Abstract
The rebuilding of livelihoods in the involuntary resettlement is commonly based on providing compensation to those who are displaced along with the creation of employment and income opportunities to sustain their livelihoods. Unlike rural resettlement, urban resettlement is very complex as it involves providing business opportunities, urban-based employment and income. The article examined the resettlement of displaced families affected by Tehri Hydro Power Project by constructing an entirely new town ‘New Tehri Town’ (NTT) by using impoverishment risks and reconstruction (IRR) framework developed by Cernea (1997, World Development, 25(10), 1569–1587). The result shows that project-affected families (PAFs) are better off in NTT in terms of community amenities, income and employment opportunities and in terms of increase in value of houses, but traditional employment opportunities have been lost, they have to search for new jobs and livelihoods. The R&R policies in urban areas should focus on improving skill sets of the people along with increased income and employment opportunities through the development of market and business opportunities.
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