects:Land owners and Livelihood Losers with much greater benefits

Promotes:Consultation, transparency and consent to reduce conflictsUtilization of excess land available Innovations like land lease, sharing of developed land etc

Prevents:Excess land acquisitionMore Displacement than WarrantedAcquisition of land in Scheduled AreasAcquisition of multi-crop irrigated land (except as a last resort)

Existing Legislative Framework

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Information Revolution

Role of media

Civil society (3.3 million)

Contradictory role of political parties (inconsistent and opportunistic).

Universal recognition of Development as a “Win-Win” situation for all/ Resettlement as a Development Opportunity

SOCIAL BACKGROUND

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The AP Land Pooling ModelPatta Dry Wet

Residential 1000 Sq.yards 1000 Sq.yards

Commercial 200 Sq.yards 300 Sq.yards

Yearly Payment for 10 yrs(Rs.) 30,000 50,000

Yearly increase (Rs.) 3000 5000

One time additional payment for gardens like lime/sapota/guava

50,000

Pension of two thousand five hundred rupees per month per family for a period of ten years to all landless families through a capital region social security fund

Housing to houseless as well as those losing houses in the course of development

Interest free loan of up to 25 lakhs to all the poor families for self employment

Free education and medical facilities to all those residing as on 8/12/2014

Establish old age homesEstablish NTR canteensEstablish skill development institution and provide training with stipend to enhance the skills of cultivating tenants, agricultural labourers and other needy persons

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Is land proposed to be pooled/acquired the minimum required

Have irrigated land been avoided to the best extent

What will be the ‘loss’ to the existing land-owners/other livelihood losers and how is this proposed to be covered by the Government?

How will people who are displaced (physical/livelihood) be relocated by the Government?

What are the skills of the population in the acquired area and the employment opportunities that would be available post acquisition/pooling of the land? What steps would be taken to successfully address the gap?

Does the land pooling incorporate equity criterion in deduction policy? What are the innovative models of benefit sharing that can make the

land-losers permanent stakeholders in the project?

Smart Planning in Land Pooling- Due Diligence in Reducing Conflicts