The Importance of Including ‘Formal’ Employment Generation in the Definition of ‘Public Purpose’ under the RFCTLARR 2013

Abstract

Generation of employment is one of the most common justifications for land acquisition. As such, the ‘Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement, 2013’ (RFCTLARR) does not include employment generation in its definition of ‘public purpose’. Section 2(b) (ii) to (vi) RFCTLARR, however, directly or indirectly infers employment generation per se. This article elaborates concerns and challenges regarding ‘formal’ employment generation through examination of employment generation in the various sectors, but notably in manufacturing and urbanisation, the proven messiahs of poverty removal through employment generation. It shows India’s historically skewed pattern of growth and internal contradictions regarding employment through various documents of Planning Commission, The World Bank and of other observers. What comes across clearly is that unless the manufacturing, urbanisation and land acquisition policies complement and support each other, generation of ‘formal’ employment will remain mere wishful thinking. With this approach the article argues that it is time to take ‘formal’ employment generation out of the boot of the land acquisition Special Purpose Vehicle and place it strategically behind the steering wheel.