RESETTLEMENT POLICY FRAMEWORK

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized RESETTLEMENT POLICY FRAMEWORK ORISSA COMMUNITY TANK MANAGEMENT PROJECT Prepared by Verve Consulting For OCTDMS Department of Water Resources, Government of Orissa Dated the 7 th of December 2007 RP614

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ACRONYMS DPU District Project Unit DLIC District Level Implementation Committee GoO Government of Orissa GoI Government of India HYV High Yielding Variety IGA Income Generating Activity IB Institution Building LA Land Acquisition LAO Land Acquisition Officer LSA Livelihood Support Assistance MI Minor Irrigation M.I.P Minor Irrigation Project M & E Monitoring & Evaluation M, E &L Monitoring, Evaluation & Learning NTFP Non-Timber Forest Produce OCTMP Orissa Community Tank Management Project PESA Panchayat Extension to Scheduled Areas PAFs Project Affected Families PAP Project Affected Person PP Pani Panchayat R & R Resettlement & Rehabilitation RMF Rehabilitation Management Framework RI Revenue Inspector SHG Self Help Groups SO/SA Support Organisation/Agency SC/ST Scheduled Caste/Tribe SPU State Project Unit WB World Bank DoWR Department of Water Resources 3

RESETTLEMENT POLICY FRAMEWORK TABLE OF CONTENTS I INTRODUCTION... 5 II DIAGNOSTIC ANALYSIS... 7 ENCROACHMENT... 8 LAND ACQUISITION... 10 III MAJOR LAND ISSUES- A HISTORICAL PERSPECTIVE... 10 IV RESETTLEMENT POLICY FRAMEWORK (RPF)... 12 ENTITLEMENT FOR PROJECT AFFECTED FAMILIES MATRIX... 15 LEGAL FRAMEWORK... 20 REDRESSAL OF GRIEVANCES... 21 CONSULTATION... 22 V INSTITUTIONAL & IMPLEMENTATION ARRANGEMENT... 23 INSTITUTIONAL ARRANGEMENTS... 23 PHASING OF THE ACTIVITIES... 27 INTEGRATING SOCIAL / RESETTLEMENT ISSUES INTO THE OVERALL PROJECT CYCLE... 29 VI INTEGRATION OF IMPLEMENTATION ARRANGEMENT WITH PROJECT CYCLE... 30 VII INDICATIVE BUDGET... 33 VIII LAND ACQUISITION IN SCHEDULED AREAS... 35 IX MONITORING AND EVALUATION... 35 Tables Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 : Extent of encroachment in 25 sample tank beds : Average Land Encroached per Encroacher : Actual distribution of encroachers by size of class of existing land holding in sample tanks : Entitlement for Project Affected Families : Grievance Redressal Mechanism : Key Players : Implementtion Arrangements for Land related issues : Phasing of Land related activities : Tank Renovation Process Map : Indicative Budget for Encroachers : Indicative Budget for Land Acquisition : Indicative Budget for managing land related issues : Levels of Monitoring : Mid-term evaluation plan : End- term evaluation plan Annexures Annexure I Annexure II Annexure III : Socio-Economic Profile of Encroachers and RAP Entitlement Matrix : Compensation Calculation Sheet : Land Related Policies and Acts 4

RESETTLEMENT POLICY FRAMEWORK I Introduction 1. The Government of Orissa (GoO) with Government of India (GoI) has initiated the Orissa Community Tank Management (OCTM) Project with funding from the World Bank. The project plans to renovate 900 tanks covering a total command area of about 1.2 lakh hectares across seven river basins of Orissa. These tanks have a designed capacity of irrigating agricultural land ranging from 40 to 2000 hectares. OCTM Project Objective & Components 2. The OCTM project aims to improve the tank based livelihood systems and strengthen community management of selected tank systems in Orissa. The basic design principles of this project includes a sub-basin / watershed approach to tank selection and renovation that incorporates analysis of hydrological feasibility; user demand and participation in design and implementation of the project; sharing of the cost of tank system improvement by users; and operation & maintenance by tanks users; enabling systems, policies and legislations to support the project interventions; and provision of improved agricultural technologies, credit and marketing support services for promotion of tank based livelihoods. Identification of Tanks 3. The total number of tanks which have been initially identified for repair and renovation under the World Bank supported project are 1572, spread across 29 Districts, and 237 Blocks of Orissa. Out of these 1572 tanks, 900 tanks will be identified for renovation under the OCTM Project. These tanks have been identified on the basis of the following criteria: Tanks in which major repairs /renovation have been taken up during the last five years under any scheme of GoI or GoO have been excluded. Tanks where the gap ayacut i.e. difference between the designed ayacut and the actual ayacut is less than 20% have not been included. Tanks where actual ayacut is more than the designed ayacut have also been excluded. Completely derelict tanks have been excluded except the smaller ones (40 ha to 100 ha ayacut) which can be renovated within the World Bank cost norms. 4. However, these 1572 tanks are not the final list of tanks which will be considered for renovation under the project. This identification covers a preliminary step in the entire selection process. The actual selection will be subject to further deliberations and tank specific hydrological assessment reports. Community endorsement will also play a key role in the final tank selection as a share of the project cost will be contributed by the community. 5. In light of the above project requirements, a social assessment study was conducted under the OCTM project in alignment with the GoO, GoI and the World Bank safeguard requirements, policies, regulations and guidelines. A combination of cross-sectional survey design and descriptive case-study method was adopted for undertaking the social assessment 5

study. A sample of 25 tanks spread across 10 agro climatic zones, 21 districts, 26 blocks, 34 gram panchayats and 59 villages was surveyed and consultations were carried out with all categories of key informants at the community, panchayat, block, sub-division, district and state level. 6. The Social Assessment Study1 has revealed the requirement of land for the OCTM project implementation. Considering the importance of land related issues in the project an independent chapter has been dedicated to various land related issues like acquisition and encroachment. Exclusive field visits were made to 4 tanks (outside the 25 sample tanks) by the study team to study the land related issues in greater detail. Secondary and historical data available with the MI department has also been reviewed for drawing conclusions. Major Renovation Activities Planned 7. The renovation measures under the OCTM Project are limited to stabilization of ayacut2 and regaining of lost ayacut. Renovation works will be carried out in four broad areas of the tank system Headwork s, Tank Bed, Command and Catchment. Major renovation works include renovation of Headwork s, Cross Drainage Structures, Proportional Division Structures, Drop Structures, On Farm development, Canal Flow Measuring Devices, and other miscellaneous structures like village road crossing etc. Most of these structures are in existence but in a dilapidated condition. Land Requirement for the Renovation Works 8. Since only treatment and no additional structures have been planned in the catchment, there will be no land requirement for the renovation works in the catchment area. A case of encroachment in the catchment area has been found in the 25 sample tanks. Considering this finding, encroachment in the catchment area might exist in some of the tanks but will minimally affect the project implementation. 9. The project has no interventions planned to increase the water holding capacity (planned) of the reservoir; so land acquisition will not be required for the Tank Bed. However there might be some encroachment of existing land in the reservoir area. 10. Most of structures in the Headwork s are in existence but in a dilapidated condition hence no additional land will be required for its renovation. Also the existing distributary system is completely or partially derelict and non-existing in some of the tank systems. Land will have to be acquired for tank systems where distributary systems are non-existent or not correctly aligned. Encroachment issues on silted canal systems will also be an issue to be taken into consideration in the project design. 11. So we can conclude that since the project will cover only existing tanks, new land acquisition is expected to be minimal and physical displacement will be non-existent. Since most of the structures proposed to be renovated are in existence but in a dilapidated condition there would be minimal land requirement for their renovation. 1 Government of Orissa had sponsored a Comprehensive Social Assessment study, conducted by an external consulting agency, Verve Consulting Private Limited, Bhubaneswar. 2 Ayacut is the area irrigated by an Irrigation Project. 6

12. To get a clearer picture and better understanding of the issues and plan mitigation measures a detailed analysis has been presented in the sections given below. The Chapter can be divided into the following sections: Section2 deals with a diagnostic analysis of the various issues related to land based on the primary data collected from the field for existing M.I Projects. Ground realities related to encroachment have been dealt in detail in this section. An analysis of Land Acquisition requirements has also been provided from an engineering perspective. Section 3 documents an analysis of major issues being faced in Land Acquisition for new Minor Irrigation (M.I) projects by the M.I department. The section has used data from all M.I projects commissioned during the last 5 years. Section 4 suggests a Rehabilitation Management Framework (RMF) which can be applied to all tanks as and when they are selected. The major components of the RMF consists of an exclusion clause, categories of project affected families eligible for renovation benefits, an Entitlement matrix, the legal framework, and protocol for valuing assets. A mechanism for redressal of grievances and a mechanism for conducting consultations have also been provided in this section. Section 5 covers the various actors involved in land related issues and their roles, a process map for dealing with land related issues and an institutional arrangement for implementation of land related activities. Section 6 integrates the implementation arrangements with the OCTM Project cycle. Section 7 provides estimated cost of dealing with land related issues. Assumptions related to incidence of encroachment and Land acquisition has also been provided in the Section. Section 8 deals specifically with Land Acquisition in Scheduled Areas. Provisions of the Orissa Scheduled Areas Transfer of Immovable Property, 1956 and Panchayat Extension to Scheduled Areas (PESA) Act, 1996 have also been elaborated in the section. Section 9 elaborates the monitoring and evaluation plan for land related issues II Diagnostic Analysis 13. The selection of tanks for renovation under the OCTM project is incomplete as of now. The list of identified tanks will be further refined once ground/micro level issues come to the surface. New issues will also crop up with the involvement of community. The complete picture will evolve only after all these issues are looked at in their totality. 14. The following land related issues have emerged after looking at the project requirements Encroachment - tank bed, catchment and distributary system 7

Land Acquisition - aligning distributary systems & non-existent distributary system Each of these issues has been dealt separately in the sections given below: Encroachment 15. Unauthorized occupation of government land is called encroachment. A number of existing MI projects are under the threat of encroachment varying in their intensity. Encroachment has been observed in the tank system at three points the tank bed, the catchment and on the silted distributary system. 16. The problem of Encroachment does not apply for Headwork s. 17. One instance of encroachment in catchment area has also been found in one of the sample tanks visited by the social assessment team. However the incidence of catchment area encroachment is very low (only one case in 25 sample tanks). 18. Encroachment in the tank bed is easier to track in comparison to encroachment in the distributary system owing to the vast geographical spread of the distributary system. Also Encroachment is both seasonal and permanent in the tank bed and distributary system. The pattern of encroachment also varies from one place to other. For example in the Mayurbhanja district most of encroachers have encroached land adjacent to their own land. In some of the southern districts, the encroachment is mostly seasonal and is not reported and reflected in the revenue records. 19. At a more micro level, the sample study of 25 sample tanks under the social assessment study has come up with encroachment in 7 tank beds, 1 tank distributary system and 1 tank catchment area. Details of encroachment found through the sample study have been provided in the tables and case studies given below: Encroachment in the distributary system 20. In Daungia M.I.P of K.Nuagaon block, Kandhamal district, a village road has been constructed over a section of the main canal which is completely derelict. The tank system has been completely dysfunctional since the year 1995. Encroachment in the catchment area 21. In Jagata M.I.P of Beguniapada block, Ganjam, some encroachment was observed in the catchment area by a local person who has built a farmhouse in the encroached land. In case the water level in the tank goes beyond a certain level there is the risk of his farmhouse being submerged. Encroachment in the tank bed 22. Table 1 lists the tanks in which encroachment has been found in the tank bed. 28 % of the sample tanks (7 out of 25) have problems related to encroachment. The average number of encroachers in a tank is 7 whereas the maximum number of encroachers in the sample is 8

10. An approximate 23 % (4.47 acres of 19 acres) of the tank bed has been encroached in the 7 sample tanks. Table 1 Extent of encroachment in 25 sample tank beds Sl. No Name of the M.I.P District Tank Bed Area ( in acres) No. of Encroachers Total Area Encroached ( in acre) % of Encroached Tank Bed 1) Daungia Kandhamala 20 5 2 10% 2) Baghirijhola Rayagada 14 5 5 35.7% 3) Pollinaidu Gajapati 40 7 10 25% 4) Silati Nawarangapur 40 10 10 25% 5) S.N Pur Goda Keonjhar 2 2 0.5 25% 6) Petupali Bargarh 8 4 1 12.5% 7) Kabatakhajuri Jajpur 10 13 2.79 28% Average 7 23% 23. A detailed study on encroachment was conducted in two sample tanks of Daungia, K.Nuagaon block, Kandhamal and Kabata Khajuri, Sukinda block, Jajpur. Detailed census survey and consultations were held with 19 encroacher households. Findings have been presented from the detailed study in a tabular form in annexure 2. The average land encroached in the case of Daungia M.I.P was 0.8 acres and in case of Kabata Khajuri was 0.6 acres. The average land encroached in both the samples together comes to 0.67 acres. Table 2 Average Land Encroached per Encroacher Sl.No M.I.P Average Land Encroached (in acres)/encroacher 1) Daungia M.I.P, Kandhamal 0.80 2) Kabata Khajuri, Jajpur 0.60 Average Land Encroached/Encroacher 0.67 24. The study shows that majority of the encroachers (63%) belong to the Marginal farmers category and possess some land other than the encroached land. The next dominant category belongs to the Landless Farmers. Detailed household profile of the 19 Encroacher families has been provided vide Annexure I. Table 3 Actual distribution of encroachers by size of class of existing land holding in sample tanks Category Land Holding (in acres) Number of Encroachers Percentage of Total Encroachers (%) Landless NA 5 26 Marginal 0-2.5 12 63 Small 2.5-5 0 0 Medium 5-10 2 11 Large More than 10 0 0 Total 19 100 25. Taking the conclusions derived from the field findings we can derive the following assumptions for the 900 sample tanks About 30% of the tanks will have issues related to encroachment 9

Average number of encroachers per tank will vary from 7-10 (this number can go up to 20 in some isolated cases). The average land encroached per encroacher will vary in between 0.6-1 acre ( this estimate can go up to 2 acres incase of large tanks) Of the total encroachers, approximately 80% will belong to the marginal and landless category whereas the balance 20 % will belong to the other farmer s category. Land Acquisition 26. Land Acquisition will not be required in case of headworks and tank bed as they are existing structures. Land Acquisition will also not be required for the treatment of the catchment. However Land Acquisition will be required in the case of non-existent and aligning existing distributary systems. 27. Some distributary systems have not been aligned correctly from an engineering perspective. Likewise, some canals after the first few hundred meters follow the gradient of the land. Thus, canal alignment will have to be done in about 15-20% of the cases. Small pieces of land will have to be acquired on either sides of the canal for this purpose. 28. As per the figures provided by the MI department approximately 600-700 tanks out of the 900 tanks selected for renovation under this project have an ayacut of less than 40-100 hectares. Due to this small ayacut area 2 main canals can easily irrigate the designed ayacut. Also owing to the smaller geographical spread and proximity of the fields to the tank, only field channels will be required for the distributary system. 29. Field channels will have brick lining on one side of the channel and other side will be constituted by the bund of the adjoining field. These channels will require around 1-1.5 feet of land. Since the water will go to the farmers own fields, they might agree to give consent for voluntary surrender of land. Conflict might arise incase some farmers might not be able to get the benefit from the channel owing to the topography (height at which the field is situated) of their fields. Conflicts may also arise incase of water logging of low lying land adjacent to the field channels. 30. Each hectare of irrigated land in the command requires 0.45 hectares of land for the distributary system. Distributary systems are non-existent mostly in the case of tanks with a command area of 40-200 hectares. Tanks having no distributary system have been ruled out at this stage of selection. III Major Land Issues- a Historical Perspective 31. This earlier section on diagnostic analysis dealt with findings from the field study conducted in existing tanks based on a sample of 25 tanks. In order to relate these findings to secondary data, we have taken past records available with the M.I department to draw certain conclusions. However this data relates to new projects. 10

32. The MI department has undertaken 123 new irrigation projects in the last 5 years. Of the 123 new projects LA for Headwork s has been completed for 37 projects. Land Acquisition for distributary system has been completed for 25 projects only. 33. Majority of the projects are completed in a time span extending over 3 years. LA for Headwork s for 15 new projects was completed in more than three years, for 14 projects in between 2 to 3 years and only one project in less than one year. LA for the Distributary system for 9 projects was completed in more than 3 years and in between 2 to 3 years each. 34. As per the past five years data, an average area of 39 acres is required for the Head Works of a standard M.I.P project and usually affects 27 farmers who loose their land owing to the project. Incase of distributary systems, the land required is less at 27.36 hectares but the number of farmers affected is considerably higher at 89. Compensation has been paid for all the cases in which LA has been completed as per official records 35. Along with a quantitative analysis of the data available with the MI department, field visits were also done to two recently completed MI projects to look at various qualitative issues prevailing in Land Acquisition for MI projects. Kiakhala M.I.P, Rasagobindapur Block and Sankaramara M.I.P, Sankaramara in Mayurbhanaj district were visited by the Social Assessment team. Some of the issues existing on ground have been narrated below: Delay in disbursement of compensation: Even though the MI Project has been completed and has been functional, some people have not yet received the compensation. Gram Sabha Consultation: Even though both the M.I.Ps falls under the Scheduled area, no Gram Sabha consultation was conducted in Kiakhala as per the villagers. The Gram Sabha consultation in Sankaramara M.I.P was disrupted owing to opposition from the people. Inadequate amount of compensation: As per the villagers of the Kiakhala M.I.P, the LA process took 14 years (1992-2006); hence they should be compensated for the value of crops they could have grown for this period. As per government norms they are entitled to a certain rate of interest for the delay in the LA process and disbursement of compensation. Alternative Livelihood Support: Some families in both the MI projects had lost more than 70 % of their land holding as a result of which they are unable to derive sufficient income from agriculture for sustenance. Some of the families have started collecting sal leaves from the nearby forests for making leaf plates. Compensation to Encroachers: In Sankaramara MI project 7-8 encroacher families have been cultivating government land. They had also been paying penalty to the RI for the same. Similar is the case in a nearby village where 8-10 villagers were cultivating government land. However none of them were paid any compensation. 36. In order to address the issues raised in subsequent sections, a Resettlement Policy Framework has been developed in subsequent sections, which can be applied as and when a tank gets selected. 11

IV Resettlement Policy Framework (RPF) Need for a RPF 37. A Resettlement Policy Framework is being suggested at this stage of the Project since the list of 900 tanks has not yet been finalized. The actual selection will be subject to further deliberations and tank specific hydrological assessment reports. Community endorsement will also play a key role in the final tank selection as a share of the project cost will be contributed by the community. Since the selection of tanks is not yet complete, we have to look at a generic framework instead of a tank specific rehabilitation action plan. 38. Also the OCTM project recognizes the existence of physical, hydrological, social, economic and cultural diversity across tank systems in Orissa. The tank users in Orissa comprise of various sub-groups having differential endowment, livelihood pattern, gender, caste, ethnicity and other regional features. Most importantly, each sub-group has different nature of interests, expectations, concerns and influence as far as tank systems are concerned. The project also comprehends that the problems encountered by a sub group and their needs will be unique in comparison to other sub-groups. 39. The number of issues related to land which the project might face will also be equally diverse. Amidst this diversity of issues and nature of tanks it will be difficult to take an individualistic approach to resolving issues for each of the 900 sample tanks. Also the time required for a tank based assessment will take a lot of time which will seriously affect the project cycle. Hence a generic framework has to be developed for addressing this diversity of issues on a common platform. Apart from this, it is crucial to come out with a framework for participation of various sub groups in planning, implementation and monitoring & supervision of tank based livelihood improvement and tank system management so that the ultimate receivers of tank benefits own the whole process and reap sustainable benefits from tank system. Rehabilitation Policy Framework 40. Following the above results, and in accordance with the World Bank s Safeguard Policy on Involuntary resettlement (OP 4.12) a RPF has been prepared. The Rehabilitation policy framework comprises of: (i) Categories of PAFs (iii) Entitlement Matrix (iv) Legal Framework (v) Methods for valuing affected assets (vi) Grievance Redressal (vii) Consultation 41. The framework has been developed based on the following policies/ legislations Orissa Resettlement and Rehabilitation Policy 2006 (with amendments dated 4 th June, 2007) The Land Acquisition Act 1894 The Orissa Prevention of Land Encroachment Act, 1972 The Orissa Scheduled Areas Transfer of Immovable Property, 1956 Panchayat Extension to Scheduled Areas ( PESA) Act, 1996 12

This framework will act as guide for tackling land related issues in the 900 selected tank systems. Project Affected Families - Categories 42. CUT-Off Point for PAF Identification. Socioeconomic survey of the affected families done during the planning phase will serve as the cut-off point. 43. Taking into the account all the issues narrated in previous sections, a number of families might be affected by the project activities. All the families will be extended compesantion and rehabilitation/ livelihood assistance. For the purpose of convenience in determining the nature and extent of compensation and rehabilitation assistance, the Project Affected Families (PAF) are grouped under the following categories: 1. Encroacher belonging to the Scheduled Tribes i. Landless Encroacher encroachment more than 10 years ii. Landless Encroacher encroachment less than 10 years iii. Marginal Farmers encroachment more than 10 years iv. Marginal Farmers encroachment less than 10 years v. Small Farmers Encroachment more than 10 years vi. Small Farmers Encroachment less than 10 years vii. Other Farmers 2. Encroacher belonging to the Other Castes/Categories i. Landless Encroacher encroachment more than 10 years ii. Landless Encroacher encroachment less than 10 years iii. Marginal Farmers encroachment more than 10 years iv. Marginal Farmers encroachment less than 10 years v. Small Farmers Encroachment more than 10 years vi. Small Farmers Encroachment less than 10 years vii. Other Farmers 3. Land Owners with Title Deed belonging to Scheduled Tribes i. Marginal Farmers ii. Other Farmers 4. Land Owners with Title Deed belonging to Other Castes/Categories i. Marginal Farmers ii. Other Farmers Approach 44. A detailed socio-economic survey will be conducted and extensive consultations will be held with the project affected families, i.e. the land loosers. Each target community will be identified and differentiated on the basis of their source and level of income. The survey will focus on land and various productive assets including wages. This information will be used to determine the nature and extent of livelihood support/assistance (over and above the provisions made for compensation) required to restore adequate income levels. All these measures will be taken only after consulting the affected families and wider community. This approach will help the OCTM project in achieving its objective of ensuring that no affected household becomes poorer with the intervention. 13

45. Encroachment: One of the key issues that requires deliberation is the issue of encroachment. OCTMP s RPF has been developed premised on the following Orissa Policies (pp 11; paragraph 41 of RFP). Orissa Resettlement and Rehabilitation Policy 2006 (with amendments dated 4th June, 2007) The Orissa Prevention of Land Encroachment Act, 1972 Orissa Prevention of Land Encroachment Rules, 1985. The Land Acquisition Act 1894 Orissa Resettlement and Rehabilitation Policy of June 4, 2007 (latest) provides for making available lands even for an encroacher. This is probably only one of its kinds in India. No state, so far, has ever made a provision for lands for encroachers. But this provision is made only for such encroachers who are in possession of lands for 10 years and above. Against this context, the project has envisaged two categories of encroachers one, 10 years and above and those less than 10 years. According to the Orissa Prevention of Land Encroachment Rules, 1985 an "encroacher" means a person who unauthorisedly- (i) Occupies any land (ii) Obstructs by dumping earth or any other materials, rubbish or filth on it; or (iii) Puts any fence around it; or (iv) Takes up any construction or cultivation on it; OCTM project will follow the following process for the identification of encroachers. Process Agency responsible Tools/Procedures Preliminary estimation of the extent of encroachment, identity of encroacher Pani Panchayat (Water Users Association) and Support Agency (NGO) Transect walk and discussion Preliminary estimation of the cut-off date of encroachment Official verification of the record PP and SA will report the survey findings in the Gram Sabha Revenue Inspector Date of encroachment as established through transect walk, discussion shall be the end date for computation Revenue Inspector will decide based on the Revenue Records which are built using the specified form (Form G) and filled in each year and sent for compilation within 15 days of the close of each financial year. These forms are compiled and stored at the office of the Tehsildar. These registers will form the basis for determining the ten year stay-put. This will be checked against start date and end date as established during transect (chronological data) and number of years of encroachment will be estimated. RI will prepare and submit the report to the DPU and Sub-Collector s office. After checking/ verification, the records will be shared for discussion with WUA and Gram Sabha. Should there be any discrepancies, or disagreements, this will be referred to the ROG at the Office of the Sub-Collector. Preliminary settlement Revenue Inspector and District Project Unit After the reports are finalized, then the district unit shall settle the compensation as per the entitlement matrix. 14

Livelihood assistance of Rs. 25000 is arrived at based on the norms developed for the Government of India s Anti Poverty Program- SGSY (Swarna Jayanti Gram Swarojgar Yojana). The financial help will provide for creation of income generating assets enabling micro enterprises such as crops, sericulture, animal husbandry, dairy, fisheries, poultry, goatery, piggery, handicrafts or secondary food processing e.g. preparation of puffed rice, flattened rice, pickles, etc. While the choice of an activity will rest with the concerned affected person, investments will be such as to ensure, in the least, the restoration of pre-acquisition incomes, and on the outer side a minimum of Rs 25,000 per annum, coinciding with the above poverty line. Thus, it will be ensured that no affected person shall be poorer. Entitlement for Project Affected Families Matrix 46. The Entitlement Matrix has been developed for the above categories of families. This Matrix can be used as a guide for designing Rehabilitation Action Plans for individual tanks. As stated earlier, all the families are entitled to two broad categories of assistance- (1), compensation for land loss and livelihood assistance; and (2) livelihood (rehabilitation) assistance for starting some income generation activity, which may include the purchase of lands, as decided by the PAF. The livelihood assistance in the matrix are rather indicative (as they are average figures), whereas, the actual assistance will relate to, at the minimum restoring, if not enhancing the pre-land loss income levels. It may also be noted that livelihood assistance figures have been worked out such as to yield an annual income of Rs 24,000 per family, an income level corresponding to the initial ladder of the Above Poverty Line. 15

Table 4 Entitlement for Project Affected Families Sl.No Category Project Affected Family Compensation Rehabilitation Entitlement Livelihood Assistance Landless encroachment more than 10 years Up to a maximum of one acre of land In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. 1 Encroacher (ST) 2 Encroacher (Others) Marginal Farmers encroachment more than 10 years Up to a maximum of one acre of land In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. Incase Displaced - Maintenance Allowance @ Rs.2,000/- per month per displaced family for a period of one year from the date of vacation. An assistance of Rs.10,000/- shall be provided to each displaced family for construction of a temporary shed. Transportation allowance of Rs.2,000/- or free transportation to the resettlement habitat or their new place of inhabitance, shall be provided to each displaced family Landless encroachment less than 10 years - - Marginal Farmers encroachment less than 10 years Small Farmers encroachment more than 10 years Small Farmers encroachment less than 10 years Landless encroachment more than 10 years - - - - - - Up to a maximum of one acre of land In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration Incase Displaced - Maintenance Allowance @ Rs.2,000/- per month per displaced family for a period of one year from the date of vacation. An assistance of Rs.10,000/- shall be provided to each displaced family Income Generating Activity (IGA) Support - Rs. 25,000 per family Income Generating Activity (IGA) Support - Rs. 25,000 per family Income Generating Activity (IGA) Support- Rs. 25,000 per family Income Generating Activity (IGA) Support- Rs. 25,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family Income Generating Activity (IGA) Support- Rs. 25,000 per family 16

Sl.No Category Project Affected Family Compensation Rehabilitation Entitlement Livelihood Assistance for construction of a temporary Up to a maximum of one acre of land shed. In case of non-availability of land, cash Transportation allowance of Marginal Farmers equivalent will be provided up to a maximum of Income Generating Activity Rs.2,000/- or free transportation to encroachment more than Rs. 1,00,000/- per acre of irrigated land and (IGA) Support- Rs. 25,000 per the resettlement habitat or their new 10 years Rs.50,000/- per acre of non-irrigated land, family place of inhabitance, shall be including the cost of reclamation and provided to each displaced family registration. 3 Only Homestead Land along with House Landless encroachment less than 10 years - Marginal Farmers encroachment less than 10 years Small Farmers encroachment more than 10 years Small Farmers encroachment less than 10 years - - - - - - - - - 0.10 acre or cash equivalent @ Rs. 50,000 for each displaced family opting for self-relocation elsewhere A House Building Assistance of Rs. 1,50,000/- to each displaced family, which includes cattle shed. Incase Displaced - Maintenance Allowance @ Rs.2,000/- per month per displaced family for a period of one year from the date of vacation. An assistance of Rs.10,000/- shall be provided to each displaced family for construction of a temporary shed. Transportation allowance of Rs.2,000/- or free transportation to the resettlement habitat or their new place of inhabitance, shall be provided to each displaced family Income Generating Activity (IGA) Support- Rs. 25,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family Income Generating Activity (IGA) Support- Rs. 15,000 per family 4 Land Owners with title deed (Scheduled Tribes) Loss of Agricultural Land which is more than 75% of the total land holding Up to a maximum of Two-and-a-half acres of irrigated agricultural land or five acres of nonirrigated agricultural land. In case of non-availability of land, cash equivalent will be provided up to a maximum of 17 Incase Displaced - Maintenance Allowance @ Rs.2,000/- per month per displaced family for a period of one year from the date of vacation. An assistance of Rs.10,000/- shall Income Generating Activity (IGA) Support- Rs. 25,000 per family

Sl.No Category Project Affected Family Compensation Rehabilitation Entitlement Livelihood Assistance Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. Loss of Agricultural Land which is less than 75% of the total land holding Incase Displaced- @ 0.10 acre or cash equivalent @ Rs. 50,000 for each displaced family opting for selfrelocation elsewhere A House Building Assistance of Rs. 1,50,000/- to each displaced family, which includes cattle shed. Up to a maximum of Two-and-a-half acres of irrigated agricultural land or five acres of nonirrigated agricultural land. In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. be provided to each displaced family for construction of a temporary shed. Transportation allowance of Rs.2,000/- or free transportation to the resettlement habitat or their new place of inhabitance, shall be provided to each displaced family Income Generating Activity (IGA) Support- Rs. 15,000 per family Incase Displaced- @ 0.10 acre or cash equivalent @ Rs. 50,000 for each displaced family opting for selfrelocation elsewhere 5 Land Owners with title deed (Others) Loss of Agricultural Land which is more than 75% of the total land holding Up to a maximum of Two acres of irrigated agricultural land or four acres of non-irrigated agricultural land. In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. Incase Displaced - Maintenance Allowance @ Rs.2,000/- per month per displaced family for a period of one year from the date of vacation. An assistance of Rs.10,000/- shall be provided to each displaced family for construction of a temporary shed. Transportation allowance of Rs.2,000/- or free transportation to the resettlement habitat or their new place of inhabitance, shall be Income Generating Activity (IGA) Support- Rs. 25,000 per family Incase Displaced- 18 @ 0.10 acre or cash equivalent @ Rs. 50,000 for each displaced family opting for self-

Sl.No Category Project Affected Family Compensation Rehabilitation Entitlement Livelihood Assistance relocation elsewhere A House Building Assistance of Rs. 1,50,000/- to each displaced family, which includes cattle shed. Loss of Agricultural Land which is less than 75% of the total land holding Up to a maximum of Two acres of irrigated agricultural land or four acres of non-irrigated agricultural land. In case of non-availability of land, cash equivalent will be provided up to a maximum of Rs. 1,00,000/- per acre of irrigated land and Rs.50,000/- per acre of non-irrigated land, including the cost of reclamation and registration. provided to each displaced family Income Generating Activity (IGA) Support- Rs. 15,000 per family Incase Displaced- @ 0.10 acre or cash equivalent @ Rs. 50,000 for each displaced family opting for selfrelocation elsewhere Definitions used in the Framework 1. Displaced person means a family ordinarily residing in the project area and on account of acquisition of his/her homestead land is displaced from such area or required to be displaced. 2. Family" means the person and his or her spouse, minor sons, unmarried daughters, minor brothers or unmarried sisters, father, mother and other members residing with him or her and dependent on him or her for his / her livelihoods. Each of the following categories will be treated as a separate family for the purpose of extending rehabilitation benefits under this Policy. ( R & R Policy, 2006) a) A major son irrespective of his marital status. b) Unmarried daughter / sister more than 30 years of age. c) Physically and mentally challenged person irrespective of age and sex; (duly certified by the authorized Medical Board). For this purpose, the blind/ the deaf/ the orthopedically handicapped/ mentally challenged person suffering from more than 40% permanent disability will only be considered as separate family. d) Minor orphan, who has lost both his/her parents. e) A widow or a woman divorcee 3. Affected family is a family whose land is affected by the project. 4. Encroachment is unauthorized occupation of government land. 5. A landless encroacher is an encroacher as defined in the OPLE Act, 1972. 6. Marginal Farmers means a farmer who is left with less than or equal to 2.5 acres of land after acquisition. 7. Small Farmers means a farmer who owns more than 2.5 acres but less than 5 acres after acquisition. 8. Other Farmers are farmers who own more than 5 acres of land after acquisition. 9. Livelihood Support Assistance (LSA) is meant towards Rehabilitation Assistance, to ensure, in the least, restore pre-acquisition incomes. 10. Income Generating Activity includes both on-farm and off-farm livelihood options, such as kitchen gardening, introduction of new HYV varieties and techniques, allied vocations (poultry, goatery, fishery, etc.) basket weaving, handicrafts, NTFP, etc. 11. Eligibility of the landless/encroachers should be as per Para 9 (a) and 9 (b) of the R&R Policy 2006 12. The information related to income levels of project affected households from the baseline survey will be used for deciding the livelihood assistance entitlement for encroachers. 19

Legal Framework 47. The land related issues under the OCTM Project will be governed by 5 policies and acts. Relevant sections from these acts have been provided Annexure 3. 48. The Orissa Resettlement and Rehabilitation Policy 2006 (with amendments dated 4th June, 2007) provides guidelines for identifying project affected families and defining their compensation and rehabilitation entitlements. The Orissa Prevention of Land Encroachment Act, 1972 deals specifically with procedures for managing encroachment and deciding claims of encroachers. The Orissa Scheduled Areas Transfer of Immovable Property, 1956 restricts transfer of tribal land to a non-tribal in a scheduled area. 49. The Panchayat Extension to Scheduled Areas (PESA) Act, 1996 will play a major role in the context of the OCTM Project as about 27% preliminarily identified 1572 tanks fall in scheduled areas. All land issues related to tribals in a scheduled area will be governed by provisions of PESA. 50. The Land Acquisition Act 1894 lays down procedures and statutes for acquiring land. A standard Land Acquisition Process takes 13 months (386 days approx.). Keeping in mind the project timeframe the following options can be explored to reduce the time process- The LA Act provides an emergency clause (section 17) which empowers the Government to take possession of land after declaration under section 6 of the Act and section 9 is issued. Section 17 allows the Collector to take possession of the land after 15 days of issuing notice under section 9 and 80% of award amount is paid. The Project Proponent may also opt for direct buyout of land on the basis of negotiated price after issue of notification requiring acquisition of land under relevant Act (s). Negotiated Settlement/Consent Award- Under the consent award, the land loser negotiates with the Collector for the loss of land. The process of consent award is initiated after the approval of preliminary value of land. Under the consent award system, benchmark market rates for land required would be established by the District Collector. OCTMP RPF Vs Orissa State and World Bank (WB) Policies 51. OCTMP policy is premised on the Orissa State as well as WB policies, but provides an elaboration in terms of: (i) categories of PAFs (ii) definitions of terminologies; (iii) methods for reducing delays in settling compensation and rehabilitation assistance. The OCTM Project Policy s principal objective is to ensure that no affected household becomes poorer with the intervention. At the minimum, pre-acquisition incomes will be restored, if not enhanced. Towards this, apart form compensation, livelihood assistance for Income Generating Activity (includes both on-farm and off-farm livelihood options), such as kitchen gardening, introduction of new HYV varieties and techniques, allied vocations (poultry, rearing of goats, fishery, etc.) basket weaving, handicrafts, NTFP, etc has also been provided. 20

Methods of valuing affected assets 52. The major assets involved will be new land which has to be acquired or encroached land which is part of the existing structures of the tank system. Under the project design the Pani Panchayat members, Support Organizations, Irrigation and Revenue Department representatives will have a major role to play in the entire LA process. They will actively support and carry out the estimation of land requirement (quantum, exact location, titleholder etc.) based on the renovation activities planned. 53. The loss of land by the PAF can be compensated by providing the project affected family with either land or the cash equivalent of land based on its market value. In the case of the OCTM project, it is expected that about 50-60% of the cases, replacement of land lost can be made by providing similar patches of land elsewhere. In the remaining cases, the Orissa R & R policy provides for a cash equivalent of up to Rs. 1,00,000 for irrigated land and Rs. 50,000 for unirrigated land. The market value of the land will be calculated on the basis of the benchmark valuation fixed at the Tehsil (sub-district) level. The valuation of the land will be based on the market value subject to the limit eshtablished by benchmark valuation. Benchmark Valuation 54. As per the Orissa Stamp Rules, 1952, under Rule 37, District Level & Sub-district Level Committees are constituted under the Chairmanship of the Collector & Sub-Collector respectively. The Sub-district Level Committee collects information on the value of properties & furnishes the same to the District Level Committee. The Sub-Registrars furnish information in respect of agricultural & non-agricultural land in rural areas. They also furnish average value of land. The Sub-District Valuation Committee then shall analyze the data & propose value of the land to District Valuation Committee. The District Valuation Committee shall analyze the date & fix the bench mark valuation and send the same for approval by the Government. Tehsil is the unit for Bench mark valuation. The Benchmark valuation will vary as per the type of land. 55. Preparation of bench mark guidelines for all the 30 districts is on the verge of completion. The Bench mark valuation will be used for compensation calculation for all categories of land existing in any Tehsil. The method for calculating the market value of land has been provided vide Annexure II. Redressal of Grievances 56. All grievances related to land acquisition will be resolved through the provisions available in the R & R Policy, 2006. According to the policy, a Grievance Redressal Committee will be set up at the district level (under the leadership of the Distrct Collector) to deal with grievances of the project affected people relating to land acquisition and encroachment. To supplement and/ or complement the efforts of this committee, the project will also have a grievance redressal mechanism which will be through the Pani Panchayat (Water Users Assocation) at the tank level; the Support Agency (NGOs) and representatives from the District Project Unit at the district level. Thus, Grievance Redressal Mechanisms will be available at four levels : (i) Village through Pani Panchayats; (ii) Sub- District level through Support Agencies (NGOs); (iii) Project Level within a district through the 21

Distrcict Project Manager (DPM); and (iv) District level through the office of the Collector. Macro level issues beyond the purview of the District like inclusion of a certain category of PAF into the beneficiary list or any suggested policy amendment will be managed by the State Project Unit. Table 5 Grievance Redressal Mechanism Level Agency Time period for redressal of grievances Tank Pani Panchayat Maximum of one week Sub- District Support Organisations, District Support Unit Project District Project Management Unit District District Level Committee State State Project Unit Maximum of two weeks Maximum of three weeks. Maximum of one month Maximum of two months Issues likely to emerge Encroachment Land acquisition Livelihood Assistance Compensation Responsibility Executive Body of Pani Panchayat Representative of SO Representative of District Support Unit vis-à-vis the issue at hand like finance, livelihood etc. District Project Manager District Collector Project Director Representative of State Project Unit vis-à-vis the issue at hand like finance, livelihood etc. Consultation 57. In order to ensure participation of all stakeholders, consultations will be held with all stakeholder groups prior to planning and implementation of each new intervention under the project. Also periodic consultations will be held with all stakeholder groups for monitoring the ongoing project activities. Consultations should be held with the following groups at regular intervals- Project Affected Persons, Pani Panchayat members, tribals etc. The main stages when consultations are required are during Estimation of land requirement (quantum, exact location, titleholder etc.) based on the renovation activities planned. Identification and preliminary verification of Encroachers Socio-economic survey for preparing the socio-economic baseline of the displaced/affected families. Motivation of titleholders and encroachers to facilitate the Land Acquisition process. They will also provide support in execution of the communication plan (for the project) for awareness creation in affected areas. Identifying livelihood support programmes for project affected communities. In addition to these activity specific consultations, a quarterly consultation should be held with all stakeholder groups at the tank level. 22