The right to fair compensation and transparency land acquisition, rehabilitation and resettlement act, 2013 has come into effect from 1 January 2014. What implication would it have on industrialisation and agriculture in India?

Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (commonly referred to as the Land Acquisition Act, 2013) has significant implications for industrialization and agriculture in India. Here are some key implications:


  • Increased Compensation: The Act ensures that the affected landowners receive fair compensation for their land, which is higher than the previous provisions. This may lead to increased costs for industries acquiring land, potentially affecting their profitability and investment decisions.
  • Delays and Administrative Burden: The Act introduced stricter provisions for land acquisition, including mandatory social impact assessments and consent requirements. This has led to longer and more complex acquisition processes, resulting in delays in project implementation and increased administrative burden for industries.


  • Protection of Farmers’ Interests: The Act aims to protect the interests of farmers and other affected landowners by providing them with compensation and rehabilitation and resettlement measures. It ensures that farmers are adequately compensated for the loss of their land and receive assistance for rehabilitation and resettlement.
  • Land Availability for Agriculture: The Act imposes restrictions on the acquisition of multi-cropped irrigated land, aiming to preserve agricultural productivity and food security. This helps in safeguarding agricultural land from being diverted for non-agricultural purposes, thereby maintaining the availability of fertile land for farming.

Land Acquisition Act, 2013 strikes a balance between the need for industrialization and protecting the rights of landowners, particularly farmers. However, its implementation has faced challenges, including delays in land acquisition processes, disputes over compensation, and concerns over the impact on industrial growth. The act has sparked debates on finding a balance between development goals and protecting the rights and livelihoods of affected communities.


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