Employment under R&R Policy: A Comprehensive Guide to Rehabilitation and Resettlement Employment Provisions

The concept of Rehabilitation and Resettlement (R&R) policy encompasses a critical aspect of employment opportunities for Project Affected Families (PAFs) who lose their land and livelihood due to development projects. This comprehensive examination explores how R&R policies ensure livelihood restoration and employment security for displaced communities, particularly focusing on employment provisions under various frameworks and their real-world implementation.

Understanding R&R Policy Framework

Legal Foundation and Scope

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, represents the cornerstone of modern R&R policy in India. This landmark legislation came into force on January 1, 2014, replacing the outdated Land Acquisition Act of 1894. The Act fundamentally transforms the approach to land acquisition by making rehabilitation and resettlement an integral part of the land acquisition process.

Under this framework, affected families include not only landowners but also agricultural laborers, tenants, sharecroppers, artisans, and those working in the affected area for three years prior to land acquisition. This expanded definition ensures that employment provisions reach those whose primary source of livelihood is affected by land acquisition, even if they don't own land.

R&R Employment Entitlements under the Second Schedule

The Second Schedule of the RFCTLARR Act, 2013, provides comprehensive employment-related entitlements for affected families. Item 4 of the Second Schedule specifically addresses "Choice of Annuity or Employment" and mandates that the appropriate Government shall ensure affected families are provided with three distinct options:

Option A: Employment Opportunity

• Where jobs are created through the project, provision for employment at minimum wage rates to at least one member per affected family

• Includes suitable training and skill development in required fields

• Alternative arrangements for employment in other projects if direct project employment is unavailable
  

Option B: Lump Sum Payment

• One-time payment of five lakh rupees per affected family

• This represents a significant increase from earlier compensation amounts and provides immediate financial security

Option C: Annuity Payment

• Monthly payments of not less than two thousand rupees per family for twenty years

• Includes appropriate indexation to the Consumer Price Index for Agricultural Labourers

• Provides long-term income security with inflation protection

Corporate Implementation: Coal India Limited's R&R Framework

Evolution of CIL's R&R Policy

Coal India Limited (CIL), being the world's largest coal mining company, has developed one of the most comprehensive R&R policies in the corporate sector. The CIL R&R Policy 2012 represents a significant evolution from earlier policies, incorporating flexibility for subsidiaries while maintaining broad framework consistency.

The policy recognizes that opencast mining requires large land areas and population growth in eastern India makes land acquisition increasingly difficult. To address these challenges, CIL has adopted a multi-pronged approach to employment under R&R:

Employment Norms and Provisions

Land-to-Employment Ratio: CIL generally follows a norm of two acres of land for one employment opportunity. However, this norm includes flexibility through package deals where small landowners can club their land parcels to reach the two-acre threshold.

Employment Preference Structure: Priority is given in the following order:

1. Landowner himself

2. Son or son's son of the landowner

3. In case of female landowners, their husband

4. If no son exists, daughter's son or son-in-law

5. In case of inherited land, brother (who must also be a landowner)
   

Gender Considerations: While preference is given to eligible male family members due to the nature of the mining industry, female members are considered when no eligible male member exists in the family.

Alternative Compensation Mechanisms

Recognizing that dependence on mine jobs can create challenges, CIL's 2012 policy introduced monetary compensation in lieu of employment to reduce this dependency. The policy offers:

• Increased compensation from Rs. 2 lakh to Rs. 5 lakh per acre in lieu of employment

• Additional monetary compensation for those who forego claims on mine jobs

• Annuity payment options with flexible terms decided by subsidiary companies

NTPC's Comprehensive Approach

Policy Evolution and Framework

The National Thermal Power Corporation (NTPC) has been a pioneer in formulating comprehensive R&R policies, with its first policy dating back to 1980. The corporation has continuously evolved its approach, with significant policies in 1993, 2005, and 2010.

NTPC's R&R Policy 2010 acknowledges that NTPC projects are capital intensive with state-of-the-art technology and therefore do not offer much direct job opportunity, particularly in unskilled categories. However, the policy emphasizes significant downstream employment opportunities arising from NTPC project establishment.

Employment Strategy and Implementation

NTPC's approach to employment under R&R includes:

1. Direct Employment: Limited due to the capital-intensive nature of power projects

2. Downstream Employment: Significant opportunities through project-related economic activities

3. Economic Opportunities: Including shop allotment, self-employment options, petty contracts, and jobs with contracting agencies

4. Skill Development: Training programs to enhance employability of PAFs
   

National and State-Level Employment Guarantee Programs

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

While not specifically an R&R policy, MGNREGA provides crucial employment support that complements R&R employment provisions. The scheme guarantees 100 days of unskilled manual work per rural household annually, providing a safety net for displaced families during transition periods.

Key features include:

• Rights-based legal guarantee for rural employment

• Minimum wage protection for all work provided

• Asset-creating public works that enhance rural infrastructure

• Time-bound guarantee: 15 days to allocate employment, 15 days to make payments
  

Integration with R&R Policies

MGNREGA complements R&R employment provisions by:

• Providing immediate employment opportunities during displacement transition

• Offering skills development through infrastructure projects

• Supporting vulnerable groups including women and marginalized communities

• Creating assets that benefit the broader community

Challenges and Implementation Issues

Systemic Challenges

Despite comprehensive policy frameworks, several challenges persist in implementing employment provisions under R&R policies:

Administrative Capacity: Limited implementation capacity at ground level often delays employment provision. The complexity of determining eligibility and coordinating between multiple agencies creates bottlenecks.

Skills Mismatch: Modern industrial projects require skilled workers, while many PAFs lack requisite technical skills. This creates a gap between available opportunities and PAF capabilities.

Geographic Constraints: Land acquisition for linear projects (railways, highways, transmission lines) often affects families across vast distances, making centralized employment provision challenging.

Specific Implementation Challenges

Coal Industry Challenges: As noted in research on coal worker rehabilitation, 7.25 lakh direct coal jobs and numerous indirect jobs face transition challenges as the industry evolves. The study identifies the need for adequate emphasis on skill-based re-employment plans to generate suitable alternate livelihoods.

Gender and Vulnerability Issues: Despite policy provisions, women and vulnerable groups often face additional barriers in accessing employment opportunities. Traditional gender roles and limited mobility can restrict access to training and employment programs.

International Best Practices and Standards

World Bank Standards

International financial institutions have developed comprehensive guidelines for employment under resettlement policies. The

IFC Handbook for Land Acquisition and Involuntary Resettlement emphasizes:

• Livelihood restoration as a key objective beyond simple compensation

• Participation of affected communities in planning and implementation

• Monitoring and adaptive management to ensure successful outcomes

• Gender-inclusive approaches to employment and training programs

Implementation Principles

Best practice frameworks emphasize:

1. Early engagement with affected communities to understand livelihood patterns

2. Comprehensive baseline studies to establish pre-project employment and income levels

3. Tailored intervention strategies based on specific community needs and skills

4. Long-term monitoring to ensure sustainable livelihood restoration

Future Directions and Recommendations

Policy Enhancement

To improve employment outcomes under R&R policies, several enhancements are recommended:

Skill Development Focus: Greater emphasis on comprehensive skill development programs that align with market demands and emerging economic opportunities.

Public-Private Partnerships: Enhanced collaboration between government agencies and private sector employers to create sustainable employment opportunities beyond traditional project-based jobs.

Technology Integration: Leveraging technology platforms for job matching, skills assessment, and training delivery to improve efficiency and reach.

Institutional Strengthening

Coordination Mechanisms: Establishing stronger coordination between various agencies implementing different aspects of R&R policies to ensure seamless service delivery.

Monitoring Systems: Developing robust monitoring and evaluation systems to track employment outcomes and make necessary policy adjustments.

Community Participation: Strengthening mechanisms for meaningful community participation in planning and implementing employment programs under R&R policies.

Conclusion

Employment under R&R policy represents a critical component of ensuring that development projects contribute to inclusive growth rather than creating long-term displacement and poverty. The evolution from simple cash compensation to comprehensive livelihood restoration frameworks reflects a growing understanding of the complex challenges faced by project-affected communities.

The success of employment provisions under R&R policies depends on several factors: comprehensive policy frameworks that address diverse livelihood needs, effective implementation mechanisms with adequate administrative capacity, strong coordination between different agencies and programs, and continuous monitoring and adaptation based on ground-level experiences.

As India continues its rapid development trajectory, the importance of effective R&R employment policies will only grow. The challenge lies in translating well-intentioned policy frameworks into tangible employment opportunities that enable affected families to rebuild their lives with dignity and improved prospects. The integration of traditional R&R approaches with broader employment guarantee programs like MGNREGA, combined with enhanced focus on skill development and market-oriented training, offers a promising path forward for ensuring that no one is left behind in India's development journey.

The experiences of organizations like CIL and NTPC demonstrate that with commitment, innovation, and community engagement, it is possible to transform the challenges of displacement into opportunities for enhanced livelihoods and community development. However, this requires sustained effort, adequate resources, and continuous learning from both successes and failures in implementation.