THE DEVELOPMENT DILEMMA

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The Development Dilemma Displacement in India

S. Parasuraman Tata Institute of Social Sciences Bombay, India

with an Introductory Study by Michael M. Cernea

in association with Palgrave Macmillan

First published in Great Britain 1999 by

MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 6XS and London Companies and representatives throughout the world

A catalogue record for this book is available from the British Library.

ISBN 978-1-349-27250-1 ISBN 978-1-349-27248-8 (eBook) DOI 10.1007/978-1-349-27248-8

First published in the United States of America 1999 by

ST. MARTIN'S PRESS, INC., Scholarly and Reference Division, 175 Fifth Avenue, New York, N.Y. 10010

ISBN 978-0-312-22010-5

Library of Congress Cataloging-in-Publication Data Parasuraman, S. The development dilemma : displacement in India / S. Parasuraman ; with an introductory study by Michael M. Cemea. p. cm. Includes bibliographical references and index. ISBN 978-0-312-22010-5

1. Economic development projects-Social aspects-India. 2. Socially handicapped-India. 3. Land settlement-India. 4. Economic assistance, Domestic-India. I. Tille. HC440.E44P37 1999 338.954-dc21 98-30659

CIP

© S. Parasuraman 1999 excluding Introductory Study © Michael M. Cernea 1999 Softcover reprint of the hardcover 1st edition 1999

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission.

No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the , Copyright Licensing Agency , 90 Tottenham Court Road London W1P 9HE.

Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages.

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This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources.

10 9 8 7 6 5 4 3 2 08 07 06 05 04 03 02 01

To my mother, Pushpa Datta and Ankita Anirban, my daughter

Contents

List of Tables xn Abbreviations XIV

Glossary xvi Acknowledgements xxii

Development's Painful Social Costs Introductory Study by Michael M. Cernea 1

The Nature of Involuntary Resettlement 2 Social Costs: Theory, Policy and Practice 4 Forced Resettlement in Developed Countries 7 The Global Magnitude of Displacement 9 Displacement in India 10 Narmada: International Aid, Impoverishment and Resistance 12 The Absence of Policy and Legal Frameworks 20 Resettlement and Development 24 References 25

Part I THE FRAMEWORK

1 Development, Displacement and Resettlement in India: An Overview 35

1.1 Introduction 35 1.2 Capitalism, Colonialism and Development 36 1.3 The Land Acquisition Act of 1894 and the Power of the State 41 1.4 Dimensions of Impoverishment 44 1.5 Why Has Displacement Been Problematic in the Indian

Context? 47

vii

viii Contents

1.6 Demographic and Social Factors Exacerbating the Impact of Displacement 49

l. 7 The Magnitude of Population Displacement 50 1.8 The Case Studies 52

2 Assessing the Impact of Displacement: Methodological Issues

2.1 Problems of R&R Studies 2.2 Research Design 2.3 Data Available 2.4 Difficulties Obtaining Data 2.5 R&R Monitoring and Evaluation Strategy Appendix 2A

Tracer Study Techniques Appendix 2B

The Household Survey: Selection of Households Appendix 2C

The Focus Group Method Appendix 2D

Overview of Data Collection and R&R Issues

57

57 58 62 64 66

69

72

75

77

3 Resettlement and Rehabilitation Policy in Practice 81

3 .I Introduction: The Lack of Adequate Policy 81 3.2 The Land Acquisition Process 82 3.3 The Threshold Approach to Basic Amenities 85 3.4 Provisions in Industrial Projects 87 3.5 Provisions in Irrigation Projects 89 3.6 Constaints and Contradictions 91 3.7 The Use of Compensation Money 92 Appendix 3

An Example of New R&R Policy: The National Thermal Power Corporation (NTPC) l 0 l

Contents ix

Part II THE CASE STUDIES

Map: Location of Case Study Projects 106

4 Displacement Due to the Durgapur Steel Plant 107

4.1 Introduction 107 4.2 Land Acquisition 108 4.3 Resettlement and Rehabilitation of Displaced People 109 4.4 Rehabilitation of Households from Partially Affected Villages Ill 4.5 Population Pressure: Squatter Settlements 114 4.6 Conclusions 116

5 Displacement Due to the Jawaharlal Nehru Port 118

5.1 Introduction 118 5.2 The Birth of the Twin-city Concept 119 5.3 Land Acquisition and People's Protest 121 5.4 Consequences of Displacement 123 5.6 Conclusions and Recommendations 128

6 Displacement Due to the Bolani Iron Ore Mines 132

6.1 Introduction 132 6.2 Socioeconomic Conditions in the Original Villages 133 6.3 Socioeconomic Conditions in Hutments 140 6.4 The Environmental Impact of Mining in the Bolani Region 144 6.5 Conclusions 148

7 Displacement Due to the Maharashtra II

Irrigation Project 151

7.1 Introduction 151 7.2 The Social Background of the Displaced People 152 7.3 R&R Provisions 154 7.4 Resettlement Patterns 155 7.5 Economic Conditions After Resettlement 156 7.6 Conclusions 164

X Contents

8 Displacement Due to the Upper Krishna Irrigation Project 167

8.1 Introduction 167 8.2 The Displacement and Resettlement Process 168 8.3 Social and Economic Consequences of Displacement 170 8.4 Conclusions 177

9 Displacement Due to the Sardar Sarovar Project 179

9.1 Introduction 179 9.2 The Narmada Water Disputes Tribunal Award 181 9.3 R&R Policy in the Three States (1980-93) 182 9.4 Socioeconomic Conditions in Manibeli Prior to

Displacement 183 9.5 The R&R Process 187 9.6 Socioeconomic Conditions in Parveta 193 9.7 Conclusions 204

Part III CONCLUSIONS

10 The Consequences of Displacement for Women 211

10.1 Introduction 211 10.2 Consequences of Industry-induced Displacement 214 10.3 Consequences of Mine-induced Displacement 218 10.4 Consequences of Irrigation Projects and Dams 220 10.5 Conclusions 226

11 The Narmada Movement: People's Protests and the Potential for National Policy 229

11.1 Introduction: The Incremental Approach 229 11.2 The Sardar Sarovar Project and People's Action 232 11.3 The R&R Policy for the SSP-displaced Evaluated 248 11.4 The Potential for National R&R Policy 250

Contents XI

Appendix II The R&R Policies of Gujarat, Maharashtra and Madhya Pradesh 253

12 Conclusions

12.1 General Observations 12.2 Some Emerging Issues 12.3 Concluding Comments

Notes References Index

255

255 259 264

267 280 292

List of Tables

No. Page

2.1 Research design of the studies 60 2.2 Stages of the M&E strategy 68 3.1 Distribution of households from completely displaced

villages by use of compensation money received for land 94 3.2 Distribution of households in partially affected villages by

use of compensation money received for land 99 4.1 Sources of livelihood of resettled households in Durgapur in

1989-90 109 4.2 Percentage distribution of households by extent of land

acquired in the 1950s 113 5.1 JNP: Per capita monthly income of project-affected

households (base 1991-92) 128 5.2 Percentage distribution of households by caste and monthly

per capita income 129 6.1 Population of Bolani, Balagoda and Champua, 1951-90 134 6.2 Households of original inhabitants and migrants in Bolani,

Balagoda and Champua, December 1989 136 6.3 Land acquisition and compensation payment in the original

villages 138 6.4 Income-generating activities of main earners in original and

migrant households in Champua, Balagoda and Bolani 139 6.5 Economic conditions of households in original village,

December 1989 142 6.6 Occupation of main earners in hutments 143 6.7 Main occupation of women in hutments 143 7.1 Number of PAPs, land granted and resettlement location for

fully submerged villages 154 7.2 Contribution of each source of livelihood to total income 157

xii

List of Tables xiii

No. Page

7.3 Percentage distribution of households by caste and by per capita monthly income, 1990 160

7.4 Annual per capita income by size of landholding, 1990 160 8.1 Percentage of households in fully affected villages 171 8.2 Share of income derived from various sources, of landed

and landless households, 1991 172 8.3 Per capita monthly income of various castes in completely

affected villages, partially affected villages and unaffected villages, 1991 174

9.1 Sources of income prior to displacement in Manibeli 187 9.2 Parveta crop yields, 1990-91 196 9.3 Distribution of households in Parveta according to share

of income derived from various sources (n=l68) 197 9.4 Distribution of Parveta households by per capita expenditure

and calorie intake, 1990-91 198 9.5 Children aged 6-14 attending school, 1991-92 202

Abbreviations

ASP BIOM BJA BJP CAFs CIDCO CIL CPM/CPI(M) css DP(s) ORO DSP EGS GO(s) GOG GOI GOK GOM GOMP GR(s) HHs HoH HSGU ICDS ILO IRDP ITI JNP JNPT JRY KIW

Alloy Steel Plant Bolani Iron Ores Mines Bharat Jan Andolan Bharatiya Janata Party Canal-affected families City and Industrial Development Corporation Central Institute of Labour Communist Party of India (Marxist) Centre for Social Studies, Surat Displaced Person(s) District Rehabilitation Office(r) Durgapur Steel Plant Employment Guarantee Scheme Government Order(s) Government of Gujarat Government of India Government of Karnataka Government of Maharashtra Government of Madhya Pradesh Government Resolution(s) Households Head of household HS Gour University, Sagar Integrated Child Development Scheme International Labour Organization Integrated Rural Development Programme Industrial Training Institute Jawaharlal Nehru Port Jawaharlal Nehru Port Trust Jawahar Rojgar Yojana Kalinga Iron Works

XIV

Abbreviations XV

KVIC Khadi and Village Industries Commission LAA Land Acquisition Act 1894 LAO Land Acquisition Office(r) LPC Land Purchase Committee M&E Monitoring and Evaluation MoE/MoEF Ministry of Environment & Forests Mil Maharashtra Irrigation II Project NAPM National Alliance for Peoples' Movement NBA Narmada Bachao Andolan NCA Narmada Control Authority NEP National Employment Programme NICMAR National Institute of Construction and Management NSS National Sample Survey NTPC National Thermal Power Corporation NWDT Narmada Water Disputes Tribunal PAFs Project-affected families PAPs Project-affected persons PCI Per capita income PDS Public Distribution System PHC Primary Health Centre PWD Public Works Department PWP Peasants and Workers Party RO Rehabilitation officer R&R Resettlement and rehabilitation RSSS Rajpipla Social Service Society SAIL Steel Authority of India, Limited SC&ST Scheduled Castes and Scheduled Tribes sse Secondary School Certificate I Xth Standard SSP Sardar Sarovar Project TISS Tata Institute of Social Sciences, Bombay To I Times of India UKP Upper Krishna Project

Glossary

Adivasi

Ambadi

Anganwadi

Banjaras

Benami

Bhagat

Indigenous people, often associated with tribals.

A green vegetable.

A creche, usually run by the state.

A nomadic tribal group in Rajasthan, Maha­rashtra, Kamataka.

Land or other assets held in someone else's name, generally to evade regulations such as the Land Ceilings (Holding) Act, the income tax act etc.

Variously used for sacred men, traditional medical practitioners, mendicants and devotees in various parts of India. In the tribal context, usually denotes traditional medical practition­ers.

Bharatiya Janata Party A right-wing, Hindu political party.

Bhilori Language spoken by the Bhils.

Bhils

Bhindi/bhendi

Bhuyia

Bid is

The largest group of tribals in Western India.

Lady's finger, a vegetable.

A tribal group in Eastern India, particularly in Orissa and Bihar; a Hindu caste group is also known by the same name.

Tobacco rolled in Apta (Bauhinia racemosa) or Temru (Diospyros melanox/on) leaves is called bidi or local cigarette.

xvi

Big has

Brahmins

Chowli

Collectorate

Dais

Dalits

Denotified tribes

Ghee

Ghar-jawai

Gobar gas

Goval

Gram Sabha

Glossary xvii

An indigenous measure of land, the ratio of the bigha to the acre varies from region to region.

The highest caste in the Hindu caste system.

A green leguminous vegetable, a pulse.

Office of the administrator at the District level. The collector is responsible for revenue collec­tion, the maintenance of law and order and all other administrative affairs.

Traditional birth attendant, still very common in rural India.

Literally the oppressed, denotes former un­touchables and other low castes.

In the mid-nineteenth century, the British listed a number of groups as criminal caste and tribes, and all individuals born into these caste and tribal groups were regarded as criminals and treated accordingly. This continued until the 1960s, when the Government of India de­notified them, that is, removed these groups from the list of criminal tribals. Since then, these groups have been known as denotified tribes.

Clarified butter.

Normally, marriages in India are virilocal. If the husband resides in his wife's paternal house, he is called a ghar-jamai. If the bride­groom's family was incapable of paying the brideprice, the groom provided labour to the bride's family for a defined period of time.

Biogas, used as a fuel, derived from cattle dung.

A caste group responsible for care of cattle belonging to a lineage/clan or hamlet/village.

Association of all the adults, usually the males, of a village. Sometimes this body, the lowest

xviii

Gujarati

Hadia(/)

Indira Awas Yojana

Jagirdar

Jagirdari

Jag irs

Jalgars

Jal Samadhi

Jamin Bachao Samiti

Jowar

Karadis

Khadi

Kolis

Kurburs

Lingayats

Lok Sabha

Glossary

unit of government, comprises one adult from each household residing in the village.

A language, mostly spoken in the state of Gujarat.

A caste in eastern India whose traditional oc­cupation was brewing rice beer. Hadia refers to rice beer.

A low-cost housing scheme for the poor pro­moted by the Government of India in the name of former prime minister Mrs Indira Gandhi.

The holder of a Jagir.

The system of Jagirs.

The land and other revenues of certain area assigned to an individual who is also given the power to administer the area in lieu of services rendered or as a mark of favour.

Fisherpeople of western India, particularly in Karnataka.

Suicide by submergence in a body of water, such as a river, as a mark of protest.

In local Marathi language, this means 'Save the Land Committee'.

Sorghum.

An agricultural caste group in coastal Maharashtra.

Handwoven cloth.

Caste in western India which includes many fishers, particularly in Maharashtra.

A low-caste group in north Karnataka.

Peasant caste of south India, particularly in Karnataka (an upwardly mobile, politically powerful group; located at the middle level of Hindu caste system).

House of Peoples in the Parliament of India.

Mahato

Mahua

Malis

Marathas

Marathi

Morcha

Munda

Nalla

Narmada Bachao Andolan

Glossary xix

Refers here to a tribal group in the Chotanag­pur Plateau in eastern India; a caste group with similar name exists in West Bengal.

Madhuca indica, Madhuca latifolia.

The caste of gardeners.

Peasant caste of Maharashtra in the western part of India.

The language spoken in the state of Maha­rashtra.

A procession as a mark of protest, also a front.

A tribal group in eastern India. In 1991, the Munda group numbered over 7 million people.

Drain/water course.

A peoples' movement to save the Narmada river and its people from the ills of develop­mental project, initiated in the 1980s.

Narmada Dharnagrastha Committee of Narmada Dam affected Samiti people

Narmada Nigam

Pada

Panchayat

Patta

Purdah

Raiyats

Sal

A government agency (corporation) set up to implement the developmental projects (dams and hydel) on the Narmada, particularly the Sardar Sarovar Project in Gujarat State.

Hamlet or a village.

A local self-government involving one or more villages, constitutionally recognized.

Lease or title deed.

Literally the veil, refers to the system of seclusion of women, exclusion of women from the public sphere, decision-making processes etc.

Cultivators.

Shorea robusta.

XX

Samiti

Scheduled caste

Scheduled tribe

Shiv Sena

Sutars

Swaraj

Tadvi

Talati

Tapu

Tehsilltahsil/taluka

Tuar

Vasava

Zamin

Zamindari

Glossary

An association.

(Dalit) Caste groups listed in the Vth schedule of the Constitution of India for preferential treatment (positive discrimination) in education and government employment; list renewed/modified every l 0 years by Presidential promulgation.

Tribal groups listed in the Vth schedule of the Constitution of India for preferential treatment (positive discrimination) in education and governmental employment renewed, modified every 10 years by Presidential promulgation.

An extreme right-wing organization in Maha­rashtra. At present, it is the ruling party in the state.

The caste of carpenters.

Self-rule.

A subgroup of the Bhil tribe, mostly in Gujarat and Maharashtra, living along the Narmada river.

Land revenue collector and keeper of land records at the village level.

An island formed by backwaters of a reservoir.

A unit of revenue and administration. Several such units constitute a district or Zilla.

A kind of pulse.

A subgroup of the Bhil tribe, in Maharashtra along the Narmada river.

Land (Persian).

The system of land tenure and taxation in­volving Zamindars; also the jurisdictional area of the Zamindar.

Zamindars

Zilla Parishad

Glossary xxi

From the Persian Zamin, literally the keeper of the land (dar= keeper). In the pre-British period, the Zamindar was responsible for col­lecting the revenue from the land held in com­mon by the cultivators and villagers. The Za­mindar was not the landowner but merely a tax farmer who paid certain proportion of the tax revenue collected to the state. The British perceived the Zamindars as the actual land­owners and the cultivators as tenants.

Local self-government at the district level responsible for all development activities.

Acknowledgements

At the Institute of Social Studies, The Hague, I am thankful to Gabriele Dankert, George Groenewold, Liesbeth Heering, Azfar Khan, Bridget O'Laughlin, Eric Ross, Maitreye Krishnaraj, Niru Acharya, Purnendu Ka­voori, Rekha and A jay Tanka, Shanti George and other friends who facili­tated development of the book.

At the Tata Institute of Social Sciences, Bombay, I am grateful to Armaity Desai, Sarthi Acharya, Vinay Kamat, Nandini Rao, Bipin Das and several other colleagues who worked with me on projects used as case studies in the book.

Medha Patkar, Sripad Dharmadhikari, B.D. Sharma and other col­leagues in the National Alliance of Peoples Movement and Bharat Jan An­dolan enabled me to learn from grassroots concerns. I am thankful to all of them.

I am extremely thankful to Ms. Jacqueline de Vries and her colleagues at the ISS Publications Department for meticulous and painstaking work in editing the manuscript. I am thankful to Gary Debus for all his support throughout the preparation of this book.

I am thankful to three reviewers and their elaborate comments which enabled me to substantially revise the manuscript. I am thankful to Dr Michael Cernea for his introduction to the book.

I am thankful to my foremost guru Professor Marc Wuyts for his guid­ance and support in writing this book. My involvement in rehabilitation work following the 1993 Marathwada earthquake, my membership in the Government of India committee reviewing the controversial Tehri Hydro­electric Project, and a short stint with Oxfam considerably diverted my attention from the book. The feeling that Marc would be happy to see this book kept me going. My wife Sulabha, and my daughter Mukta provided enormous support which enabled me to participate in a number of projects and complete the book. I am grateful to them.

S. Parasuraman April 1998 The Hague