Managing Resettlement Concerns in the Indian Mining Sector: The Policy Landscape and the Way Forward

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Managing Resettlement Concerns in the Indian
Mining Sector The Policy Landscape and the Way
Forward
Hill Associates, India Indian Metal and
Mining SectorTurning Risks into
Opportunities   New Delhi, 29 June 2006    
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Snap Shot

• Increasing displacement
• Rising national and international concern
• 90-100 million oustees world over in last 10
  years
• 25 million in India in last 50 years
• Mining induced displacement
• Growing community awareness
• Narmada movement
• Growing assertion levels, protests and violence
• Big investments in quandary
• Community opposition outpacing realization of
  investment
• Stakeholders confidence at a low
• Responses
• The governmentsand the industry's
• Policies and their compliance

Is the challenge likely to get bigger?
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Conflict Prone Scenario
Government Neglect
Industrys blinkered approach
Amenability to mobilization
Rise in Consciousness of rights
Anti government-industry sentiment
More risk prone as opposed to cooperative
atmosphere
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Risk Landscape
Other factors raise severity of community
opposition, making mitigation harder and slower
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Identifying Key Concerns1

• Monetary versus Land-based Compensation
• Subsistence level economy dependent on land
• Vulnerable groups and traditional way of life
• Employment and Livelihood Avenues
• A growing demand as community sees eviction from
  land as a fait accompli
• Loss of traditional livelihood Material
  impoverishment and psychological impact
• Sustainable alternative livelihood options A
  core concern

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Identifying Key Concerns2

• Consultation and Transparency
• Increasing alienation
• Perception that government and industry
  compromise their well being
• Grievance Redressal
• Timely, fair redressal of RR related disputes
• Land Valuation
• Communities not equipped to assess the actual
  worth of land
• Fear fair compensation may not come through

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Policy Response

• What is the current policy landscape?
• National policy 2003
• Most states have RR only for specific projects
• Orissa resettlement and rehabilitation policy
  2006
• Is it inclusive and adequate?
• Can policy check conflict from growing?
• Yes and No.
• Need for an enabling environment

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Policy Analysis1

• Monetary versus Land-based Compensation
• Land for land not mandatory
• ORRP increases compensation equity share, but
  utility remains suspect
• Employment and Livelihood Avenues
• Ambiguous provision
• Individual as unit of employment
• Limited labor absorption
• Expectation-delivery gap would continue
• Training for self employment to one family member

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Policy Analysis2

• Consultation and Transparency
• Crucial for involuntary resettlement to turn
  into voluntary resettlement process
• ORRP provides for consultation with village
  committee
• Grievance Redressal
• Neither NPRR nor ORRP breaks new ground on this
  issue
• Multi-tier arrangement, but not by independent
  agency
• Land Valuation
• Direct purchase of land in ORRP
• Double-edged sword

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Policy Analysis3

• Development Programs
• Dovetailing regular development programs into RR
  scheme
• Roles and responsibilities of implementing agency
  not clear
• Role of the Revenue Department
• Lack of staff and training, and sensitization
• In time delivery of tasks remains suspect

Policy includes most direct and related RR
concerns but doesnt address long term impacts
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Components of Effective Policy

Policy
Implementation, monitoring and quick dispute
resolution key to success of the policy
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Policy Utility

• Effective tool for Conflict Minimization
• Balance interests of the industry, developmental
  objectives of government, and socio-economic
  needs of PAFs
• There cannot be one size fits all policy that
  addresses all concerns comprehensively

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The Way Forward1

• For the Government
• Create an enabling environment
• Land rights and land settlement
• Regulator for RR
• Mandatory budgetary allocation for community
  development for project approval
• Top priority to sensitising administrative and
  police machinery
• Provide for sustainable alternative livelihood
  options
• Common property resources and allied activities
• Family as unit for vocations/employment
• Marketing opportunities for small scale
  enterprises

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The Way Forward2

• For the Industry
• No short cut to obtaining the social license to
  operate
• Compliance is bare minimum, need to go beyond it
  to create value
• Early and sustained engagement with the community
  
• Attitudinal change