Skip to main content

Land acquisition Act, eco-clearance not chief reasons for stalling projects

By Venkatesh Nayak*
A big question that is begging a credible answer today is – why is the National Democratic Alliance (NDA) government hell-bent on road rolling amendments on to the land acquisition law without even implementing it despite vociferous opposition from several quarters?
Several spokespersons for the government and the political parties which support it have repeatedly said that the amendments to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (LARR Act), enacted by Parliament in 2013, first promulgated as an Ordinance, and repromulgated because they could not get the approval of Parliament last month, are necessary to arrest the slowing down of the economy and breathing life into the stalled development projects. The mainstay of this argument has been that the process of acquiring privately owned land for developmental projects laid down in the LARR Act is too cumbersome and requires simplification.
The state of the economy reported in Parliament by the Government in the form of the Economic Survey 2014-15 (ES14-15), a day before tabling the budget in February 2015, pointed out that the stalling of a large number of projects in the public and the private sector was the primary reason for the slowdown that the Indian economy was experiencing. However, detailed data on such projects was not annexed to that report. Official spokespersons repeatedly argued that the amendments to the land acquisition law were necessary to pull up the economy out of the nadir it had reached. After reading ES 14-15, I sought granular data from the Ministry of Finance under the Right to Information Act, 2005 (RTI Act) out of sheer curiosity. The Ministry of Finance moved with exceptional speed and provided a list of projects within less than a month of receiving the RI application and surprisingly without demanding any additional fee.

Major findings from an analysis of the data about stalled projects obtained through RTI

(1) The list supplied by the Ministry of Finance contains a total of 804 projects that have been stalled as of February 2015 for a variety of reasons across 24 states and two union territories. Maharashtra, with 125 stalled projects, topped the list followed by Gujarat (63 projects), West Bengal (55 projects), Karnataka (52 projects) and Telangana (52).
(2) The private sector projects (78%) outnumber the public sector projects planned by the Central or State Governments, or public sector enterprises or local municipal boards and autonomous authorities (22%).
(3) Only 8% (66) of the 804 projects are said to have stalled due to land acquisition problems. If the data provided under the RTI Act is an accurate reflection of the state of affairs, the argument that the slowdown in the economy is due to land acquisition projects becomes a busted myth – not on the basis if any biased analysis – but s simple count of the reasons provided in the last column of the attached list.
(4) Of the 66 projects stalled due to land acquisition issues, only 11 (1.36% of 804 projects) directly relate to the well-being of the disadvantaged or less affluent segments of society such as slum rehabilitation projects or construction of budget housing projects or a bus stand (which few affluent people use). So the proposal to amend the LARR Act to waive the requirement for taking consent of the village assembly in the areas where land is to be acquired for providing affordable housing for the poor will affect a minuscule number of projects. Therefore, the justification tomtommed for the amendment becomes untenable.
(5) Ironically, on other hand, at least 145 of the stalled projects (18%) are for the affluent and the rich as they are projects involving the construction of shopping malls or elite hotels and resorts (4 and 5 star), multiplexes, elite residences and villas, golf courses and a racing track. Another 25 stalled projects are about setting up townships – nothing in the list provided by the Ministry of Finance indicates which segment of society they are intended to benefit. Ten of the 66 projects are stalled due to land acquisition problems are in this elite category. However, it must also be said that the list of 804 projects also includes power generation, airport construction or expansion, road and railway expansion, pharmaceutical, textile, software and SEZ projects amongst others. Mining projects for coal and uranium amongst other metals are also part of the stalled projects list.
(6) Of the total of 804 projects the list mentions “Others” as the reason for the stalling of 19% of the projects (153). Reasons for stalling are simply not available for 15% of the projects (121). Taken together the projects for which reasons for stalling are either unspecified or simply not available amount to more than a third of the total number of projects (34%).
(7) A very high proportion of projects that remain stalled (38.8%) are due to unfavourable market conditions or lack of funds or promoter interest or raw material or fuel supply problems. Several of these projects are owned or promoted by some of the biggest industrial houses in India and a handful of foreign ownership. If one is interested, one may compare this list of Indian business houses with the list of corporates that made large sized donations to the leading national and state level political parties on the Political Party Watch segment of the website of the Association for Democratic Reforms (ADR).
(8) Lack of environmental clearances account for a mere 4.2% of the stalled projects whereas lack of clearance from the state governments amount to 11.8% of the total. It looks like the regulatory regimes have contributed to only 16% of the stalled projects. So the license-inspector raj also does not appear to be a major contributor to the stalling of the 804 projects, if the dataset is accurate.
So it is neither land nor the regulatory regime that appears to have contributed to the stalling of the developmental projects. One is reminded of the slogan that characterised the Presidential campaign of Bill Clinton in the USA during the 1990s — “It’s the economy, stupid”.

Some hard questions to which the RTI document does not provide answers

(1) For how long have these 804 projects remained in stalled condition? The RTI reply does not throw any light on this issue. Perhaps RTI users in the States might like to seek this information by demanding this information from the State and Central Governments through RTI applications.
(2) Are there only 804 projects across the country that have been stalled and none other, or is this only a sample of a larger universe of stalled projects?
(3) Of the 804 stalled projects the total monetary value of just 300 projects (37%) is said to be Rs 18.13 lakh crore (USD 287.42 billion where 1USD=INR 63.07) when they were reviewed at a recent meeting held by the Ministry of Finance. What is the total value of all 804 projects? The RTI data does not mention monetary value against all projects.
(4) The data that the Ministry of Finance provided under the RTI Act does not appear to be data that it has generated itself. The ES 14-15 clearly states that the figures are based on inputs provided by the Centre for Monitoring Indian Economy (CMIE). CMIE is a private sector business information company. What measures were taken to cross-check the veracity of the database that they provided the Ministry before it was inserted in the Economic Survey? Or is the database itself created on the basis of information gleaned from government records? Most importantly, if more than a third of the projects have been stalled for reasons unspecified or unknown, how can such incomplete data be used for reporting on the state of the economy to Parliament without making an effort to verify the claims contained in the database?
Ideally, the Government of India should have volunteered this information under Section 4 of the RTI Act in order to inform the citizens of India about the nature and magnitude of the problem. The Ministry of Finance earmarked the RTI reply — “for RTI purpose” – while sending it to me.
The data and analysis can help form one’s own conclusions to debate the need for the amendments to LARR Act in an informed manner.

*Programme Coordinator, Access to Information Programme, Commonwealth Human Rights Initiative, New Delhi

Comments

TRENDING

Loktantra Bachao Abhiyan raises concerns over Jharkhand Adivasis' plight in Assam, BJP policies

By Our Representative  The Loktantra Bachao Abhiyan (Save Democracy Campaign) has issued a pressing call to protect Adivasi rights in Jharkhand, highlighting serious concerns over the treatment of Jharkhandi Adivasis in Assam. During a press conference in Ranchi on November 9, representatives from Assam, Chhattisgarh, and Madhya Pradesh criticized the current approach of BJP-led governments in these states, arguing it has exacerbated Adivasi struggles for rights, land, and cultural preservation.

Promoting love or instilling hate and fear: Why is RSS seeking a meeting with Rahul Gandhi?

By Ram Puniyani*  India's anti-colonial struggle was marked by a diverse range of social movements, one of the most significant being Hindu-Muslim unity and the emergence of a unified Indian identity among people of all religions. The nationalist, anti-colonial movement championed this unity, best embodied by Mahatma Gandhi, who ultimately gave his life for this cause. Gandhi once wrote, “The union that we want is not a patched-up thing but a union of hearts... Swaraj (self-rule) for India must be an impossible dream without an indissoluble union between the Hindus and Muslims of India. It must not be a mere truce... It must be a partnership between equals, each respecting the religion of the other.”

Right-arm fast bowler who helped West Indies shape arguably greatest Test team in cricket history

By Harsh Thakor*  Malcolm Marshall redefined what it meant to be a right-arm fast bowler, challenging the traditional laws of biomechanics with his unique skill. As we remember his 25th death anniversary on November 4th, we reflect on the legacy he left behind after his untimely death from colon cancer. For a significant part of his career, Marshall was considered one of the fastest and most formidable bowlers in the world, helping to shape the West Indies into arguably the greatest Test team in cricket history.

Andhra team joins Gandhians to protest against 'bulldozer action' in Varanasi

By Rosamma Thomas*  November 1 marked the 52nd day of the 100-day relay fast at the satyagraha site of Rajghat in Varanasi, seeking the restoration of the 12 acres of land to the Sarva Seva Sangh, the Gandhian organization that was evicted from the banks of the river. Twelve buildings were demolished as the site was abruptly taken over by the government after “bulldozer” action in August 2023, even as the matter was pending in court.  

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah  The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

Will Left victory in Sri Lanka deliver economic sovereignty plan, go beyond 'tired' IMF agenda?

By Atul Chandra, Vijay Prashad*  On September 22, 2024, the Sri Lankan election authority announced that Anura Kumara Dissanayake of the Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) alliance won the presidential election. Dissanayake, who has been the leader of the left-wing JVP since 2014, defeated 37 other candidates, including the incumbent president Ranil Wickremesinghe of the United National Party (UNP) and his closest challenger Sajith Premadasa of the Samagi Jana Balawegaya. 

Will Bangladesh go Egypt way, where military ruler is in power for a decade?

By Vijay Prashad*  The day after former Bangladeshi Prime Minister Sheikh Hasina left Dhaka, I was on the phone with a friend who had spent some time on the streets that day. He told me about the atmosphere in Dhaka, how people with little previous political experience had joined in the large protests alongside the students—who seemed to be leading the agitation. I asked him about the political infrastructure of the students and about their political orientation. He said that the protests seemed well-organized and that the students had escalated their demands from an end to certain quotas for government jobs to an end to the government of Sheikh Hasina. Even hours before she left the country, it did not seem that this would be the outcome.

A Marxist intellectual who dwelt into complex areas of the Indian socio-political landscape

By Harsh Thakor*  Professor Manoranjan Mohanty has been a dedicated advocate for human rights over five decades. His work as a scholar and activist has supported revolutionary democratic movements, navigating complex areas of the Indian socio-political landscape. His balanced, non-partisan approach to human rights and social justice has made his books essential resources for advocates of democracy.

Tributes paid to pioneer of Naxalism in Punjab, who 'dodged' police for 60 yrs

By Harsh Thakor*  Jagjit Singh Sohal, known as Comrade Sharma, a pioneer of Naxalism in Punjab, passed away on October 20 at the age of 96. Committed to the Naxalite cause and a prominent Maoist leader, Sohal, who succeeded Charu Majumdar, played hide and seek with the police for almost six decades. He was cremated in Patiala.