LARR stands for Land Acquisition Rehabilitation and Resettlement Act.
LARR brought in by the UPA was an amendment to the act already in place since 1894.
LARR 2013 -
1.) Focused primarily on the land loser.
2.) Meant to make acquisitions process just by using a rights based approach.
3.) Primary objective was to deliver justice to people affected by land acquisition.
4.) LARR 2013 expanded the definition of project affected people and expanded the rights , protections and compensations for people who lose land or livelihood.
5.) It assumed price of the land matters only to the land owner and not the land acquirer , which raised the price of the land acquisition to unsustainably high levels,
6.) An SIA(Social Impact Assesment Report ) should be prepared before land acquisition.
7.) 80% consensus for Private Projects and 70% consensus for public-private-partnerships(ppp) is required for land acquisition.
8.) Compensation - 2times the market price - urban land.
- 4times the market price - rural land.
For better understanding of the impact of LARR , we need to understand that for every acquisition , there are two components of price.
Direct - Price of land.
Indirect -
1.) Transaction Costs - Cost of doing social impact assesment , conducting refrenda , cost of running multilayered acquisition.
2.) Opportunity Costs - Which arise from time taken to conclude an acquisition.
The LARR 2013 made indirect costs very high . Also , If all the steps defined in LARR 2013 were accomplished in time , each acquisition would take around 5 years , might even more.
The current BJP led NDA government again amended this act . Let us call it LARR 2014.
1.) It was based on the fact that price matters both to land acquirer and land loser.
2.) No provision of SIA report or any kind of consensus among people being affected by the land acquisition,
3.) Keeps the price of the land same as in the previous act,
4.) Likely to work for short term and not long term because of rising land prices.
5.) Increases the number of people eligible for payoffs by the acquisition by bringing into the ambit of LARR 13 new cattegories that were earlier excluded(Railways , Atomic energy , Metro etc).
6.) Reduces the time of acquisition for the land acquirers , thus reducing opportunity cost .
Pros and Cons of the new amended LARR 2014.
Pros -
1.) Indirect cost removed by removing social impact assesment.
2.) Land acquisition would be faster.
3.) 13 new cattegories brought under the ambit of LARR , thus more people eligible for payoffs.
4.) Decline in discretionary powers of bureaucrats , thus lesser corruption.
Cons -
1.) No SIA , thus industry centric.
2.) No consensus , thus priceless land like Nyamgiri HIlls cannot be analysed.
3.) More fertile land can be acquired , thus reducing agricultural area.
4.) Relaxations in laws regarding return of unused land back to the original owner and this makes prosecution of defaulting civil servant difficult.
LARR brought in by the UPA was an amendment to the act already in place since 1894.
LARR 2013 -
1.) Focused primarily on the land loser.
2.) Meant to make acquisitions process just by using a rights based approach.
3.) Primary objective was to deliver justice to people affected by land acquisition.
4.) LARR 2013 expanded the definition of project affected people and expanded the rights , protections and compensations for people who lose land or livelihood.
5.) It assumed price of the land matters only to the land owner and not the land acquirer , which raised the price of the land acquisition to unsustainably high levels,
6.) An SIA(Social Impact Assesment Report ) should be prepared before land acquisition.
7.) 80% consensus for Private Projects and 70% consensus for public-private-partnerships(ppp) is required for land acquisition.
8.) Compensation - 2times the market price - urban land.
- 4times the market price - rural land.
For better understanding of the impact of LARR , we need to understand that for every acquisition , there are two components of price.
Direct - Price of land.
Indirect -
1.) Transaction Costs - Cost of doing social impact assesment , conducting refrenda , cost of running multilayered acquisition.
2.) Opportunity Costs - Which arise from time taken to conclude an acquisition.
The LARR 2013 made indirect costs very high . Also , If all the steps defined in LARR 2013 were accomplished in time , each acquisition would take around 5 years , might even more.
The current BJP led NDA government again amended this act . Let us call it LARR 2014.
1.) It was based on the fact that price matters both to land acquirer and land loser.
2.) No provision of SIA report or any kind of consensus among people being affected by the land acquisition,
3.) Keeps the price of the land same as in the previous act,
4.) Likely to work for short term and not long term because of rising land prices.
5.) Increases the number of people eligible for payoffs by the acquisition by bringing into the ambit of LARR 13 new cattegories that were earlier excluded(Railways , Atomic energy , Metro etc).
6.) Reduces the time of acquisition for the land acquirers , thus reducing opportunity cost .
Pros and Cons of the new amended LARR 2014.
Pros -
1.) Indirect cost removed by removing social impact assesment.
2.) Land acquisition would be faster.
3.) 13 new cattegories brought under the ambit of LARR , thus more people eligible for payoffs.
4.) Decline in discretionary powers of bureaucrats , thus lesser corruption.
Cons -
1.) No SIA , thus industry centric.
2.) No consensus , thus priceless land like Nyamgiri HIlls cannot be analysed.
3.) More fertile land can be acquired , thus reducing agricultural area.
4.) Relaxations in laws regarding return of unused land back to the original owner and this makes prosecution of defaulting civil servant difficult.
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