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The Land Acquisition Bill-- A Critique and a Proposal

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Author Info

  • MAITREESH GHATAK

    (London School of Economics)

  • PARIKSHIT GHOSH

    (Department of Economics, Delhi School of Economics, Delhi, India)

Abstract

The new Bill on land acquisition recently tabled in Parliament is well intentioned but seriously flawed. Its principal defect is that it attaches an arbitrary mark-up to the historical market price to determine compensation amounts. This will guarantee neither social justice nor the efficient use of resources. The Bill also places unnecessary and severe conditions on land acquisition, such as restrictions on the use of multi-cropped land and insistence on public purpose, all of which are going to stifle the pace of development without promoting the interests of farmers. We present an alternative approach that will allow farmers to choose compensation in either land or cash, determine their own price instead of leaving it to the government’s discretion, and also reallocate the remaining farmland in the most efficient manner. Our proposed method involves a land auction covering not only the project site but also the surrounding agricultural land.

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Bibliographic Info

Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 204.

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Length: 20 pages
Date of creation: Sep 2011
Date of revision:
Handle: RePEc:cde:cdewps:204

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References

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  1. Deininger, Klaus & Jin, Songqing & Nagarajan, Hari K., 2007. "Determinants and consequences of land sales market participation : panel evidence from India," Policy Research Working Paper Series 4323, The World Bank.
  2. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521536721, October.
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Cited by:
  1. Craig Johnson & Arpana Chakravarty, 2013. "Re-Thinking the Role of Compensation in Urban Land Acquisition: Empirical Evidence from South Asia," Land, MDPI, Open Access Journal, vol. 2(2), pages 278-303, June.
  2. Saumik Paul & Vengadeshvaran Sarma, . "The Livelihood Effects of Industrialization on Displaced Households: Evidence from Falta Special Economic Zone," Discussion Papers 13/09, University of Nottingham, CREDIT.
  3. Ram Singh, 2012. "Inefficiency And Abuse Of Compulsory Land Acquisition--An Enquiry Into The Way Forward," Working papers 209, Centre for Development Economics, Delhi School of Economics.
  4. Ghatak, Maitreesh & Mitra, Sandip & Mookherjee, Dilip & Nath, Anusha, 2013. "Land Acquisition and Compensation in Singur: What Really Happened?," CAGE Online Working Paper Series 121, Competitive Advantage in the Global Economy (CAGE).
  5. repec:cge:warwcg:120 is not listed on IDEAS
  6. Paul, Saumik & Sarma, Vengadeshvaran, 2013. "The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal," ZEW Discussion Papers 13-083, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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