Land acquisition issues in infrastructure projects
Student name: Ms Akancsha
Guide: Dr Montu Bose
Year of completion: 2018
Host Organisation: KPMG Global Services Private Limited
Supervisor (Host Organisation): Ms Minakshi Barman
Abstract: Urbanization and fast economic growth in the last two decades have increased the demand of land as infrastructure sector (which primarily comprises of roads, rail, power, utilities) need huge quantities of land (Ghimire et al., 2017). Land Acquisition in India is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. However, majority of infrastructure projects are affected by schedule and cost overruns. One of the primary reasons, in pre-execution phase, is delay in LA process due to resistance from the local community on account of poor compensation and undervalued market price of land (Shete and Kothawade, 2016). As on Nov 2016, 16 percent of the total stalled investment is at risk due to LA problems which accounts to Rs. 692.9 thousand crores1. The purpose of the paper is to identify LA issues and the economic impact of it on infrastructure projects in India. Further, gaps in the LA process and compensation model were identified through detailed study of World Bank Performance Standard, types of compensation models that exist around the world and successful alternative mechanisms adopted in India. The research is based on secondary data collection. The research recommends a forward looking approach to reduce delays and cost overruns in infrastructure project due to LA issues.
Key words- Land Acquisition, compensation, LARR Act, infrastructure projects
