Project-Induced Displacement & Compensatory Models: A Cross-Jurisdictional Analysis

Abstract

The aim of the project is to understand the international best practices in compensation of local people when project-induced displacement and subsequent afforestation takes place. There are international guidelines and recommendations on the approach that countries must adopt towards re-settlement of displaced communities and afforestation. Based on the framework provided by the international instruments, India has created national laws and rules to facilitate the timely rehabilitation of the communities displaced by industrial projects and the loss of green cover caused. There are several shortcomings in the national regime for compensation and afforestation. The initial section deals with the question why compensatory afforestation has failed in India. The problems in the national laws are critically analyzed to highlight the reasons for the same. It is followed by a study on compensation models followed in other countries such as China and Peru. The frameworks recommended by IFC and World Bank are also elaborated to provide a comparative framework to assess the compensation models implemented in India and abroad vis-a-vis the normative frameworks. Towards the conclusion, it is argued that even though funds are available there is no community participation and there is hugely inefficient project management in the compensatory afforestation efforts undertaken in India. This directly affects the amount of compensation and income that people receive from afforestation activities. thereby defeating the aim of the compensatory afforestation regime.