The Land acquisition Bill - is it the Sonrise?

Now, this is an altogether good bill that the Lok Sabha passed yesterday. The salient features are:

To purchase land for SEZ/ industries or infrastructure development:

* 70 to 80% farmers consent would be needed

* They will be paid value 4 times the market value in the rural areas and two times in the urban areas.

That Rahul Gandhi championed it is also great as I think he generally connects with the rural masses of this country – I always read about him traveling to all sorts of remote areas. 

But what are the good and bad sides to this bill?

The Good

* No need for 100% consent as the Left often proposes since that is practically impossible. I think 70 – 80% consent is a pretty good way to acquire land.

* A legal guideline exists for what compensation will be paid to the farmers and especially in rural areas, giving them 4 times the market value is a good idea as land is rather cheap in the countryside.

* The objection that it is industry unfriendly is not valid – industry will rake good profits out of the project provided they are given clear titles and land once acquired is not opposed by activists, opposition parties etc. The only way industry gets hurt (e.g. Tata Nano plant) is when they set up a factory and then the protests start to shut down the plant. So, they lose time money and energy. If land acquired through this bill is clean and clear, they stand to benefit.

The Bad

The flipside to this bill is something universal to all Parliament bills – Enforcement and implementation. All are bills are well debated and the Indian legal framework is outstanding to say the least. But implementation is so tardy that it becomes meaningless. Now what will be the hurdles for implementing this bill in reality?

* It would be hard to quantify 70% or 80% consent as a lot of intimidation will be used to get farmers to agree. In case they voluntarily agree, opposition parties will claim intimidation was used.

* What is the “market value” – now this is where the bill will lose its sheen. How do you determine market value? In rural areas, market value of land is pretty low plus it tends to start rising when a project comes there and as the industrial project advances, the market value goes up further. When the farmers agree to sell their land, it is based on rural market value which existed when there was nothing. But in a span of a year or two, they see that market value spiral and then agitate to demand compensation based on the new market value (which is an oxymoron because if there was no industry, the market value would not have risen). So, they start protesting and demanding their land back and the activists and the opposition parties go into a frenzy over that.

* Also, the Middle men tend to pocket sums and never pass on the right compensation to the farmers. They may even tend to grab lands of the lower caste segments (if they have any to begin with)

So, great Bill Mr. Gandhi but long way to go in delivering it in reality - that is where the real work is.

But it is a good bill to enter the election fray with – I think this son has risen!