Answer: 

Introduction:

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 replaced the archaic Land Acquisition Act of 1894.

India’s land acquisition was undertaken under antiquated Colonial Land acquisition act which had led to increased distress, conflict over eviction of land owners and landless labour from their land without proper compensation or rehabilitation. This led to enactment of the LARR Act 2013.

Body:

The new Act addresses several issues which are as follows:-

• Unlike the old Act, the new Act will provide for rehabilitation and resettlement of people displaced by land acquisition.
• Consent: Earlier there was no requirement for prior consent. The new Act makes it necessary to obtain consent of 80% land owners required for private projects and 70% landowners required for Public-Private Partnership Projects.
• Increasing the compensation value. Higher compensation of 4 and 2 times of market rate for land acquisition in rural and urban areas respectively.
• SIA: The earlier Act did not take into account the impact of land acquisition on different sections of society. This issue has been addressed by introducing social impact assessment (SIA) prior to land acquisition.
• Restrictions on agricultural land: There is restriction on land acquisition of irrigated multi-cropped land. It addresses the issue of shrinking agricultural land.
• Special safeguards for tribal communities are expected to solve the issue of tribal displacement.

Its implications are mixed to negative on industrialization and agriculture

• Delay in projects: The requirement of a social impact assessment and consent of 80% of the people for every acquisition can delay the completion of industrial projects.
• Viability: High rates of compensation can make industries and infrastructure projects economically unviable.
• Exemptions granted to the SEZ Act is a boon for industries that need land for establishing industries and building required infrastructure.
• There is restriction on acquisition of irrigated multi-crop land. This will have a positive effect on agriculture.
• The Act provides that when acquiring agricultural land, the state has to cultivate an equivalent area of land elsewhere as agriculture land. This provision will also aid agriculture.
• The delay in infrastructure projects needed for the agriculture sector may adversely affect agriculture growth.
• Uneven impact as major industrial activities like mining are exempt from LARR.

Conclusion:

The LARR Act of 2013 was brought to give effect to the pre-existing fundamental right to livelihood of citizens. It ensures that livelihood will not be taken away unless it is in public interest or the affected citizens are given rehabilitation.