Ever since the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARRA) or in short Land Acquisition Act (LAA) 2013 – passed by then UPA dispensation – came in to force from January 1, 2014 not even 100 acres of land has been acquired all over the country.
Indeed, in mid-2014 majority of chief ministers (CMs) including from Congress ruled states had during consultations initiated by Modi – government emphatically stated that it was impossible to acquire land under LAA (2013) and that this was becoming a major stumbling block in the way of development.
Sensing the mood and in the true spirit of cooperative federalism – inculcated by hon’ble prime minister in every aspect of governance and in law making processes – the new government proposed necessary amendments to the Act. These were intended only to ease the procedures even as all basics were left un-touched.
Now, even as the process of getting amendments approved by the parliament is under way, a huge propaganda machine has been set in motion by Congress and other opposition parties [also roping in some members of NDA (National Democratic Alliance) viz., RSS, Akali Dal etc] to debunk these as anti-farmer and anti-agriculture.
Their argument is based on the premise that land will be ‘forcibly’ taken away from farmers and given to industrialists. Rahul Gandhi, vice-president, Congress went that far to allege that Modi had taken money from industrialists for funding his election campaign and he will now use land acquired from farmers to repay this.
Rahul’s remark is deeply embedded in political colour and deserves to be dismissed as sheer vilification campaign purportedly to dent the image of Modiji. Even so, the latter has as a matter of abundant caution clarified in no ambiguous terms that under the Act no land shall be acquired for giving to industrialists.
A more serious part of the charge is that land taken away from agriculture for setting up of industries will stultify growth of former and strangulate farmers making them even poorer. It is based on a very myopic view that once a farmer looses land – his only source of income – he will have nothing else to fall back.
They don’t even want to recognize the fact that he will get compensation @ 4 times market value of land and he can use the money for buying land at some other place albeit by paying a lesser amount and investing balance for a regular income stream. And, there is provision for a job to a member of family on the project.
What these self-appointed benefactors of farmers do not realize is that the mission of hon’ble prime minister is to promote growth of both industry and agriculture. Indeed, the land bill mooted by Modi – dispensation is one major step in that direction. He wants the two to complement each other.
So, when the land is acquired to build irrigation, rural roads, affordable housing, provide electricity and other infrastructure, all this will help farmers increase agricultural output, reduce production cost, increase realization from sale and thus boost his income. Clearly, he will earn more from less land.
When, land is taken for building industrial corridors, setting up rural industries through the length and breadth of the country, lay railway networks and gas pipelines, build national highways, ports etc, this will create jobs for kith and kin of farmers and landless workers (they are a huge 300 million).
The acquisition of land is crucial to success of ‘Make in India’ initiative that Modiji wants to use as a harbinger for making it a manufacturing hub and increase its share in GDP from current 15% to 25% in ten years from now. It is very basic to absorbing 10 million youth who enter job market every year.
Rapid development of industry and services will create better opportunities for increasing jobs/incomes. And, this is possible without encroaching on agricultural land. In this regard, Dr Arvind Panagariya, vice-chairman, NITI (National Institute for Transforming India) Aayog of India has cited a study to show that area under non-agricultural use which includes housing, industry, offices, roads, railways among others was only 8% in 2011-12 while 15 years earlier, in 1997-98, this proportion was 7%.
Despite this mere 1 percentage increase in non-agricultural use of land, there was accelerated growth in GDP during those 15 years. According to Panagariya, this has produced more gains in per capita income and poverty reduction than what had been achieved over the entire 50 preceding years. This should be good enough to bust a myth – being propagated by vested interests – that industrial growth will come at expense of agriculture.
Even while providing land to meet needs of industry and infrastructure development, farmers will have enough stock of land for sustaining high levels of agricultural production and ensure food security. China’s cultivable land area is less than India and yet its food production is more than double of ours. Therefore, land is not a constraint; what we need is higher yields based on modern technology and improved agricultural practices.
In India, agriculture employs 50% of the workforce but its share in GDP is only 15%. Workers in agriculture are significantly poorer than the other 50% employed in industry and services. Clearly, agriculture is grossly un-remunerative and farmers are leaving. According to a survey by Lokniti, 62% of all farmers say that ‘they would quit farming if they get a job in the city’. As for their children, 76% say ‘they would like to take a profession other than farming’.
It is therefore, logical to give them what they want and that too when possibilities for finding jobs in industries are unlimited. Indeed, countries where industry and services have grown at a faster rate than agriculture are also those recording high growth of 6% over long term are ones. Hence, there is urgent need to create conditions that help farmers migrate to better paid jobs outside agriculture as happened in South Korea and Taiwan in 60s and 70s (see Panagariya’s blog on NITI Aayog website).
This is what Modi – dispensation is doing vide improving ease of doing business, granting fast approvals, making decisions policy driven and transparent and removal of all impediments especially by ensuring smooth and timely acquisition of land. The proposed amendments to LAA (2013) precisely seek to achieve this.
These will be a win-win for farmers, landless labor and millions of other poor looking for jobs and income enhancing opportunities. It will put all 3 sectors viz., industry, services and agriculture on a high growth trajectory bringing all round prosperity. These also hold the key to sustaining investor sentiment [news of a logjam in Rajya Sabha and apprehension that bill may not pass so easily triggered a big sell-off by foreign institutional investors (FIIs)] and garnering funds for India’s development needs.
The 125 crores (1.25 billion) people of this great country must not get swayed by misleading propaganda unleashed by Congress (who after having allowed/abetted large-scale mis-appropriation of farmers land at throw-away prices – in some cases, no compensation at all – is now shedding crocodile tears for their interests) and lend full support to Modiji in securing early passage of the amendments.
Even as the land bill is now with a joint committee of both houses of parliament and its recommendations will be available at the commencement of monsoon session in mid-July, 2015, it is incumbent on people in various constituencies to prevail upon their respective members of parliament (MPs) – irrespective of parties they belong to – to lend support so that we have the law in place within this year itself.