The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has come into effect from 1st January, 2014. What are the key issues which would get addressed with the Act in place? What implications would it have on industrialization and agriculture in India? (UPSC 2014)

The Act corrects the colonial acquisition regime by making land acquisition fair, transparent and welfare-oriented.

• Key issues addressed: arbitrary State acquisition, low compensation, weak consent, absence of social impact assessment, and poor rehabilitation of displaced persons.
• Fairness and transparency: market-linked compensation, prior consent and Social Impact Assessment reduce distress sale and bring affected families into decision-making.
• Rehabilitation: benefits extend beyond landowners to tenants, labourers and other livelihood losers.
• Agricultural protection: restrictions on acquisition of multi-crop irrigated land help preserve fertile land and food security.

Industrialisation may face higher land costs, delays and some slowdown in project implementation, but conflict, litigation and social unrest should fall; agriculture and rural livelihoods gain stronger protection, though industrial land availability may tighten.