Context: Land acquisition has emerged as the single largest bottleneck in India’s infrastructure projects reviewed under PRAGATI (Pro-Active Governance and Timely Implementation). Government data show that land acquisition alone accounts for 35% of project delays, while environmental clearances and right-of-way (RoW) issues together contribute to 73% of delays nationwide. This underscores a persistent governance challenge at a time when India is scaling up capital expenditure to fuel economic growth.
What is Land Acquisition?
Land acquisition refers to the government’s power to acquire private land for public purposes such as roads, railways, defence, industrial corridors, urban infrastructure, and social projects.
In India, this process is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013.
Key safeguards under the Act include:
- Social Impact Assessment (SIA): Mandatory assessment of impacts on livelihoods, infrastructure, and local communities before acquisition.
- Consent Norms: Prior consent of 80% of affected families for private projects and 70% for Public–Private Partnership (PPP) projects.
- Compensation Framework:
- 4× market value in rural areas
- 2× market value in urban areas
- Solatium: An additional 100% of compensation to account for the involuntary nature of acquisition.
While these provisions strengthen fairness and transparency, they also lengthen timelines and increase project costs.
Why Does Land Acquisition Cause Delays?
Several structural and administrative factors contribute to delays:
- Lengthy Procedures: SIA studies, public hearings, and consent processes are time-consuming.
- Litigation Risks: Disputes over valuation, consent, and rehabilitation often lead to prolonged court cases.
- Federal Complexity: Land is a State subject, leading to uneven implementation across states.
- Social Resistance: Inadequate trust, fear of livelihood loss, and displacement concerns fuel opposition.
India’s Expanding Infrastructure Landscape
Despite these hurdles, India’s infrastructure push is unprecedented:
- Capital Investment: The Union Budget 2025–26 allocated ₹11.21 lakh crore (3.1% of GDP) for capital expenditure.
- Roads: Second-largest road network globally; 1,46,145 km of National Highways (2024).
- Railways: 99.2% electrification of the Broad Gauge network by 2025.
- Aviation: Third-largest domestic aviation market after the US and China.
- Ports & Shipping: Under Sagarmala 2.0, cargo handling reached 1,630 MT, improving India’s global shipment ranking from 44th to 22nd.
- Urban Transport: Third-largest metro network globally, spanning 1,013 km across 23 cities.
- Rural Water: Jal Jeevan Mission achieved 80% rural tap water coverage by early 2025.
Way Forward
To reconcile rapid infrastructure growth with social justice:
- Digitise Land Records: Reduce disputes through clear titling.
- Time-bound SIAs: Standardise and streamline assessment timelines.
- Negotiated Settlements: Promote land pooling and consent-based models.
- Stronger Rehabilitation: Ensure livelihood security to build trust.