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Workshop on Land Acquisition, Resettlement and Rehabilitation in Urban Development and Redevelopment, September 10-13, 2006

TABLE OF CONTENT Summary of Discussions Summary of Deliberations Annex 1 – Summary of Presentations Annex 2 – Background Note Annex 3 – List of Participants Annex 4 - Agenda

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SUMMARY OF DISCUSSIONS1

Background 1 The future growth of the fast expanding Indian economy is significantly linked with the progressive transformation of its urban sector, which makes an important contribution to the economy. The transformation of the key urban centres into world class cities in a way holds the key to India’s future capacity to effectively compete with the emerging global players in the region and reap the benefits of globalisation. Such a transformation calls for well planned strategies for restructuring urban space in a way that redefines the direction and pace of urban development and augments economic growth in the country. Urban development in India, as in many other South Asian countries, except for a few good exceptions, has hitherto been largely unstructured in nature. Characterised by large informal settlements, anomalous expansion of housing, regular traffic congestions, and basic services choking at their capacity levels, Indian cities are faced with enormous challenges of redevelopment and expansion. The process of urban development if appropriately restructured could remove roadblocks and create scope for expansion of key economic activities, and make cities more liveable through initiatives aimed at optimal use of urban space. The process of such urban transformation will invariably require relocation of large populations living in informal settlements. 2 The informal settlements in Indian cities have intensified over many years, driven by accelerated urban migration in the last few decades. These mushrooming informal settlements are often characterized by unique social and cultural diversity and sustained by a diversified informal economy, both feeding into and supported by the formal sectors of the urban economy. Well-planned urban development in the context of the complex and largely informal socio-economic fabric of Indian and South Asian cities at large turns out to be a difficult and challenging proposition. Provision of much needed urban infrastructure for improving connectivity, services; and internal restructuring of cities for optimal urban aggregation in order to sustain the economic dynamism of cities as they grow confronts populations living in large informal settlements. Successful resettlement of people living in large informal settlements will open up space for diverse urban development activities, and on the contrary, failure to do so will intensify problems associated with infrastructure deficit, thus obstruct the process of urban development resulting in loss of growth opportunities. This calls for strategic reflection on ways and means of integrating development, redevelopment and resettlement processes for planning and engineering urban development in the light of existing and upcoming challenges and opportunities.

1 These proceedings were prepared by Mr. Satya Mishra, Social Scientist and reviewed by Mesrss. IUB Reddy and Hubert Nove-Josserand, The World Bank.

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Rationale 3 World Bank has been supportive of India’s urban infrastructure projects and has been involved in the process of reflection and analysis of urban development and the future of India’s cities. The World Bank assisted Mumbai Urban Transport Project (MUTP) undertaken in Maharashtra, one of the largest urban transport projects implemented in the country, involves relocation of about 20,000 households making it perhaps the largest urban resettlement project in the world. The World Bank and the Government of Maharashtra have also been partners in the process of broader urban development planning in Mumbai, the capital of Maharashtra and the financial hub of India. This involvement has been a source of learning, which called for deeper reflection on issues of urban development, redevelopment and resettlement in the interest of greater understanding through sharing of diverse urban experiences, strategies, policies and perspectives. It was felt that reflection on resettlement of large population groups living in informal settlements in the broader context of urban development can help address broader issues of urban development in India. Objectives of the Workshop 4 The objective of this workshop was to reach a consensus, or at least a common understanding on approaches to resettlement and economic rehabilitation in urban development which are truly developmental and forward-looking. This workshop, far from being intended to be a forum for debate on issues relating to lender policy or the legal provisions of sovereign governments, was a collaborative exercise aimed at working out approaches and methods, seeking to build socially and economically sustainable outcomes where urban development becomes more effective and equitable. The aim was to understand cities, their growth, challenges they pose and opportunities that they offer in the light of global experiences an to reflect on generic issues related to urban resettlement in their economic, social, cultural, & technical dimensions. 5 The specific objectives of the workshop were to: 5.1 Reflect on challenges of urban development and resettlement in India against the

backdrop of similar experiences in this region and other parts of the world; 5.2 Discuss various polices and perspectives focussing on key themes and issues

(such as urban resettlement, restoration of livelihoods and incomes, and urban economic growth; legal and policy frameworks on land tenure and land use, mechanisms for land redistribution, real estate markets and ownership; steps needed for effective redevelopment ) for reaching a shared understanding on urban resettlement and development in the Indian context; and

5.3 Broaden scope for greater collaboration and partnership between World Bank and India for augmenting the process of sustainable urban transformation in the country for higher growth and greater equity.

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Participant Profile 6 The workshop brought together senior government officers working at the level of policy making, overall operation coordination, and senior management at the implementation level representing key Central and State government departments and agencies dealing with resettlement and urban development2. Representatives from NGOs, officials from the Bank and the Inspection Panel, and academics working in the field of urban development, resettlement, and social safeguards in various parts of the world also took part in the workshop. The participation of government officers playing a key role in decision making at policy, coordination, and implementation levels facilitated a sharing of diverse experiences and perspectives within the Indian context, enriched further by sharing of global experience. The participants with their diverse experiences and expertise made possible a comparative analysis of macro-level trends in the light of specific micro-level issues. Framework of the Workshop 7 A background note was earlier prepared and circulated among the participants, based on learning gained from urban development and resettlement experiences. Some workshop presentations included cases studies on urban development and resettlement from China, Thailand, India, Colombia, and the Ivory Coast. Other presentations focussed on specific issues, policies and perspectives of government departments/ agencies, NGOs, and the Bank. Presentations made by the departments of Government of India reflected on overall policy perspectives on R&R and urban poverty alleviation, whereas presentations made by the representatives of state level agencies focussed on implementation experiences, outlining challenges encountered and solutions explored in the local contexts of Indian cities of Chandigarh, Mumbai, and Bangalore. 8 The agenda for the workshop was designed keeping in view key themes and issues identified in the background note. The workshop was accordingly divided into presentation and discussion sessions. The key themes around which presentations were made and discussions held included the following.

• Urban development, redevelopment and resettlement, • Issues in R&R/urban development policy and practice in the Indian context • Legal and technical issues relating to R&R in the Indian context • Resettlement, development opportunities, and livelihood improvement • Land and property related issues in resettlement and urban development • R&R implementation process

9 Group discussions were held on the following themes:

• Development Opportunities and Livelihood Improvement; • Land and Real Estate; and • Resettlement Implementation in Urban Development Context.

2 List of participants available in Annex-3

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SUMMARY OF DELIBERATIONS: Inaugural Session 10 Following self introduction by the participants, introductory remarks were made by Mr. Rachid Benmessaoud, Operations Adviser for India, The World Bank and Mr Ramanand Tiwari, Secretary for Urban Development, Government of Maharashtra, during which they explained the objectives and rationale of the workshop and indicated key themes for discussion. The Bank representative said that resettlement and rehabilitation of people living in informal settlements remained a key aspect of urban development process, which posed enormous challenges of providing the former with formal housing, and restoring their livelihoods and incomes. The Bank and the Maharashtra government representatives agreed that they were able to identify some key issues and lessons learnt during the implementation of MUTP, which included a large resettlement component. Despite all difficulties, the project had managed to reach an advanced stage with the majority of affected households (14000) already resettled. At this juncture, the relevance of reflecting on issues encountered and lessons learnt during implementation could not be overestimated. The Bank and the Government of Maharashtra had jointly organised the workshop to reflect on key issues and reach common grounds, and reduce possible gaps in perception. The Secretary for Urban Development, Government of Maharashtra explained local constraints faced by Maharashtra in adhering to generic resettlement procedures. Both the organisers agreed that common issues such as land acquisition, urban infrastructure, and livelihoods deserved closer attention in the larger context urban development. The Bank official indicated the course of the workshop mentioning briefly about themes for discussion during different sessions. 11 Following the introductory remarks, Mr David Dowall3 in his presentation explained intricate links between urbanisation and economic growth in India; and called for the need to balance urban development and economic growth with equity through proper resettlement and rehabilitation. Highlighting the centrality of restructuring of space to urban development, he explained why resettlement becomes such an important issue. Successful handling of resettlement can bring in new development opportunities and accelerate future growth of Indian cities. Emphasizing that urbanisation was an unavoidable global trend, he cautioned that India’s ability to successfully compete with the newly emerging economic leaders in the region will largely depend on its capacity to transform its cities, which call for futuristic ‘urban development strategies’ to address emerging development, redevelopment and consequent resettlement challenges.

3 Professor, City and Regional Planning, University of California (Berkeley), USA

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12 Mr Rachid Benmassaoud stressed the need to reach a broader common understanding on urban resettlement issues, setting the tone for presentations and discussion in the workshop. Highlights of Presentations and Discussions 13 Resettlement experiences shared in the workshop were drawn from urban development projects implemented across the world including Ban Mekong (Thailand), Abidjan (Ivory Coast), Tianjin (China), Bogota (Colombia), Mumbai, Chandigarh, and Bangalore (India). Out of these, the case studies of Abidjan, Tianjin, and Bogota were from Bank-assisted projects. Listed below are presentations made on policy related issues by the Ministries of Rural Development, and Housing and Urban Poverty Alleviation, the Government of India; the Government of Karnataka, the Tata Institute of Social Sciences, Mumbai, India, NGOs, and the Bank.

• Government of India’s R&R Policy and Approach • Employment and Poverty Alleviation in the Context of Urban Development in

India • Role of Urban Local Bodies in Supporting R&R • Review of Law and Policy on Land Acquisition, R&R and Slum Development in

India • NGOs’ Views on R&R in the Context of Urban Development • World Bank Policy on Social Safeguards (R&R)

14 The presentations on generic issues were supplemented by comparative analysis of trends and practices during discussions. The case study presentations generally followed a common pattern, introducing the context, project outline, and then explaining specific problems encountered, strategies adopted, and lessons learnt. A summary of all the presentations are appended in Annex-1. 15 The deliberations and the main outcomes have been captured under themes given below. Integrating Urban Development/Redevelopment with Resettlement 16 Restructuring land use patterns in Indian cities requires resettlement of thousands of families living in informal settlements, which pose major road blocks to urban development. This enormous challenge can be met only if resettlement is treated as a development opportunity. The case of urban redevelopment in Bogota (Colombia); Tianjin (China), and Ban Mekong (Thailand) verified the truth of this argument. All three cities faced stagnation beyond a certain point of growth, which called for planned resettlement in order to clear urban space for vital infrastructure facilities. Systematic resettlement efforts within a larger strategy of planned urban transformation helped to remove old formal and informal settlements in favour of optimal reorganisation of the

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city space for higher communicability, better housing, and growth in economic activities. If Bogota showed the ills of unstructured urban expansion driven by long term factors and contingencies, and difficulties of having to redevelop cities at a later stage, Tianjin exemplified how best to reorganise urban space by integrating resettlement with urban development. Mumbai was recognised as a city where the need for planned urban redevelopment was most acute, which posed the challenge of having to shift large populations living in informal settlements away from vital space required for essential urban infrastructure through a citywide resettlement process. Participants agreed that without a well integrated framework for resettlement and urban redevelopment, Mumbai could well slip into a state of disarray and decline. They stressed the urgent need for reworking existing legal and policy frameworks and redesigning current strategies for urban development and resettlement in a holistic manner, which has been recorded under specific themes below. 17 Key Issues and Recommendations:

• Resettlement issues should be treated as an integral aspect in urban planning; • City-wide resettlement plans should be developed as part of urban development; • Resettlement should be seen as a development opportunity.

R&R in India Context: Polices, Legal Frameworks, Guidelines 18 India developed its National Policy on R&R (NPRR) in 2003, other than which, there is no other legal framework on R&R at the national level. States such as Maharashtra and Karnataka have their own legislations; Orissa, Chhatisgarh, Andhra Pradesh and Mdhya Pradesh have their own polices. The Indian courts have held that the state’s primary duty is to resettle and rehabilitate persons affected by land acquisition. The courts make no distinction between temporary and permanently affected people when it comes to involuntary ouster. The weakness of the NPRR lies in its being binding only on central agencies and not the states, as land related matters fall in the domain of the latter. 19 Upcoming National Level Policy Changes: The Secretary, Ministry of Rural Development (MoRD), Government of India in her presentation informed that the Central Government was in the process of modifying the NPRR reflecting emerging needs and concerns. The policy change was guided by considerations such as having in place a more consultative R&R process, which would reduce distress and ensure disbursal of fair compensation; and evolve an acceptable R&R framework with a clear time schedule to reduce delay and disputes. The objectives would be to have in place a mechanism for carrying out analysis of potential social and economic impacts and choose the least displacing alternative, a point also reflected in views expressed by NGOs. Participation of NGOs should be a key element in the R&R process; there should be grievance redress mechanism to address needs of the vulnerable project affected people and an Independent Commission to monitor the process of R&R, a view seconded by NGOs. The MoRD representative stated that R&R package should be developed keeping in view issues such as gender, specific needs of the affected tribal communities, employment opportunities,

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and compensation for loss of livelihoods through benefit sharing, which called for further reflection. A key perception emerging out of the presentation was that land-based resettlement was not easy to implement in case of urban and linear projects. Emphasis was laid on provision of basic services for the resettled community enabling them to cope with relocation. 20 Discussion on the World Bank Social Safeguard Policy, the Indian Government’s policy intent on R&R issues, and views expressed by NGOs4 showed an emerging consensus on different aspects of R&R principle and procedures with emphasis on a consultative process, participation, advanced potential adverse impact analysis ahead of project designing to minimise displacement, grievance redress, system of independent monitoring, and concern for addressing livelihood losses. 21 The need for having an overall R&R framework for different projects across the country was felt by most of the participants. The presentation on NGOs’ views emphasized obtaining ‘informed participation and consent’ of the affected people as an integral part of R&R planning and implementation process, which was in consonance with the WB R&R framework. The NGOs felt recognizing customary rights of people to shelter and livelihood was important, which also reflected in the presentation on the WB Social Safeguards Policy. Indicating Indian Government’s policy intentions, the MoRD called for special attention to vulnerable tribal communities, who have traditionally group access to natural resources, but lack formal rights. Though the MoRD did not specifically argue for formal recognition of customary rights, it underlined the need for understanding of community-based resource use while implementing R&R for indigenous communities. 22 Key issues and Recommendations:

• A uniform policy/legal framework on R&R in the country will help set down minimum standards for resettlement and rehabilitation and thus remove confusion across the states and various sectors of intervention.

• Prior assessment of likely adverse social and environmental impacts, if made mandatory at the planning stage, will help design projects causing minimal displacement.

• Norms such as participative planning and implementation, public consultation and information, civil society involvement, grievance redress, independent monitoring, livelihood restoration and vulnerability reduction should be integral to any R&R policy.

• Recognition of customary right/access to resource use is important in case of resettlement and rehabilitation of indigenous populations.

4 A presentation was prepared by Prof. Parmeswaran, Director, Tata Institute for Social Sciences (TISS), Mumbai on the basis of views expressed by NGOs in a special consultation with civil society organizations convened by the Bank prior to this workshop at New Delhi in September 04, 2006. The presentation was made through tele-conference during the workshop.

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R &R Package: Development Opportunities and Livelihood Improvement 23 Issues of development opportunities and livelihood improvement remained a major theme of discussion during the workshop. The presentation on the National Policy on R&R stressed the need for addressing livelihood issues. Protection of livelihoods was highlighted as an important issue in the context of urban resettlement involving slum dwellers the Ministry of Housing and Urban Poverty Alleviation, Government of India, which emphasized the crucial link between urban poverty and urban slums. According an estimate, the urban poor in India numbered 67 million in 2001 whereas the people living in urban slums numbered 62 million, which indicated that a majority of slum dwellers were poor. The government of India’s initiative at reducing urban poverty was primarily targeted at the slum dwellers. 24 The presentation made on urban development and resettlement by Prof Dowall showed that restoration of diverse livelihoods during resettlement of slum populations posed both challenges and opportunities in the urban context. If diversity of livelihoods was a challenge, the presence of a vast labour market and scope for diverse business activities in an urban setting offered new economic opportunities. The Abidjan (Ivory Coast) experience showed that a flexible model of resettlement based an assessment of local needs and capacities could address livelihood needs of the people better. 25 The group work on the theme of “development opportunities and livelihood options” focussed on key issues such as:

• Steps to protect sustainability and survivability of displaced businesses, • Key variable for differentiating across various categories of affected enterprises, • Generic resettlement remedies for different types of affected enterprises, and • Consultations for effective and timely mitigation of potential problems.

26 Recommendations were made by the groups at the end of discussions. 27 Steps such as holding consultations to find innovative resettlement solutions through dialogue and negotiation with involved stakeholders, offering resettlement package ensuring minimum economic sustainability of alternative business opportunities within a framework of differentiated resettlement packages were considered key to reducing impoverishment risks. The participants differentiated affected enterprises into title holders, and non-title holders in poor and non-poor categories suggesting that the legality of tenure and actual vulnerability levels should form the basis of resettlement packages provided for income restoration. Resettlement package for titleholders could be a mixed bag of cash compensation and alternative housing. Some suggested that the package for non-poor title holders should be limited to cash compensation while giving poor title holders compensation with additional rehabilitation assistance for protecting their livelihoods. In the non-title category, poor encroachers could get alternative shop for livelihood restoration. The non-poor encroachers should get the minimum R&R package

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for livelihood restoration. More consultations were recommended as means for facilitating smooth resettlement of non-titleholders. 28 The suggestion for providing income restoration assistance for non-title holders, especially those in the non-poor category was not favoured on the ground that it was beyond the state’s capacity to bear the costs, and secondly, because in the typical urban context of Mumbai such benefits might encourage more illegal encroachments. Some participants also argued against it on the ground that non-poor encroachers were getting unfair advantage in the market vis-à-vis their law abiding counterparts, and argued that honest taxpayers should not be made to bear the cost of income restoration of illegal non-poor encroachers. Such encroachers, they argued, have already made undue profits and must accept minimum livelihood restoration assistance at par with the poor encroachers. Other suggestions were made relating to ensuring basic livelihoods for all shopkeepers through steps such as providing alternative shops with available additional area at a premium; extending vocational training, selecting resettlement sites close to main roads; carrying out BSES and holding early consultations as a part of resettlement planning. 29 Key issues and Recommendations:

• Livelihood restoration in urban resettlement process posed challenges, and at the same time, offered new development opportunities.

• Consultations with affected groups and stakeholders can help identify innovative methods for restoring affected livelihoods and incomes.

• Offering income restoration assistance to non-poor commercial encroachers in the resettlement process may encourage further proliferation of illegal/informal settlements adversely affecting urban development.

• A differential R&R package for livelihood restoration based on an assessment of legality of tenure and actual vulnerability levels could be a viable option.

• Steps such as identifying suitable resettlement sites, offering additional shop area at a premium, and vocational training can help strengthen livelihood restoration.

Freeing Land and Real Estate Market for Urban Development 30 It was suggested that urban redevelopment demands twin strategy of “building up and building out”, involving re-aggregation of existing built-up space for intensive development in the central zones, and fresh expansion in new areas. All cities require additional space for development and expansion, which unavoidably involves resettlement. The experience of Bogota, Tianjin, and Mumbai, all pointed at the challenge of having to deal with land deficit for urban development at some stage through planned redevelopment and resettlement initiatives. In this context, one group discussion was conducted focussing on key issues such as:

• Changes required in land and real estate planning to unlock the supply of land; • Market solutions (financial tools) for dealing with the resettlement issue;

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• Specific design and resettlement planning in view of complexities associated with multiple interventions for land development, housing, and basic services.

31 Unlocking Land: The participants felt, in the Indian and especially Mumbai context, existing laws and regulatory frameworks inhibited urban development, and therefore, needed to make way for simpler laws and regulations conducive to the growth of the land market. The participants called for changes in the Urban Land Ceiling Act, Rent Control Act, Central Government regulations (relating to Coastal Regulatory Zone, No Development Zone), and relaxation of rules on Floor Space Index (FSI), and TDR (Transfer of Development Rights). Some suggested a more flexible land use policy and a simpler regime for property title regulation. The MoRD’s presentation on India’s R&R Policy showed how the government agencies faced difficulty in handling Land Acquisition (LA) due to an imperfect system of land recording and land management. Without a more efficient and transparent land management system in place, it was felt, finding additional land for urban development would remain an uphill task. Information regarding land availability, maintenance of community-level database on land use and land ownership, and easy accessibility to information were suggested as steps to open the land market. The participants also argued that the procedure for housing needed to be considerably simplified5. Many participants felt private players should be encouraged with the government playing a facilitator’s role, and argued that public-private partnership held the key to unlocking land for urban redevelopment/development. 32 Financial Tools for Resettlement: The Bogota experience showed how the presence of an active real estate market could provide space for assisted resettlement offering a bigger role to market players and wider choice to affected individual families. The Tianjin experience showed how the government could adopt market solutions for providing the affected people with a wider choice and motivate them to opt for better housing with additional investments. The participants felt non-tradable/non-transferable resettlement vouchers could be an answer; others opined that provision of conclusive title and assistance for making a choice of available lands could be a good option. Most agreed that there was a need to make an assessment of market demand for land and encourage land supply through appropriate policy incentives. 33 Project Design and Planning Issues in Resettlement: Participants favoured development of city-wide resettlement plans, integrating resettlement in development plans (DP) and country and town planning (CTP); and having in place a multi-sector team to plan and implement urban resettlement. Some argued for treating resettlement as stand alone projects, whereas other favoured resettlement to be an integral part of development projects. Most agreed that problems of institutional coordination affected resettlement planning and implementation and felt a nodal body should be in place for implementing well integrated resettlement strategies. 34 Land Acquisition: The presentation on the existing legal framework for LA showed several problems associated with the Indian LA Act, 1894, reason why states like 5 In the state of Maharashtra, at present one requires 54 no objection certificates from regulatory agencies for building a house.

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Maharashtra and Tamil Nadu have taken recourse to alternative legislations on slum development for acquiring land. Shortcomings in the LA Act identified included: rigid process for declaration of intent and acquisition, problems associated with methods of valuation, the lengthy time schedule. The lack of clear definition of ‘public purpose’ and ‘eminent domain’ in the Indian LA Act allowed the government even to acquire land for private enterprises, whereas the private agency requiring land should ideally follow the market process. During the discussions on India’s R&R Policy, it was indicated that a key objective behind the Government’s moves to amend the National Policy on R&R, 2003 was to define ‘public purpose’, and specify limits to the application of LA in order to minimise displacement. The MoRD pointed at the diverse and outdated nature of land administration systems in Indian states, which needed to be modernised. 35 Discussion on ways in which to make LA process more transparent, flexible and simple resulted in consensual recommendations for inclusion in the LA Act of provisions for negotiated settlement, rationalisation of stamp duty, clear guidelines for realistic valuation of land through computation methods reflecting the market trends, and removal of multiplicity of rules and agencies. The participants agreed that compensation for both land and asset should be paid at replacement value. 36 Key Issues and Recommendations:

• Re-aggregation of urban space through redevelopment and resettlement is necessary for future development and expansion of Indian cities.

• Existing laws and regulatory frameworks inhibiting future urban development need to be modified to accelerate growth of land and real estate market.

• A flexible land use policy, encouragement to private players; private-public partnership; simpler property title regulation regime; transparent, efficient, and updated land administration system are required to unlock land for future urban development.

• Steps such as providing non transferable and non-tradable resettlement vouchers; offering conclusive title along with assistance for choosing from available lands; and encouraging land supply through appropriate policy incentives are means to enhance market participation in the resettlement process.

• The LA Act needs to be modified making the process simpler, cheaper, flexible, and transparent reflecting market trends and enlarging scope for negotiated settlement.

Resettlement Strategies and Implementation Issues in Urban Context 37 Presentations on urban resettlement experiences underscored the point that diverse contexts with a unique constellation of micro-level factors posed specific challenges and opportunities, which rendered the ‘one size fits all’ principle unworkable. Flexibility and innovation therefore remained the key to success of urban resettlement strategies. The Bogota (Colombia) experience presented a case of ‘assisted resettlement’ in which the implementing agency played a facilitative role. The Abidjan (Ivory Coast) case illustrated

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the key role of the affected people in self-construction for houses for resettlement. The Tianjin experience offered an example of specific role played by market players (estate companies) in the resettlement process under overall state coordination. The Ban Mekong experience exemplified a more radical bottom-up approach marked by community-based planning and implementation. The Mumbai experience on the other hand represented a case of mega resettlement projects, in which a range of standard and innovative tools (TDR) were used. Group discussions focussed on issues identified during experience sharing in order to identify generic steps required for a successful R&R implementation strategy in the Indian urban context. 38 Participation, Consultation, and Information Disclosure: The Ban Mekong and Abidjan resettlement experiences showed how participative resettlement processes worked better. Consultation and participation minimised risks of resistance and conflicts, offered innovative local solutions, enhanced community ownership, improved project quality, and facilitated timely completion of projects. The Ban Mekong, Abidjan, and Mumbai experiences showed how NGO participation had positively contributed to the implementation process. The participants felt the role of NGOs was useful for bringing in social mobilisation and community development skills into the implementation process. All the resettlement experiences, which involved formal and informal consultation processes, showed how this contributed to informed decision making on the part of both the implementing agency and the affected people. The participants felt stakeholder consultations and negotiations were essential at both planning and implementation stages. Consultative processes helped protect rights and address concerns of the affected people, and enabled the implementing agency to explore innovative solutions. The participants emphasized information disclosure on all aspects of resettlement as important for ensuring transparency, enhancing credibility, and enabling informed choices. 39 Adverse Impact Assessment, Base Line Survey: During the course of discussions on various themes and experiences, emphasis was laid on participative Impact Assessment (IA) surveys supplemented by technical support from experts as a tool for minimising displacement. The participants felt transparent and participative IA and baseline survey recording impact and identifying the affected people was the key to realistic resettlement planning and successful implementation. They added that outcomes of such exercises should be disclosed for the information of PAPs and other stakeholders. 40 Involvement Multiple Stakeholders: The Ban Mekong experience showed how the involvement of multiple stakeholders, such as community groups, NGOs, research and training institutes, community architects, and local bodies made the implementation process more effective and inclusive. The Bangalore (India) experience showed how the urban local bodies played an important role throughout the implementation cycle enhancing effectiveness and accountability. The participants felt the involvement of multiple stakeholders in the implementation process posed challenges of coordination, however, offered opportunity for achieving better outcomes through synergy. 41 Capacity Building: Ban Mekong and Bogota experiences highlighted the importance of capacity building in handling complex urban resettlement problems and issues. In

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Bogota, social professionals were hired and trained to work as facilitators in the implementation process, whereas in case of Ban Mekong, networking with research and training institutes provided a continuous institutional linkage for capacity building. The need for sensitising field level implementing staff on R&R issues and enhancing their social development skills was emphasized. 42 Grievance Redress, Independent Monitoring and Evaluation: In the course of discussions on policy and implementation issues, the participants agreed that mechanism for grievance redress was essential for addressing the concerns of the affected people, especially those in the vulnerable category. Suggestions were made for instituting an independent monitoring mechanism in order to make the resettlement process transparent and accountable. External evaluation of resettlement impacts was considered a useful tool for assessing effectiveness of the implementation strategy. 43 A group deliberation conducted to identify key steps required for successful implementation of urban resettlement strategies focussed on the following issues:

• Exit strategy for resettlement implementation, • Specific steps needed to enhance effectiveness of implementation strategy, and • Problems encountered during the implementation process.

44 Given below are suggestions/ recommendations made by different working groups. 45 Exit Strategy: Key indicators identified for implementing the exit strategy included: provision of security of tenure of resettled households, delivery of key entitlements including compensation and other rehabilitation assistance, restoration of livelihoods, satisfactory self sustenance of resettlement colonies, completion of all civil works at resettlement sites (water, electricity, connecting roads), formation of housing societies, completion of the post-resettlement support activities, improvement in physical environment and economic conditions, and impact assessment. It was felt that the implementing agency could exit from the resettlement site when at least 75% of these indicators have been fulfilled. 46 Effectiveness of Implementation Strategy: Some of the preconditions identified for enhancing the effectiveness of the implementation strategy included: transparent procedures and rules, resettlement implementation plans, robust base line survey, provision of identity cards, grievance redress mechanism, mechanism for participation, public information centres for information disclosure, improved support services, formation of housing societies, hiring of estate managers/professional agents for extending hand-holding support to the resettled households, and provision for commercial exploitation of resettlement sites for their sustainable self-management. Some participants felt alternative accommodation should be given only on non-transferable / non-tradable basis in order to prevent re-encroachments. No consensus was reached on the issue as others felt this was against the basic market process.

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47 Difficulties Encountered in the Implementation Process: Difficulties encountered in the implementation process listed by the participants included: interference from the political quarters, lack of a uniform R&R policy framework, inadequate institutional coordination on account of multiplicity of agencies involved, weak enforcement of encroachment prevention laws, changes in the project design in the middle of the implementation process, large populations living in informal settlements, dealing with employees displacement from their jobs during the course of implementation, and excessive supervision by the funding agencies. 48 Key Issues and Recommendations:

• There is a need for creating room for flexibility and innovation in the R&R implementation framework.

• Participation of PAPs, NGOs, and local bodies at planning and implementation stages and pubic consultation and disclosure of project related information, grievance redress mechanism, independent monitoring and evaluation are necessary to enhance transparency, credibility, accountability and enable informed decision making.

• Sensitizing field level staff on R&R issues and enhancing their social development skills is crucial to improving programme quality.

• Security of tenure, delivery of key entitlements, restoration of livelihoods, self management of resettlement sites, completion of civil works and provision of basic services, post resettlement support activities, improvement in physical and economic conditions, and impact assessment are indicators for project exit.

• Transparent procedures and rules, RIPs, robust base line survey, identity cards, PICs, support services, post resettlement support, and commercial exploitation of resettlement sites for sustainable self-management are steps to improve effectiveness.

• Providing alternative accommodation on non-transferable / non-tradable basis may help prevent re-encroachment.

• Lack of adequate institutional coordination, uniform procedures; political interference, weak enforcement of encroachment prevention laws, and large affected populations pose challenges affecting the implementation quality.

Outcome and Way Forward 49 In the closing session, the organisers of the workshop, bank officials and representative from the Maharashtra government made a joint declaration recording key lessons learnt during the workshop. It was agreed that the workshop provided a good opportunity for sharing experiences, problems, and opinions on various aspects of urban resettlement. It was also agreed that urban resettlement was a complex issue and no readymade solutions were to be easily found. However, it was felt that continuous dialogue and negotiation among wider stakeholders could offer opportunities to explore innovative solutions to problems encountered in the unique urban setting of Mumbai. It was felt that, differences in perception on certain issues notwithstanding, exchange of

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ideas and experiences during the workshop had helped create new ground for common understanding on some key issues. The workshop also helped to set in motion a process for working towards a shared understanding on issues perceived as contentious in view of the constraints imposed by existing legal-institutional frameworks. 50 Agreed Views on Key Issues: In the course of discussions, a consensus was reached on a number of key issues. It was agreed that physical and spatial transformation needs are very large for urban development and that displacement of population becomes a necessary fact of life as cities grow. It was felt that resettlement in cities can and must be considered as an uplifting endeavor rather than a charitable compensation. This vision will lead the definition of the methods how to plan and implement land acquisition and resettlement. Up front planning at appropriate scales, including at the regional scale, and taking in consideration also the social impacts was considered important. The participants felt land acquisition and resettlement will be easier if done as much as possible on the basis of individual choices of the impacted people and by using the market mechanisms. Land acquisition through negotiation proved to be easier in some cases than through the use of the LA Act, although in some cases the law provided an efficient means to limit political pressures. Reforms aiming at removing regulatory constraints on land use and management would improve fluidity of the land market. It was felt that R&R should be minimized and LA and displacement of population should be done as much as possible through negotiation and on a voluntary basis. Sustainability of the resettlement depended largely on the affected people gaining a sense of ownership over their new residence and neighborhood; this could be gained through active participation at the planning stage and through pre-investment by the beneficiaries. The experience of Ban Mekong effectively brought forth this point. Distinction made between title holders and non title holders brought in by the Bogota experience appeared meaningful; title holders should receive compensation for their property and assistance, while non title holders would receive assistance only. Robustness of the base line survey and efficiency of the data management system were considered essential for a smoother implementation of the R&R process. Transparency, active consultation and delivery on commitments made publicly were considered essential. It was felt that building new tenements and relocating people did not extinct the political responsibility of the Government. There was a need to assist to a certain degree relocated people to sustain life in their new environment, and therefore to define an exit strategy, which could involve the assistance of a professional as post-resettlement agent. 51 Issues Lacking Consensus: Difference of perception remained on two key issues: restoration of livelihoods for large businesses without formal title and social affordability of projects. Restoration of livelihoods of resettled people was accepted as a key component of a successful resettlement and rehabilitation strategy. However there was no consensus on the necessity to full restoration of income in case of non-title holder businesses of large size. Some participants feared that such restoration in full, not only could lead to significant cash outlay in large slum areas, but more importantly would be seen as inequitably favoring large size encroachers, usually non-tax payers, versus a significant part of the population that endures long commute to respect the law and live in a formal settlement. Secondly, while participants generally recognized that urban

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infrastructure projects may have large social impacts in addition of the economic and environmental ones, which need to be appreciated at the planning stage, there was no real consensus on the extent to which such consideration should prevail. Questions were raised as to if, in cases where a desirable resettlement strategy was very costly, the project should be modified or even avoided. 52 As way forward, it was agreed that efforts shall be made to continue discussions and joint efforts with the goal of attaining greater understanding on principles for satisfactory implementation of land acquisition, resettlement and rehabilitation for urban development. In that perspective, it was discussed to create a task force that would better formulate the principles on which a consensus was reached, which would deepen the discussion to better understand the causes of the remaining disagreements and try and solve them. It was understood that such effort will be done within the framework of the relevant Bank policies and the relevant Indian institutional frameworks and constraints.

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Annex-1

SUMMARY OF PRESENTATIONS 1. Cities and Growth: Challenges of Urban Restructuring and Resettlement6 1.1 Urban expansion, population growth and economic development, and restructuring of city space are closely interlinked. The experience of cities such as New York, Tokyo, Seoul, Hong Kong, Singapore, Shanghai show that, varied patterns of development notwithstanding, all cities grow along a trajectory of urban agglomeration marked by internal restructuring and outward expansion. Economic growth and change drives urbanisation resulting in growth of population and multiple activity centres in cities. Accommodation of economic development and population growth requires expansion and internal restructuring of urban space marked by higher density development, emergence of diverse activity centres and changes in land use. The process of urban restructuring and development demands planned redevelopment and resettlement, which bring in challenges of balancing growth and equity in the redevelopment and resettlement continuum through strategic urban planning. 1.2 India’s urban economic development reflects a gradual demographic transition marked by rapid increase in the rate of growth of urban population and a slow decline in the growth of rural population. India’s fast urbanisation process and its rapid economic growth are mutually reinforcing in nature. The country’s economic development is driven by its key urban centres, and vice versa. The Indian cities, which accommodate 33% of the country’s population, account for 75% of its gross domestic product (GDP). Cities have become leading destinations for new investments with a major portion of foreign direct investment (FDI) focussing on real estates. This means the Indian cities will experience a significant increase in population and employment, incomes, urban land development, demand for housing and real estate facilities, and infrastructure. This brings in new challenges and opportunities for cities in India, and its economy as a whole. The current urban growth pattern in India, marked by fast expansion of the service sector, increasing motorization, and changes in patterns of space consumption pose challenges such as making land available for an expanding housing sector, infrastructure for transport, basic services, governance, redevelopment and resettlement. 1.3 The future of Indian cities depends on building proper urban transportation systems (roads, rail, mass transit networks, airports, and logistics centres), water and wastewater systems, educational and healthcare facilities, and civic amenities. Urban infrastructure requirements are enormous as the urban population is poised to grow at about 12 million persons per year. Achieving 100 percent water supply coverage and 75 6 Presented by David Dowall, Professor City and Regional Planning, University of California (Berkeley), USA

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percent wastewater coverage alone would cost USD 12 billion; building urban transport investments would cost another USD 50 billion. Land requirements for such infrastructure investments will be significant. 1.4 Successful urban transformation is symbolized by a “virtuous policy cycle” wherein positive indicators such as high-GDP growth in cities, more built up space, increase in property values and taxes, increase in infrastructure investments are interlinked. An urban planning approach instead of a project oriented approach characterized by sectoral approach to floor-space index (FSI), focus on transit nodes, improved infra-structure, and improved public revenues will enable Indian cities to successfully engineer urban development. Such a planned approach will have to invariably address the issue of redevelopment and resettlement, which requires reflection on resettlement policy issues in a much broader context focusing on economic benefits of infrastructure investment, productivity enhancement, and livability of cities. Planning resettlement strategies should take into account providing options for in situ development and financial compensation, and linking resettlement compensation with project benefits. 2. Evolution of Indian Policy Framework on Resettlement and Rehabilitation7

2.1 The jurisdiction of land related matters lying with states under the Indian constitution explains inter-state diversity in legal approaches to ‘land related matters’ in the country. The federal government’s competence to formalise approaches to land is still under discussion. The broad countrywide statutory framework for acquiring land “for public purposes” and compensating the displaced can be attributed to the Land Acquisition Act (LA Act), 1894, law which predates national independence. States have framed their rules under the LA Act, according which the revenue departments acquire land for implementing agencies within the ambit of case law laid down by the courts. India formulated its first National Policy for Resettlement and Rehabilitation (NPRR) in 2003, which is binding on the Central government agencies. Making this policy instrument enforceable in the states is not yet decided. With diverse R&R polices, legislations, guidelines followed by different states and major central public undertakings8, the issue is whether NPRR will act as a norm, or prevail over other similar legal and policy instruments, or create perverse federal fiscal incentives.

7 Presented by Ms. Viswanathan, Secretary, Ministry of Rural Development, Government of India 8 Central public undertakings like Coal India, National Highway Authority, the National Hydroelectric Power Corporation, National Thermal Power Corporation and joint ventures like the Tehri Hydro Development Corporation have their own policies. States like Andhra Pradesh, Orissa, Chhattisgarh and Madhya Pradesh have drafted R&R policies; Maharashtra and Karnataka have enacted their Rehabilitation Acts; Kerala depends on guidelines evolved from time to time; some follow procedures used in a large project for other projects, e.g. Karnataka applies norms set for the Upper Krishna Valley irrigation project. Jharkhand has a policy only for irrigation projects, Tamil Nadu for urban infrastructure projects and Orissa whose policy differentiates between industrial, mining, irrigation, urban & linear & all other projects.

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2.2 Currently the Central government is making a few policy moves to address outstanding issues related to R&R9. These efforts are aimed at amending and improving the current policy. The rationale for such policy change arises out of the understanding that consultative LA and R&R process reduces distress of the affected people and protects interests of the most vulnerable; ensures compensation at fair cost from the point of view of both implementing agencies and the displaced persons. A planned and accepted resettlement framework has several benefits. It reduces delay in project implementation, minimises legal disputes and resistance to land acquisition, improves coordination among local agencies, gives access to competent labour with knowledge of local conditions, provides opportunities for improving conditions of backward areas and vulnerable groups, and enhances transparency in the R&R process. 2.3 A key objective of such policy changes is to clearly define “public purpose” for land acquisition. Issues being discussed relate to precluding LA for private companies; banning land acquisition when it displaces the extremely vulnerable; restricting and regulating emergency provisions for LA without consultation; and setting limits on acquisition for defence purposes. Analysis of potential socio-economic impacts need to be made with the help of experts and through public consultations during planning stage for choosing the “least or minimal displacement” alternative. Other issues under discussion include adoption of transparent consultative methods using local representative bodies, especially in tribal areas; publication of time schedule and procedures, use of legal aid, providing space for participation of experts and NGOs; instituting grievance redress mechanisms and independent commissions, and monitoring of R&R process involving both state and federal governments. Constraints such as poor state of land administration systems call for steps such as updating land records, procedure for avoiding summary mechanisms, recording rights and interests, defining different kinds of rights, addressing needs of title holders, non titleholders, and families deriving livelihoods from acquired area; and addressing the issue of equity for jointly held lands. 2.4 Differentiation of R&R benefits depends on definition of the affected family (joint and nuclear families) and person in the existing social context, which requires reflection on the gender issue, and definitions of family in the existing policy. The principle of ‘land based resettlement’ requires rethinking in the context of different sectors such as urban, linear, irrigation, and mining, and areas in which projects are to be implemented. Special attention needs to be focussed on projects in tribal areas with community ownership systems and in case of forest communities for a reconciliation of conflicting objectives.

9 The Cabinet Committee on Tribal Affairs and the Planning Commission’s committee on inter-sectoral issues relating to tribal welfare have focused on the impact of current land acquisition measures on the welfare of tribal households since much of the land acquired for irrigation, power and mining projects displaces tribes. The National Common Minimum Program is committed to improving the existing systems for relief and rehabilitation of the displaced. The National Advisory Council has prepared a detailed policy paper which is under discussion

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2.5 The issue of providing alternative employment calls into attention a host of questions relating to right of persons or families, qualifications and needs, ways to deal with non-compliance on the part of land requiring agency in respect of employment issues, additional livelihood options arising out of project for the displaced as individuals or groups, measures for enforcing employment requirement on sustained and proactive basis, and constraints and opinions of the project employment office. Of late there has been discussion on the issue of sharing future growth and profits with the project affected persons and families. In this regard, there is a need for further reflection on issues such as share market listing, allotment of shares and risk factors, limits for companies and displaced individuals, valuation, methods for ensuring continuous access to benefits for vulnerable groups, and operational and administrative challenges. Finally, the provision of other amenities and protection measures for the displaced demands priority. These include housing, transitional support, community infrastructure, reservation rights and protections, linkages between implementing agency and resettlement colonies, monitoring resettlement, and post project administration. 3. Slum Development with Urban Poverty Alleviation, India10 3.1 The current trends of proliferation of urban slum dwellers and the visibility of urban poverty following rapid urbanisation over the last few decades point at a close linkage between slums and urban poverty in India. Between 1981 and 2001, the urban population grew from 159 million to 285 million. In the last fifty years, whereas the overall population grew three times to over 1 billion, the urban population grew 4.6 times. Between 1981 and 2001, the urban slum population jumped from 26 to 62 million (Town and Country Planning Organisation), indicating an ominous fall out of rapid urbanisation. The urban poor were estimated to cross 67 million in 2001 (Planning Commission) whereas the slum population was estimated at 62 million (TCPO), which clearly established a correlation between urban slums and urban poverty, and called for ling slum development with employment generation for urban poverty alleviation. 3.2 India’s combined poverty ratio declined from 36% to 26% during 1993-94 and 1999-2000; and its urban poverty ratio declined from 32.4% to 23.6% over the same period. However, in order to achieve its millennium development goals (MDG)11, India has to steadfastly focus on reducing urban poverty and slum development in an integrated manner. The strategies envisaged and adopted for this purpose include: entrepreneurship development, skill training, provision of wage employment, expanding basic services and social housing for the urban poor. Some of the key principles and methods emphasized include: ‘better targeting of beneficiaries’, micro-credit, security of land tenure, capacity building of non-government organisations (NGOs), community based organisations

10 Presented by Mr. S.C. Sharma, Director, Ministry of Housing and Urban Poverty Alleviation, Government of India 11 India as part of its MDG commitments targets to reduce the number of people earning less than a USD 1 by 50% during the quarter century ending 2015; reduce combined poverty ratio by 15% by 2012; ensure significant improvement in lives of 100 million slum dwellers; and provide basic services, improve sanitation, and give secure land tenure

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(CBOs), self-help groups (SHGs), and financial institutions (FIs); good governance through urban reforms, resource provision through budgetary allocations; international cooperation and public private partnerships; convergence of schemes for urban poor implemented by the Central and provincial governments; women empowerment; target setting and monitoring; focus on deprivations, etc. Setting up of the National Urban Renewal Mission, National Resource Centre on Urban Poverty, Policy on Urban Street Vendors, urban reforms at state and local government levels, National Strategy on Urban Poor (supported by UNDP), enacting the Right to Information Act for good governance, making budgetary allocations for the urban poor and linking up fund release with achievement of deliverables are some of the key initiatives undertaken in this direction. Certain NGOs have set good examples worth replication in the fields of urban community sanitation/basic services, livelihoods, and women empowerment. 3.3 In trying to achieve its target of reducing urban poverty, the Indian government has to address issues and problems such as authentic identification of beneficiaries, skill building, providing access to credit, improving basic service provisions, securing land tenure, providing education, and social security. Weak political will at the leadership level and poor articulation of voice by the urban poor accentuate these problems. The way forward appears to lie in planned development of cities, mapping of slums, and authentic survey of the urban poor, a mission oriented approach, resource mobilisation, urban renewal, good governance, pacing up mandatory and optional reforms in a phased manner, e-governance, linking asset creation and management, adopting a demand driven approach, forming task forces on land tenure, micro-credit, involving civil society organisations, setting up resource centres, resource convergence, concurrent evaluation of schemes, Public Private Partnership (PPP), international cooperation, and information sharing and dissemination. 4. Legal Framework for Land Acquisition and Resettlement in India12

4.1 The Indian Land Acquisition Act (LA Act, 1894) provides the legal framework for compulsory acquisition of private land for public purposes in the country. Comparable to the principle of ‘Eminent Domain’ in America and the ‘Law of Compensation’ in England, LA Act has been a focus of much legal debate on account of complex issues involved. These include: the clash of the ‘eminent domain’ principle, on which LAA is based, with competing fundamental rights, such as livelihood; justifiability and equitability of compulsory land acquisition; contentiousness nature of the concept of ‘public purpose’, which is open to challenge on grounds of colourable exercise of power; the use of LA Act for private corporations; possible reassigning of unused acquired land for purposes other than originally acquired for; and limited scope for public consultation except in scheduled areas (inhabited by tribal communities). 4.2 In the absence of a precise definition, the test of ‘public purpose’ could mean larger benefit or simply government satisfaction, challengeable on grounds of procedural irregularity, prima facie arbitrariness, or colourable exercise of power. When land is acquired for private corporations, material criteria cited generally include the interest of 12 Presented by Mr Sanjay Upadhyay, Lawyer, New Delhi

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the national economy, public health, etc. Fixing of compensation is done on the basis of evaluation of land cost at ‘market value’ (price quoted in previous deals) as on the date of notification of intention to acquire. This brings into focus factors such as the existing and future potential of land, difference in price quoted and actual market value, which are not easy to calculate. Cash compensation is resorted to where compensation of land for land is not possible. Land Acquisition proves difficult in view of its lengthy procedures and its vulnerability to court interference questioning any play of subjective considerations. 4.3 In view of the problems associated with the LA Act, some states including Maharashtra, Tamil Nadu, and Andhra Pradesh haves tried to simplify the procedure as part of Rules under the LA Act13. Land acquisition has been mandated by several other national legislations14. Similarly, certain states have passed separate and special legislations for acquiring land in order to avoid lengthy procedures under the LA Act. For example, legislations such as Maharashtra Regional and Town Planning Act (1966), Housing Area Development, Industrial Development, City Improvement and the Bombay Municipal Corporation Act (1888) broadly provide for less cumbersome procedures involving acquisition through notification and payment of compensation based on agreement/negotiation. In Tamil Nadu, several legislations provide for acquisition through notice and compensation through agreement15. The use of specific acquisition legislations is noticeable in Andhra Pradesh16, where a different method of land valuation is adopted to minimise speculation. 4.4 India does not have any legal framework for R&R at the national level, except a policy framework, the National Policy on Resettlement and Rehabilitation of Project Affected Families (NPRR), 2003. NPRR sets down procedures for R&R, such as assessment of potential social and economic impacts; consultative methods for preparation of draft R&R schemes; rehabilitation package covering loss of shelter, assets, and livelihoods; land-based resettlement strategies, disclosure of draft resettlement plans,

13 Maharashtra has included provision for preliminary survey, and made the decision of the concerned officer (the collector) accountable. Tamil Nadu has increased scope for urgent acquisition, brought in procedural clarity, and set a time limit of two years for award. Andhra Pradesh has defined urgent public purposes, and has made the acquisition notice period more pragmatic. 14 National Highways Act, 1956; National Highways Authority Act, 1988; Coal Bearing Areas (Acquisition and Development) Act, 1957; Cantonment Act, 1924; Electricity Act, 1910; Indian Forest Act, 1927; Petroleum and Minerals, Pipelines ( Acquisition of right of User in Land Act) ; Indian Telegraph Act, 1885; and Indian Railways Act, 1890, 1989; 15 Acquisition of Land for Harijan (Scheduled castes) Welfare Schemes provide for LA through notice; and compensation through enquiry and market value; the Madras State Housing Board Act provides for LA through agreement by purchase, lease or exchange of land; the Highways Act provides for acquisition through notice, compensation by agreement or through the Collector and re-vesting or unused acquired land with the original owner with interest; the Acquisition of Land for Industrial Purposes Act provides for acquisition through notice and compensation through agreement; Madras City Municipal Corporation Act (1919) and Tamil Nadu Town and Country Planning Act provide for land acquisition through agreement. 16 The Nagarjunasagar Project (Acquisition of Land) Act, 1956; Visakhapatnam Steel Project (Acquisition of Lands) Act, 1972

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implementation of all R&R activities prior to displacement and project completion. The weakness of this policy lies in its non-enforceable nature, its focus limited to affected families, lack of a prescribed time schedule for R&R implementation, and the lack of an institutional structure for delivering outputs. States such as Maharashtra, Karnataka, Madhya Pradesh, and Orissa have their own legal frameworks for R&R17, whereas states like Tamil Nadu and Andhra Pradesh have ad-hoc R&R frameworks. States such as Maharashtra and Tamil Nadu make use of legal frameworks available for slum clearance and redevelopment to address urban resettlement needs18. 4.5 Various court judgments provide a broad, if not comprehensive, legal perspective on land acquisition, R&R, and slum redevelopment issues. Courts are of the view that it is the State’s duty to resettle persons displaced due to any land acquisition. The government can provide the affected persons with alternative land or employment as compensation. The courts make no distinction between temporary and permanently affected persons when it comes to taking R&R measures for the displaced people. The courts have said that land acquired for one public purpose can be used for another such purpose (say for R&R), but not for a less urgent purpose, such as recreation ground. The courts have also said that the displaced persons have the first right to seek resettlement on unutilized acquired land. As regards slum clearance and redevelopment, the courts see eviction of slum dwellers without prior notice as violating the principle of natural justice. Courts have also recommended that slum dwellers should not be evicted unless alternative accommodation is provided to them. Courts have generally emphasized the right to shelter of the homeless poor19 and recommended creation of rural employment opportunities and even spread of existing urban job opportunities. Acquisition of land for housing the urban homeless is seen as a basic function of the urban local government. The government’s resort to acquire vast tracts of private lands for numerous upcoming special economic zones (SEZ) set up by the private sector has raised questions on the issue of ‘public purpose’ being the basis of land acquisition. Attempts by different states to by pass LA Act through alternate routes without a uniform procedure in place has also raised questions.

17 The Maharashtra Project Affected Person Rehabilitation Act, 1999 is meant to address R&R issues in case of road, water supply, and irrigation projects; it does not apply to externally aided projects. Maharashtra has developed a special R&R Policy applicable only to the WB assisted Mumbai Urban Transport Project. 18 The Maharashtra Slum Areas (Improvement, Clearance and Re development) Act, 1971 prescribes rules for declaring slums, carrying out works such as slum improvement, clearance, and redevelopment through resettlement of slum dwellers at alternative sites; land acquisition for slum redevelopment; and welfare of slum dwellers. Maharashtra Housing and Area Development Act, 1976 provides for slum improvement in Municipal Corporation and Municipal Councils. Maharashtra’s Development Control Regulations (Section 33.10) provides for implementing slum redevelopment schemes through TDR. The Tamil Nadu Slum Area (Improvement and Clearance) Act, 1971 lays down rules for declaring slum areas, preventing their growth, recording slum buildings, protecting tenants, carrying out slum clearance, improvement, and redevelopment works, and acquiring land within slums/ adjoining areas for such purpose. Tamil Nadu government’s Housing and Urban Development Department Policy Note (2005-2006) prescribes norms for slum clearance scheme; resettlement of slum families in Chennai. 19 A very recent Supreme Court judgment however has dismissed anybody’s right to squat in public places

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5. Guidelines for Resettlement in Urban Context: Views from Indian NGOs20 5.1 Urban development projects cause large scale displacements having serious social and livelihood implications for the affected people. Social and environmental aspects must therefore be considered upstream of project formulation with equal emphasis as economic and technical aspects so as to explore alternative implementation options. Informed participation of the affected people, not expertise of hired consultants, holds the key to authentic social and environmental impact assessment. Plans for resettlement and rehabilitation should be prepared with people’s informed participation and consent, as they know better about their local livelihood processes and can give reliable inputs for rehabilitation planning. People’s customary rights to shelter should be recognised as part of their rights to livelihood. Often urban resettlement programmes fail because of underestimation of the number of people affected, and loss of their livelihoods and assets. Accurate baseline data on extent and nature of impact is therefore important. As impoverishment risks are higher in case of poor families, comprehensive analysis of resettlement risks is a key initial step in resettlement planning. 5.2 The affected people, who stand to lose their shelter and livelihoods, should have access to all project related information during the resettlement cycle. Resettlement and rehabilitation provisions should enable the affected people to achieve better or regain comparable living standards. While determining compensation, replacement value of livelihood assets and houses should be taken into consideration. This should cover compensation for lost property, assets, livelihoods, and opportunities. The affected people should have the scope to participate in the selection resettlement sites. A well structured grievance redress mechanism specifying authorities, responsibilities, and procedures should be built in to the system. The time schedule for displacement and resettlement process should be determined with the help of people’s participation. The resettlement action plan should include short term resource transfer to enable people to recover their livelihoods. Proper care should be taken to ensure that the R&R process remains gender sensitive. The resettlement process should be carried out in a phased manner in order to reduce people’s hardship. 6. Involuntary Resettlement in Urban Context: World Bank Policy21 6.1 The objectives of the World Bank’s social safeguard policies are laid down in Operational Policy on Involuntary Resettlement (OP/BP 4.12). The policy is designed to help design and implement development projects that are sustainable; identify and address adverse impacts on third parties, especially on the poor and the vulnerable; promote timely project implementation; facilitate responsible growth. Application of the Bank’s policy is mandatory for all operations supported by it. The policy adopted for the first time

20 Presentation made by Prof. Parmeswaran, Director, Tata Institute for Social Sciences (TISS), Mumbai on the basis of views expressed by NGOs in a special consultation with civil society organizations convened by the Bank prior to this workshop at New Delhi in September 04, 2006. The presentation was made through teleconference during the workshop. 21 Presented by Mr. Chaohua Zhang, Social Scientist, The World Bank

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in 1980 has been revised in 1991 and 2001 to reflect lessons learnt from implementation. The Policy is complemented by the “Involuntary Resettlement Sourcebook” available for reference during application of the guidelines. The IFC and MIGA, other organizations of the Bank group, also have similar policy provisions. The Asian Development Bank and Inter-American Development Bank have adopted policies with many of the same provisions. Many international commercial banks and responsible corporations have adopted similar standards (equator principles).

6.2 Key objectives and principles of the WB Policy call for steps to avoid or minimize involuntary resettlement, exploring all viable alternative designs. Where resettlement is not avoidable, the policy requires the implementing agency to treat resettlement as a development program and allow affected people to share the project benefits; provide affected people with opportunities for meaningful participation in planning and implementation of resettlement programs; assist affected people in their efforts to improve their livelihoods and standards of living, or at least to restore the same; assist the affected people to restore their livelihoods, regardless of the nature of tenure over land occupied by them; pay compensation for affected assets at replacement cost. Application of the policy is triggered by involuntary acquisition of land and other assets, and restriction of access to parks and protected areas. The policy covers direct economic and social impacts that result from Bank-assisted investment projects due to the above two instances. In addition to Bank financed activities, the policy applies to all project activities, including those that are not financed by the Bank, activities outside the Bank project, if they are, necessary to achieve project objectives, are directly and significantly related to the Bank-assisted project, and are carried out, or planned to be carried out, contemporaneously with the project. Affected people recognized by the policy, divided into three categories based on land tenure, include: those who have formal, legal rights to affected land (including customary and traditional rights recognized under the country’s laws); those who do not have formal legal rights but have a claim that is recognized under the laws of the country; and those who have no recognizable legal right or claim to the land they are occupying. 6.3 The policy provides for payment of compensation to those who have legal rights on affected land, and those who have claims that can be regularized; and provision of resettlement assistance to those who have no recognizable legal right or claim to affected land but who occupy the land before the “cut-off date”. No assistance is to be provided to those who occupy lands after the cut-off date. The policy prescribes that compensation for affected structures needs to be paid to all three categories of affected people. The policy prescribes the use of a set of planning instruments to be used during implementation. Resettlement Plans need to be prepared before appraisal for all Bank projects involving resettlement. Resettlement Policy Framework has to be prepared before appraisal for “sectoral lending operations and projects with multiple subprojects”. Process framework has to be prepared before appraisal for projects involving restriction of access to natural resources in parks and protected areas. 6.4 R&R measures provide that compensation for affected assets needs to be paid at the replacement cost. If productive assets are affected, development assistance needs to be

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provided to help achieve livelihood restoration. Affected people need to be assisted with shifting to new locations; Transition arrangements are needed until livelihood restoration is established. The R&R implementation schedule includes steps at various stages. Steps needed prior to physical relocation of the affected people include payment of compensation for affected land and other assets, and if applicable, setting up of relocation sites should, provision of moving and other allowances, and the initiation of livelihood restoration measures.

6.5 The policy calls for installing of mechanisms for grievance redress, monitoring and evaluation. Mechanisms to redress grievances of the affected people, viewed as efficient and credible by all stakeholders, need to be established. Monitoring of R&R implementation should be carried out both by internal and external agencies. Consultation with affected communities is required as an essential element of project design and implementation. Disclosure of resettlement instrument is considered a condition of project appraisal. As per the prescribed procedure, the client provides the Bank with a draft resettlement instrument, makes it available at a place accessible to affected people and other stakeholders. The Bank makes it available to the public through its Info Shop. As per the procedure for supervision, completion and beyond, the task teams work with borrower to supervise implementation. The supervision process continues until the agreed resettlement measures are implemented. A socio-economic survey to assess/ establish resettlement completion is carried out by an independent agency. If the assessment reveals that objectives may not be realized, follow-up measures may be required. 6.6 R&R Challenges in Urban Settings: Increasing demands for spatial rationalization, reorganization of existing and emerging urban areas, large residential requirements for the poor, and intensification of land use make it imperative to evolve strategies for planned urban development. An important question here is how to find ways in which resettlement design and implementation better support equitable and sustainable urban development. Bank has implemented its R&R policy in a variety of urban settings and successful projects continue to feature by virtue of sound resettlement planning, careful implementation, and flexibility to respond to changing ground realities. Urban areas provide unique opportunities to successfully implement resettlement programs. Access to markets, information, employment, services, education and consumers etc. provide unique opportunities for income generation and livelihood development. Improved infrastructure is often easier to provide to the urban poor as part of resettlement program. Provision of secure tenure through resettlement programs helps with urban development agenda/poverty reduction. Provision of secure tenure consistent with urban development policies is made in most countries, as part of slum upgrading or other local development initiatives. Large scale urban infrastructure development or urban renewal is not possible without addressing tenure-related concerns of a large number of urban poor. In all examples of large scale urban development, people without tenure are (a) either provided secure tenure as part of the resettlement program, or (b) provided assistance for lost assets as if they had secure title to such assets. Livelihood rehabilitation is central to all resettlement programs. Urban economies offer many opportunities for livelihood development. Location is a key factor in formal and informal economic activities and deserves careful consideration in resettlement planning. Credit, business counseling and

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advice, and opportunities to develop skills can serve to improve or create new capacity for livelihoods. Issues such as capacity building and sustainability are important here. Understanding among project staff of the complexity and needs for the development approach for resettlement is equally important. Creating capacity, within government and civil society to effectively engage in resettlement planning and implementation is a key requirement. Improving urban planning, taking into account the residential needs of poor residents, early dissemination of project information, effective and timely consultations with key stakeholders is essential for successful implementation. 7. Community Participation Driven Resettlement: Ban Mekong, Thailand22 7.1 The process of urbanisation in Thailand, which started in the 1960s and intensified in 1980s, saw the emergence of numerous slums in its cities. By 2000, 5500 low income communities lived in 300 cities/ towns, out of which 3700 households had their houses built on insecure lands. 70-80% of them could not afford formal housing; 65% lived on rented land without secure contract, 35% of them were squatters with most faced with the threat of eviction. In 2004, the government of Thailand started an ambitious scheme under the National Housing Development Plan to rehabilitate 1 million slum households. The Community Organisation Development Institute (CODI) played the role of a nodal agency coordinating this community-based slum upgradation programme. A Community Development Fund (CDF) was created to finance the project with USD 67 million earmarked for the purpose by the government. CODI disbursed funds, monitored as well as coordinated the process, functioning as an interface among the stakeholders involved including the government departments, banks, companies, NGOs, slum councils, and their federations/ networks. 7.2 At the grassroots level, Community Development Committees (CDC) coordinated action amongst slum networks, housing cooperatives, local authorities, academics, supporting agencies, NGOs and others. The slum networks addressed issues such as savings and credit, land & housing, welfare, community enterprise, environment, etc. The methods adopted for slum rehabilitation included: rehabilitation based on land sharing agreements, resettlement near slums, and up-gradation of existing slums. The approach was shifted from a ‘supply driven’ to a ‘community demand driven’ approach; from ‘project and construction management’ approach to a ‘flexible financial management’ based on ‘community partnership’. The scheme envisaged an integrated city wide development approach, and was financed through a combined package of government grants, bank loans, and interest subsidies. The process involved a series of steps: community survey; coordination through local working groups; citywide planning and designing with the help of community architects, exploration of housing alternatives through on-site development, closer relocation, formalisation of land use, community organisation, and capacity building. 7.3 Lessons: 1. Community driven resettlement process enabled community members to work collectively as a unit. 2. Community savings and credit proved to be a crucial 22 Presented by Ms. Somsook Boonyabancha, Community Development Organisation Institute, Bangkok, Thailand

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factor enabling the community to manage and finance its own redevelopment. 3. Citywide integrated slum upgrading approach helped build up new partnerships among community groups and the local government. 4. Networking among slum community groups facilitated horizontal learning and experience sharing among people and flexible financing model provided scope for creativity of the local community to blossom. 5. Encouraging community participation to go beyond physical reconstruction boosted community empowerment in terms of social self organisation, welfare, and development. 8. Resettlement through Self Initiative of PAPs: Abidjan, Ivory Coast23 8.1 Linking up the north (Riveria) and the south (Marcory) of Abidjan in Ivory Coast (Côte d’Ivoire) required the construction of a bridge with approach highways that would pass through densely inhabited urban areas in Marcory, displacing 3000 persons, mostly illegal immigrants earning their livelihoods from small businesses on the affected corridors. A Resettlement Action Plan (RAP) was prepared through public consultations in 1998 by the Ministry of Housing and Urban Planning with the estimated cost decided to be borne by the Ivory Coast government. Most of the 1700 people living or working on the highway trace in the Marcory district belonged to the lower income group, with a few in the middle income group, and still fewer with large business activities. Most affected people however were engaged in small activities located along the Pierre and Marie Curie Street. The R&R package offered included resettlement of low income owners, resettlement or cash compensation for middle income owners, and cash compensation for individual owners. The majority interested to stay closer to their original location were resettled within the Marcory district. A resettlement site was identified at Alliodan and the construction of 55 houses was completed prior to actual displacement in 1999. People fenced their houses and upgraded them after they moved in. A school was also rebuilt. Cash compensation was offered to 1000 persons. Resettled owners got compensation for relocation expenses; non-resettled owners received compensation for building and land; whereas tenants got rent for 2-3 months. Owners of businesses got compensation for the loss of building, for the loss of revenue, and for the loss of salaries of their employees. 8.2 The resettlement of people living in a shanty town in Blingué 3 kms away at Agban in the Cocody district was an interesting experience. These people, mostly non-title holders, were treated as owners as they had built their own structures. They were resettled on public land at Agban, where they got perennial occupation rights. People built their own houses/ structures with cash compensation received. The project stationed a supplier of raw materials. The construction work offered employment to people from the neighbourhood. Security of tenure encouraged these people to invest on better quality houses. Some of the re-settlers set up small businesses. Neighbourhood plantation was carried out with saplings provided by the project. Special attention was paid to needs of the vulnerable persons such as widows, unemployed, and the physically challenged. 15 artisan workshops were resettled. The resettlement process was completed by 1999. All this could be achieved within a short period of 6-8 months because of a flexible approach. A specific agency was created within the Department of Housing and Urban Planning, responsible for supervision, monitoring of implementation. Consultations with re-settlers 23 Presented by Dr Fredrick Brusberg, Senior Safeguards Advisor, The World Bank

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and public information sharing were important norms. The implementing agency was assisted by CARITAS-Ivory Coast. The cost of the project was USD 10 million. 8.3 Lessons: Encouraging self-construction of houses at the resettlement site could be a cost-effective option. Better housing in shanty towns requires security of tenure. Continuous consultation with the affected people should be given priority. Early consultation and planning, a good census of affected people, continuous negotiation, and flexible budget help complete R&R projects on schedule. 9. Using Market Choice in R&R for Urban Development: Tianjin, China24

9.1 Tianjin, the third largest city in China saw rapid urban expansion in 1980s marked by a significant increase in housing construction (30 million square metres), building of roads, and emergence of a vibrant construction and real estate market. To guide such urban growth in a planned manner, an urban development project was undertaken in Tianjin with World Bank support in 1992. The project involved among other activities relocation of 4050 slum households for urban redevelopment on cleared land. The slum residences, having gross unit area of 6-10 sq. mts and without kitchen and toilet, were built in 1949. The houses were dilapidated and unsafe and people living therein needed relocation. The city centre area where the slums stood was densely populated (500-700 persons/hectare), whereas 4-5 kms away areas closer to employment centres were less populated (200 persons/hectare). Improvement of land use efficiency demanded intensive redevelopment of the city centre for business use (by increasing floor space index) and development of the under-used areas up to an overall density level. To achieve this, the project aimed to free slum areas for intensive redevelopment and relocate slum residents to better houses slightly away from the city centre and closer to employment centres. 9.2 The presence of a fair system of compensation and previous experience in large scale resettlement and redevelopment provided the positive context in which the Tianjin resettlement project was initiated25. Under the existing system, residential houses offered for resettlement were 2-3 times larger than the older ones, and business could have better places closer to the old location. Changes brought to refine the system included: a) a new compensation formula taking into consideration location for fixing entitlement and b) a new resettlement procedure which replaced the old system of providing alternative shelter by the district government by a system of free choice within the scope of entitlement. This paved the way for introduction of the resettlement voucher system. 9.3 Under this system, compensation was fixed based on an assessment of size of building and household characteristics, and to record the same surveys were carried out jointly by the involved agencies including the district government. Compensation package included assistance in cash (calculated per unit floor space), which was different for owners and renters. ‘Resettlement Vouchers’ reflecting alternate floor space entitlement (in sq. mts) of respective resettling households was issued to them with a guide to make a choice from a list of housing facilities at alternative locations developed 24 Presented by Mr. Songsu Choi, Lead Urban Specialist, The World Bank 25 2 million sq. mts. of old housing were demolished and 100,000 households relocated during 1986-89.

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by housing companies. Factors such as the cost of new house construction, land acquisition and taxes were taken into consideration while preparing the vouchers. A systematic process with clear procedures and time schedules was followed for resettlement. Steps such as consultations with neighbourhood committees, serving of vouchers with notification of plan, date, and procedure for relocation, price, location and designs of new houses were followed by resettlement choice made by the affected households. The project management office (PMO) compared demand with supply for assigning alternative houses, sometime with the help of lottery, when demand exceeded supply. Moving compensation, assistance for transfer of registration, etc. were provided. Procedures were worked out to address any variance between resettlement vouchers offered and choice of alternative housing made by the affected families. 9.4 Housing development projects were selected at six locations offering wider choice of location, sizes, types, and quality. The relocating households were provided with fuller access to community facilities such as schools, child care facilities, and health clinics. Real estate and construction enterprises, autonomously working under the supervision of the urban development department were engaged for developing the housing sites. Community awareness through informal interviews, consultations, and information dissemination was given priority. All resettlement activities were completed at least two weeks before actual demolition. Planning and monitoring mechanism were installed for effective and timely implementation. A resettlement task force was instituted within the PMO for overseeing the process. IDA credit was utilised for construction of housing and not for land acquisition and taxes. Feedback from the resettled families indicated their positive attitude towards the new system of choice-based resettlement. The success of the new voucher system resulted in its city wide replication involving resettlement of households occupying 5 Million Sq.Mts of floor space from 1994 to 2002. The system of cash compensation was adopted from 1996 onwards. The voucher system was adopted in other Chinese cities from 1995, which became a standard practice in 1999. 9.5 Lessons: The key lessons learnt from the experiment were as follows. First, a flexible system helped accommodate needs of the less fortunate. Second, adoption of the market choice system ensured greater beneficiary satisfaction; made the resettlement process quicker, and cheaper; and facilitated more efficient city development. 10. Planning Human Settlements for Urban Redevelopment: Bogota, Colombia26

10.1 The widespread urban growth in Colombia reversed the ratio of its rural-urban population from 20:80 in 1938 to 80:20 in 2005. Bogota, the Colombian city the on Andes, rapidly grew during the last two decades to reach a population of over 7 million people. Rapid and unplanned expansion of Bogota was due to a host of factors such as rural-urban migration, protracted armed conflicts, short term urban plans, and the adoption of “buildings model” instead of “development model”27. The outcomes of such unplanned urban growth included: large illegal settlements (covering 50% of

26 Presented by Ms. Elena Correa, Urban Specialist, The World Bank 27 Positive changes in recent years include national law requiring 10 year development plans; and Bogota developing a land use plan in 1999.

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neighbourhoods), human settlements in risk-prone areas, progressive land deficit for future development, loss of wetlands and lakes (49,000 hectares); and severe infrastructure deficit for transport, power and communication, education, water and sanitation, markets, etc. The implementation of the new ‘land use plan’ adopted in 1999 invariably caused large involuntary displacements. Planned urban development projects undertaken were in four major sectors: transport, water and sanitation, disaster risk reduction, and urban renewal. Building mass transit systems required resettlement of 6000 families. Recuperation of water (creeks, wetlands, and Bogota river) and drainage systems required resettlement of 10,000 families. Moving people living away from high risk prone areas required resettlement of 10,000 families. Urban renewal programmes aiming at recovery of down town areas required resettlement of 8,000 families, industries, businesses, and vendors. 10.2 Transport projects affected low, medium, and high income populations (mostly business, tenants), whereas water & sanitation and disaster risk reduction projects affected low income populations without legal titles and access to public services. While transport and urban renewal projects affected individual families and businesses, water & sanitation, and disaster risk reduction projects affected communities, for whom finding land for new settlements was difficult. In view of the presence of an active real estate market, a strategy of assisted resettlement was considered appropriate. Main components of this strategy were information and communication; compensation for affected property at market value, compensation for economic losses; housing subsidies for non-title holders; legal and technical assistance for accessing the real estate markets; social assistance for restoring access to basic services (education, health); and training and assistance for restoring incomes. Street vendors were offered new areas for business and for buying property; and support to strengthen their organisation and business. 10.3 Five key steps taken for implementing the resettlement strategy were as follows: Setting up of an interdisciplinary task team comprising professionals to assist in resettlement; informing people and establishing information and communication channels; carrying out detailed socio-economic and physical surveys; classifying affected families/communities into categories on the basis of land tenure, use of assets, types of loss/impact, and degree of vulnerability; and formulation and implementation of the resettlement plan through consultation having in place a monitoring regime. 10.4 Based on the experience of the last 12 years of resettlement planning and implementation, Bogota is in the process of preparing a Resettlement Policy, addressing issues at three levels: individual (short-term), urban (medium term) and regional (long term). At individual level, the policy aims to standardise criteria and methodologies adopted by agencies planning and implementing R&R; improve tools and methods for R&R implementation; improve criteria for compensation for losses; and record learning. At the urban level, the policy aims to apply urban planning instruments for preparing areas for future projects, prevent new illegal settlements, provide legal titles to current settlements, promote housing and businesses for future resettlement, and improve urbanism. At the regional level, the aim is to make use resettlement process to support the regional plan being developed with neighbouring municipalities and departments for

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sustainable urban expansion. Bogota and neighbouring municipalities have created a task force to study Bogota’s growth trends and its implications for the wider region. 10.5 Lessons: First, resettlement challenges need to be addressed in the context of existing constraints (such as land deficit in case of Bogota) and available opportunities (presence of an active real estate market). Second, Resettlement strategy yields best results when it becomes an integral part of larger urban redevelopment and renewal plan. 11. Comprehensive Slum Resettlement Experiment-Chandigarh, India28

11.1 Chandigarh was established in 1966 as a Union Territory (i.e. managed directly by the Government of India) to function as the capital of in the northern Indian states of Punjab and Haryana. Originally planned by the French Architect Le Corbusier for a population of 500,000, the city grew up dramatically in the last four decades with the expansion of economic activities attracting labourers from various states into its service sector. Chandigarh has now about 100,000 people (23,000 families) in 18 slum colonies. The initial attempt by the Chandigarh Housing Board (CHB) to rehabilitate the slum dwellers by providing formal housing on ownership basis did not reduce slums as the beneficiaries often sold off their alternative tenements to return to the slums. The CHB has now drawn up a new slum resettlement strategy aimed to clear the slums once and for all by rehabilitating the slum dwellers at one go based on a “biometric survey” carried out by the Chandigarh Estate Office. 11.2 The strategy involves onetime resettlement of all slum dweller families in new formal settlements and putting the slum lands thus released to immediate alternative use. The beneficiaries will bear the construction cost whereas the government will bear the costs of land procured from farmers at market price. Abandoning the “one size fits all” principle, the alternative tenements shall have varying sizes and designs to be allotted based on paying capacity of the concerned beneficiary. In order to prevent selling, subletting of tenements and ensure targeting of the genuine beneficiary, an exhaustive biometric survey is underway which involves collecting and storing in database digital fingerprints of the heads of slum household enumerated. The system of transfer of tenements on ‘hire purchase basis’ has been replaced with a system of ‘possession on payment of monthly instalments with a back-end subsidy built-in’. Fear of resale of resettlement tenements is minimised as the purchaser will be at risk in view of the norm requiring payment of instalments by the original beneficiary. To enable the slum dwellers to bear the cost of the tenements, CHB is providing necessary credit linkages in coordination with bank and non-bank bank institutions. 11.3 Lessons: Adoption of context specific tools such as ‘biometric survey’, setting in place appropriate management and monitoring mechanisms, and provision of suitable institutional support linkages (financial) can help address existing needs and minimise likely future risks in the resettlement process. 12. Resettlement in Urban Sector Projects: Karnataka, India29 28 Prepared by Mr. Sanjiv Sahai, Secretary to the Lt. Governor, Delhi, India

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12.1 The Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), the nodal urban development agency in the fast growing state of Karnataka, has evolved its own approach to deal with R&R issues in urban development projects, based on learning gained from its past experience. It has developed a resettlement framework for projects aided by multilateral agencies such as the World Bank and the Asian Development Bank. The framework involves provisions for compensation and R&R benefits as per an agreed entitlement matrix, social and environmental screening/ initial poverty and social analysis; survey and enumeration of affected/ displaced persons; project information disclosure at neighbourhood and local governing body levels; primary consultations with PAPs and secondary consultations with NGOs, other stakeholders and third parties; a regime for project monitoring and grievance redress. From its experience, Karnataka has learned that the best way to deal with displacement is to minimise it through appropriate project design. KUIDFC has developed a detailed entitlement matrix for provision of R&R benefits in tune with norms acceptable to external aid agencies. Compensation for affected land and buildings is given at replacement value in case of title holders and alternative buildings given in case of non-title holders. Incentive for housing and land is provided for early resettlement. Steps taken to secure income restoration include extension of skill training, and other technical and financial support. Other R&R benefits provided include transit accommodation in case of emergency land acquisition, and provision for transportation allowances. 12.2 Some of the key challenges faced in the urban resettlement process are related to issues such as delay in land acquisition; dealing with large number of PAPs; problems in identifying title holders due to pending legal issues; dealing with squatters/ encroachers and unauthorised establishments, temporary and mobile hawkers. As matter of principle, projects requiring large scale land acquisition are discouraged, except for those related to roads, layouts, and treatment plants. Projects related to laying down pipelines require much less land acquisition. Even though existing laws permit implementation of such projects without land acquisition30, KUIDFC has followed entitlement frameworks agreed with aid agencies to address the issue of compensation and rehabilitation. In case of projects requiring large strips of land, mostly agricultural lands have been acquired, providing appropriate compensation. Where more than 200 persons are affected, resettlement action plan is prepared and implemented. The local governance system is engaged in R&R at different stages of the implementation process. They have a key role to play in carrying out socio-economic surveys, disclosure of project related information and entitlement matrix; consultations with PAPs and NGOs/other stakeholders; management of formal grievance redress mechanism, project implementation and monitoring, and documentation. 12.3 One example of “best practice” in Karnataka involved resettlement of 200 unauthorised families living on 370 acres of government land, earmarked for social forestry, Pilukula Nisarga Dhama, a wild life project, near Mangalore city. Land was

29 Presented by Mr Javed Akhtar, Karnataka Urban Infrastructure Development and Finance Corporation 30 (i) Karnataka Urban Water Supply and Drainage Board Act, (ii) Karnataka Municipal Corporation Act, and (iii) Karnataka Municipalities Act

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allotted in the adjacent area where houses were provided to the families under the social housing scheme (Janata Housing). They were also provided other infrastructure support and access to basic services. The families voluntarily shifted to the resettlement site where they got land title. 12.4 Lessons: Key issues in resettling unauthorised settlements relate to providing infrastructure support, improving access to basic services, providing opportunities for social interactions, taking steps for improving incomes, and protecting health and environment. Karnataka has learnt from its experience that a few good norms help implement R&R projects ensuring quality and effectiveness. These include providing land for land as first option and providing compensation at market cost in case of land acquisition; adopting consent award to minimise implications; having in place a strong grievance redress mechanism; sensitizing field staff on R&R issues; public disclosure of all project related information including entitlement framework; adhering to a strict time schedule; addressing livelihood and income needs; and ensuring strong participation of NGOs and other stakeholders in monitoring process. 13. Resettlement Strategy for Urban Transformation: Mumbai, India31 13.1 Mumbai, the commercial and financial hub of India, is a large city with great potential facing numerous challenges, the most important being the need for urban renewal. Mumbai generates 5% of India’s GDP; contributes over 1/3rd of India’s tax revenues; and generates over Rs. 50,000 crore (over USD 11 billion) as annual tax revenue. Projected to be the second largest city in the world by 2015, Mumbai is stressed with its transport system having to cope with 1.6 million vehicles, proliferation of slums at places reserved for essential infrastructure, declining industrial activities, and lack of affordable housing for its ever expanding population (currently over 12 million). The Government of Maharashtra is making efforts to rejuvenate Mumbai by setting up a task force involving industries, citizens, and NGOs. A “Vision Mumbai” document has been prepared to chart out a strategy for transforming Mumbai into a world class city. The city’s long term development strategy is focused on planning and financing, physical and social infrastructure, economic growth, housing, and governance. Major projects undertaken are focused on sectors such as transport (roads, high ways, suburban and metro rail, trans-harbour lane), housing (slum redevelopment and resettlement), and civic infrastructure (Airports, water supply, drainage, and health). 13.2 About 55% of Mumbai’s population lives without secure tenure (6.5 million) in 3000 slum pockets, blocking vital public projects. Mumbai needs to build 1.2 million houses to resettle these people. Land is scarce in the city with vast tracts of land locked in coastal regulatory zone (CRZ) regulations and salt pan leases. Thousands of old buildings are dilapidated endangering lives of hundreds of thousands of people. Important infrastructure projects (MUTP, MUIP, Metro Rail, etc.) now under implementation affect slums. MUTP and MUIP together require resettlement of 55,000 slum households (350000 people) living in road and rail corridors. About 20,000 households are affected 31 Presented by Dr T Chandrashekhar, Metropolitan Commissioner, Mumbai Metropolitan Region Development Authority, Government of Maharashtra

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by MUTP (World Bank assisted), about 35,000 households by MUIP, about 20,000 households by Mithi River Project, and over 80,000 households by the Mumbai Airport expansion project. Mumbai Metropolitan Region Development Authority (MMRDA) has built 53,000 tenements (another 8000 under way) in 33 integrated townships for resettling 350,000 slum dwellers. These resettlement townships are integrated with road and rail network, have social facilities such as child care and community centres, housing society offices, shops, and civic amenities (school and hospitals) in the neighbourhood. Essential physical infrastructure like water supply, sewerage, storm water drain, roads with footpaths and recreation grounds are also provided. 13.3 Maharashtra’s R&R Policy and various other legislations provide an established legal framework for carrying out resettlement activities on a major scale32. The R&R policy aims at rehabilitation of slum dwellers/ PAHs providing them with secure tenure as per the entitlement matrix through community participation. Each PAH gets minimum free tenement of 225 sq. ft. and maintenance grant of Rs. 20,000. Minimum density for tenements is in the ratio of 500 tenements (in multi-storey buildings) per hectare with Floor Space Index (FSI) of 2.5. In order to fetch land and finance resettlement projects, Mumbai has developed the concept of transfer of development rights (TDR) under the slum rehabilitation scheme. The developer of buildings is entitled to equivalent built up area for the free sale purpose for floor space given out for resettlement purposes. TDR has facilitated easier transfer of private land to the government (compared to the difficult LA process) for resettlement purposes. 13.4 Steps taken in the R&R process include preparation of baseline socio-economic survey (BSES) and cadastral maps to identify PAHs and record their status; identification of resettlement sites; preparation of resettlement action plan and eligible PAH lists; public consultations, issuance of identity cards and allotment letters; shifting of PAHs to purposively constructed transit shelters (in case of urgent site clearance); construction of permanent resettlement tenements and relocation of PAHs; and post resettlement support activities such as formation of cooperative housing societies, and transfer maintenance funds to the societies. 13.5 In case of MUTP, resettlement is done as per a special R&R Policy which provides a detailed entitlement matrix. Steps prior to resettlement include: preparation of BSES and Resettlement Action Plan (RAP); and preparation of Resettlement Implementation Plan (RIP) and Environment Management Plans (EMP) for specific sub-projects. The RAP provides overall information on affected households; entitlement framework; land acquisition needs; resettlement sites; transit and permanent housing plans; economic rehabilitation measures; monitoring and impact assessment procedures, grievance redress mechanism, and time schedule for implementing R&R activities. NGOs 32 Maharashtra Slum Areas Act (1971) provides for notifying the slums and for fixing the eligibility criteria of slum dwellers; LA Act (1894) provides for acquisition of land for public purposes; Maharashtra Regional and Town Planning Act (1966) provides for preparation of development plans (DP) to designate land for public purposes, which can be acquired under LA Act; Development Control (DC) Regulations for Greater Mumbai (1991) provide alternative to land acquisition under LA Act 1894 by way of Transfer of Development Rights (TDR); Maharashtra Cooperative Societies Act (1960) provides for establishing, registering and administering the cooperative societies.

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play a key role in the R&R process by assisting in BSES, public information dissemination, and facilitating community participation in surveys, relocation, and post-resettlement phases. Public Information Centres, two-tier grievance redress mechanism, data-base management system, post resettlement support system, and impact assessment remain key aspects of the R&R implementation process. Special efforts made to expedite the resettlement process include steps such as establishment of slum rehabilitation (SRA) cell at MMRDA, motivating real estate developers and inviting proposals for construction of resettlement tenements; timely scrutiny and approval of proposals submitted by developers and grant of TDR benefits; regular supervision for quality control; involvement of NGOs in R&R process; inter-agency co-ordination; protecting cleared lands for project works. Challenges faced during the R&R process relate to meeting expectations of the aid agency, difficulty in resettling shopkeepers due to resistance, court litigations, political interference, relocating religious structures, land acquisition, and coordination among multiple implementing agencies. 13.6 Lessons: Presence of a strong real estate market, innovative slum rehabilitation scheme, participation of private players and NGOs, adoption of formal procedures and mechanisms helps streamline the R&R process. Context specific challenges such as resistance from the commercial encroachers, interference by local leaders, and the lack of agreement on principles may still pose hurdles slowing down the R&R process.

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Annex-2

BACKGROUND NOTE

Introduction / Rationale Most South Asian cities have developed in an unstructured manner and are characterized by informal settlements, which have grown and intensified over many years, driven in more recent decades by accelerated urban migration. Informal settlements are frequently characterized by social and cultural diversity and sustained by a diversified informal economy. Development in the context of the complex and largely informal socio-economic fabric of South Asian cities is thus a difficult and highly challenging proposition. Provision of essential infrastructure, (such as roads, railroads, sewerage and drainage, and water supply), which is needed to provide connectivity and services and to sustain the economic vitality of cities as they grow, will almost inevitably confront populations living in these informal settlements. Objective The objective of this workshop is to reach a consensus, or at least a common understanding, of approaches to resettlement and economic rehabilitation in urban development which are truly developmental and forward-looking. This workshop is not intended to be a forum for debate of issues related to lender policy or the legal provisions of sovereign governments, rather its aim is to transcend this fruitless debate and work out approaches and methods, which seek from the outset, to build socially and economically sustainable outcomes where urban development has an impact on informal settlements. Issues and themes A list of areas to be subjected to the workshop for discussion is presented hereafter:

• Overview: generic issues in cities which contextualize the problem holistically with respect to economic, social, cultural, & technical dimensions of urban development / redevelopment.

• Key issues in urban resettlement, income restoration, and urban economic growth. • Legal and government policy aspects, including land tenure and land use. • Mechanisms for land redistribution; real estate markets & ownership. • Models (case studies) for land redevelopment and growth: China? Latin America? • Compensation versus income restoration and growth. • Shifting from informal to informal sectors of the economy. • Diagnostic approach to corridors and “neighborhoods”.

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• Financing mechanisms • Methods and planning • Communication and consultation.

Participants Indian Government key actors involved in the formulation and implementation of the land acquisition, urban re-development, R&R issues. One or two internationally recognized experts. Intellectuals knowledgeable on urban resettlement issues. Indian planners and implementers, (including NGO representatives specialized in urban resettlement)? Representatives of the civil society. World Bank staff engaged in the area. A professional facilitator. Propose a 2 ½ day meeting. First day to day and a half for presentations; last day – day and a half for workshops and synthesis. Agenda

o Theory approaches (urban land acquisition, resettlement, redevelopment in the context of socio-economic development: is a win-win approach possible?)

o Indian context and experience : legal, institution, sociological

o Lessons from the Mumbai case (MMRDA perspective, WB perspective)

o International experience in urban resettlement for infrastructure (lessons from large infrastructure projects, from other similar urban cases)

o WB policy on involuntary resettlement : how does the bank policies address these issues

o Working groups on topics (Livelihood restoration, Transitioning from slum dweller to formal city dweller, Land tenure ownership, Corridor or neighborhood, Financing mechanisms, Communication/consultation)

o Tentative synthesis on vision, approach, key drivers to get people to move

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Annex-3

LIST OF PARTICIPANTS

Dr. Renuka Viswanathan Secretary, Ministry of Rural Development, GOI Mr. Suresh Chandra Sharma

Director (UPA), Ministry of Urban Employment & Poverty Alleviation, GOI

Mr. Kadar Mohideen Allaudin

Secretary (Highways), Highways Department, Government of Tamil Nadu

Mr. Vikram Kapur MD and CEO, Tamil Nadu Urban Infrastructure Financial Services Ltd.

Mr. Thiru K Deenabandu Secretary, Municipal Administration and Water Supply, Chennai

Mr. Jawaid Akhtar Managing Director, Karnataka Urban Infrastructure Dev. Fin. Corp. (KUIDFC)

Mr. Shivaputra Mallappa Jamdar

Principal Secretary, Revenue Department, Government of Karnataka

Dr. T. Chandra Shekhar Metropolitan Commissioner, Mumbai Metropolitan Region Development Authority (MMRDA), Government of Maharashtra

Mr. Debashish Chakrabarty

Chief Executive Officer, Slum Rehabilitation Authority, Mumbai, Maharashtra

Mr. Milind Mhaiskar Joint Metropolitan Commissioner, MMRDA & Project Director (MUTP), Government of Maharashtra

Mr. Ramanand Tiwari Principal Secretary, Urban Development Department, Government of Maharashtra

Mr. Sanjay Ubale Secretary (Special Projects), Government of Maharashtra

Mr. S. K. Singh Additional Municipal Commissioner, Municipal corporation of Greater Mumbai

Mr. S.S. Kshatriya Principal Secretary (Housing) Government of Maharashtra

Mr. Vasant Baviskar Joint Secretary, Chief Minister's office, Government of Maharashtra

Mr. Sanjay Upadhyay Consultant, Legal, India Ms. Somsook Boonyabancha

Asian Coalition for Housing Rights, Thailand

Mr. David E. Dowall Consultant, Urban Planning Dr. Parsuraman (present by audio)

Director, Tata Institute of Social Sciences, Mumbai

40


Mr. Tongroj Onchan World Bank Inspection Panel Mr. Chaohua Zhang World Bank, social safeguard specialist, EASSD Mr. Frederick E. Brusberg World Bank, regional safeguard advisor, SASES Mr. Guang Zhe Chen World Bank, sector manager, SASEI Mr. Hubert Nove-Josserand

World Bank, urban transport specialist, SASEI

Mr. Stephen Lintner World Bank, senior advisor, ESDQC Mr. I.U.B. Reddy World Bank, social safeguard specialist, SASES Mr. John Roome World Bank, operation director, SARVP Mr. Rachid Benmessaoud World Bank, operation advisor, SACIN Mr. Richard Clifford World Bank, urban specialist, SASEI Mr. Songsu Choi World Bank, urban specialist, SASEI Ms. Elena Correa World Bank, social safeguard specialist, LCSEO Ms. Meera Chatterjee World Bank, social safeguard specialist, SASES Ms. Mridula Singh World Bank, social safeguard specialist, SASES Ms. Sona Thakur World Bank, consultant, SAREX Ms. Sonia Hammam World Bank, sector manager, SASEI Mr. Satya Mishra World Bank, consultant social safeguard Facilitator and logistical support Mr. Lorne Blackman Consultant, facilitator Ms. Sangeeta Anand World Bank, ACS Ms. Maria Pinto World Bank, ACS

41


Annex-4

AGENDA

WORKSHOP

ON LAND ACQUISITION, RESETTLEMENT AND REHABILIATION IN URBAN DEVELOPMENT AND RE-DEVELOPMENT

Organized by the World Bank and the Government of Maharashtra

Bangkok, Thailand, September 10-13, 2006 Sunday September 10, 2006

Time Session 1 Speaker

17: 00 Registration of participants (Ms. Sangeeta Anand / Ms. Maria Pinto)

17:30 Call to order

Facilitator : Mr. Lorne Blackman

Welcome: Mr. Hubert Nove-Josserand

17:45 Launch of the Workshop

17:45 Expectations from the World Bank Mr. Rachid Benmessaoud Operations Advisor, India, WB

18:00 Expectations from the Government of Maharashtra

Mr. Ramanand Tiwari, Principal Secretary (Urban Development),

Govt. of Maharashtra

18:30 Session 1 Chairman : Ms. Sonia

Hammam, Sector Manager, Urban Development, WB

Resettlement in urban development context David Dowall 19:30 Dinner

Monday September 11, 2006

Time Session 2

Indian Background : Policy makers and civil society

Chairman: Mr. Rachid Benmessaoud, WB

9:00 Welcome and overview of the day Mr. Rachid Benmessaoud, WB

9.05-9.30 Government of India’s R&R Policy and Approach

Ms. Renuka Viswanathan Secretary, Ministry of Rural

Development

42


9:30-10:00 Employment and Poverty Alleviation in the context of Urban Development in India

Mr. S.C. Sharma, Ministry of Urban Employment and Poverty

Alleviation

10:00-10:30 Role of Urban Local Bodies in supporting R&R

Mr. Jawaid Akhtar Managing Director, KUIFC

10:30-11:00 Tea break

Session 3 Indian background:

Technical review and World Bank policy

Chairman: Mr. Guang Chen Sector Manger, Transport

11:00-11:30 World Bank policy Mr. Chaohua Zhang

R&R Specialist, WB 11:30-12:00 Legal and policy review – Cases from Indian

cities Mr. Sanjay Upadhayay

12:00-12:30 Urban resettlement issues in India : Emerging views from Civil Society Organizations (by audio link)

Dr. S. Parsuraman, Director - Tata Institute of Social

Sciences 12:45-13:30 Lunch

Session 4

Development opportunities and livelihood improvement

Chairman : Mr. S. C. Sharma

13:30 – 14:00

Case Study: China Mr. Songsu Choi, WB

14:00-14:30 Case study: Mumbai Dr. Chandra Shekhar, Metropolitan Commissioner,

MMRDA, Govt. of Maharashtra

14:30-14:45 Introduction of theme for group discussion : Development perspective, cash or in kind, real estate markets, legal tenure, extra –legal issues

Mr. Eric Brusberg, WB

14:45-15:00 Tea break 15:00-16:30 Group discussion

16:30-17:00 Synthesis from both the group discussions Group reporters, Mr. Eric Brusberg moderates

17:00 Adjourn for the evening Blackman

Tuesday, September 12, 2006

9:00 Welcome back, overview of the agenda for the day

Mr. Hubert Nove-Josserand, WB

Session 5 Land and property related issues

Chairman: Mr. Hubert Nove-Josserand

9:00-9:30 Case study : Bogota and Colombia Ms. Elena Correa, WB

9:30-10:00 Case study: Bangkok Ms. Somsook Boonyabancha, ACHR, Thailand

43


10:00-10:15 Introduction of the theme for group discussion : residence, businesses, affordability, in situ resettlement, slum upgrading

Mr. Richard Clifford, WB

10:15-10:30

Tea Break

10:30-12:00 Group discussions

12:00-12:30 Synthesis of group discussions Group reporters, Mr. Richard Clifford moderates

12:30-13:30

Lunch

Session 6

Implementation Chairman:

Ms. Renuka Viswanathan 13:30-14:00 Case study : Abidjan Mr. Eric Brusberg, WB 14:00-14:15 Case study: Chandigarh Mr. Richard Clifford, WB

14:15-14:30 Introduction of theme for group discussion : base line data, consultation, transparency, grievance redressal, time line, post-resettlement

14:30-14:45

Tea Break

14:45-16:15 Group discussion

16:15-16:45 Synthesis of discussion Group reporters, I.U.B. Reddy moderates

16:45 Wrap-up for the day Blackman Wednesday September 13, 2006 8:30-11:00 Field Visit

Visit of two resettlement sites in Bangkok

Ms. Somsook Boonyabancha

Closing Session

Chairman : Ms. Renuka

Viswanathan 11:30-12:30

Findings and recommendations – Plan for next steps

Mr. Hubert Nove-Josserand Mr. Sanjay Ubale, Secretary,

Govt. of Maharashtra

12:30-12:45 Closing comments, thanks

Mr. John Roome, Operations Director, South Asia Region,

WB

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