2008 insights into land acquisitions experiences
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Ram Kumar Kakani, T L Raghu Ram, & Nutan Shashi Tigga/ XLRI Jamshedpur / 2008 Insights Into Land Acquisition Experiences 0f Private Businesses in India Insights Into Land Insights Into Land Acquisition Experiences Acquisition Experiences 0f Private Businesses in 0f Private Businesses in India India XLRI Jamshedpur Working Paper No. 08-11; Available at: http://ssrn.com/abstract=1295407
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Transcript of 2008 insights into land acquisitions experiences
Ram Kumar Kakani, T L Raghu Ram, & Nutan Shashi Tigga/ XLRI Jamshedpur / 2008
Insights Into Land Acquisition Experiences 0f Private Businesses in
India
Insights Into Land Insights Into Land Acquisition Experiences Acquisition Experiences 0f Private Businesses in 0f Private Businesses in
IndiaIndiaXLRI Jamshedpur Working Paper No. 08-11; Available at: http://ssrn.com/abstract=1295407
♦Legal Clearances, Environmental Clearances, Court Orders can be managed. ♦Most ‘private businesses’ know!♦Stress on ‘Social Consent’ to Operate
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MEANS ... SECURING THE FREE, PRIOR, AND INFORMED CONSENT OF AFFECTED COMMUNITIES TO PART WITH OR SHARE THEIR RESOURCES AND ALSO GIVE CONSENT TO THE BUSINESS TO OPERATE IN THEIR COMMUNITY.
‘Social Consent’ to Operate
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Project Brief Sponsor Name Place Status
Car Plant Tata Motors Singur (West Bengal) Abandoned
Power Plant, Fertilizer & Steel Tata Group Barapukuria (Bangladesh) Abandoned
Steel Plant Tata Steel Gopalpur (Orissa) Abandoned
Titanium Dioxide Tata Steel Tuticorin (Tamil Nadu) Abandoned
Steel Plant Tata Steel Saraikela (Jharkhand) Temporarily Stalled
Alumina Refinery Vedanta (Sterlite) Lanjigarh (Orissa) Tending towards Failure
Aluminuim Smelter Vedanta (Sterlite) Jharsuguda (Orissa) Tending towards Failure
Steel Plant Bhusan Steel Potka (Jharkhand) Tending towards Failure
Steel Plant Tata Steel Bastar (Chhattisgarh) Tending towards Failure
Steel Plant Essar Group Paradip (Orissa) Tending towards Failure
Steel Plant POSCO Korea Paradip (Orissa) Tending towards Failure
Steel Plant L N Mittal Group Torpa (Jharkhand) Tending towards Failure
Steel Plant L N Mittal Group Kasaphal (Orissa) Tending towards Failure
Steel Plant Tata Steel Kalinganagar (Orissa) Tending towards Failure
List of Industrial Projects of Private Business along with their Status
Tata Motors Small Car Project: Unsuccessful land acquisition model
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LegendWest Bengal State
Tata Group
Local People
Rent Seeking Agents incl. Political
Media
Stage 1
Stage 2
Stage 3
Key Characteristics of Unsuccessful Land Acquisitions
♦High Profile Promoters (Tuticorn)♦Acquisition of Fertile Land (Keonjahar)♦ Slow Acquisition Process (Gopalpur)♦Unacceptable Rehabilitation Package (Lanjigarh)♦No Direct Talks with the Locals (Kalinganagar)♦Aligning with Political Parties (Singur)♦Wrong Communication / Confusing Signals
(Torpa Vs Kasaphal)
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Project Brief Sponsor Name Place Status
Car Plant Hyundai Motors Irungattukottai (Tamil Nadu) Successful
Port & Special Economic Zone Adani Group Mundra (Gujarat) Successful
Power Plant Navin Jindal Group Raigarh (Chhattisgarh) Successful
Special Economic Zone Mahindra Group Bagru (Rajasthan) Successful
Special Economic Zone Mahindra Group Maraimalainagar (Tamil Nadu) Successful
Power Plant Sajjan Jindal Group Barmer (Rajasthan) Tending towards
Success
Power Plant Moser Baer Chandil (Jharkhand) Tending towards Success
Steel Plant Sajjan Jindal Group Salboni (West Bengal) Tending towards
Success
List of Industrial Projects of Private Business along with their Status
JSW Bengal Steel Project: Successful land acquisition model
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LegendWest Bengal State
Jindal Group
Local People
Agents / Middlemen / Outsiders
Media
Stage 1 Stage 2
Stage 3
Key Characteristics of Successful Land Acquisitions
♦Avoid Productive Land (Salboni)♦Open Direct communication channels with
Locals (Maraimalainagar)♦ Equitable benefit sharing (Salboni & Barmer)♦No (formal) Political alignment (Raigarh)♦ Coordinated Corporate Communications
(Irungattukotai)
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XLRI Jamshedpur Working Paper No. 08-11; Available at: http://ssrn.com/abstract=1295407
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Indigenous communities•Significant Influence, but may vary•Free, Prior, Informed consent a must•Must be involved prior to project development
Transient community
•Less Influence•Consultation, not consent•Can be approached simultaneously with project development
NGOs
•Can have strong influence•Can influence media•Consent not required but consultation suggested•Consultation prior to or during project development
Non-Indigenous local communities
•Can have significant Influence•Consent preferred•Consultation Must before project development
High influence
Low influence
Social Consent Required
Consultation preferred
Stakeholder Engagement Framework (Refer: Ethical Funds Company, 2008)
