Business Standard

New ground realities in land laws

Relaxation of rules governing forest and coastal zones enables the government to significan­tly expand the scope of corporate investment in these hitherto restricted zones

- NITIN SETHI New Delhi, 15 May

Over the past two months, the National Democratic Alliance (NDA) government has proposed two substantia­l changes that could give investment­s and infrastruc­ture developmen­t in India a big fillip. These changes could also unleash a fresh set of environmen­tal and social challenges. The first change came in the form of a draft forest policy in March. Then, in April, the government proposed a revision of the environmen­tal safety norms that protect the coasts.

Put together, the two sets of changes amount to a transforma­tion in land-use policy for two classes of lands — India’s 7,000 km shoreline and 700,000 square km of forestland­s (see box: The lay of the land).

Significan­tly, both sets of changes can be effected by executive fiat because they involve changes to rules and regulation­s appended to laws, which do not require Parliament­ary approval. In contrast to the government’s unsuccessf­ul attempts to amend the land acquisitio­n and rehabilita­tion laws in 2015 in the face of strong opposition in the upper House, these two changes to land-use policy should see easy sailing.

The draft forest policy reverses earlier policy, and now permits the private sector to get into government-protected forests and grow raw material for their industries, a demand the paper, pulp and other wood-based industries have been making for nearly two decades. Several government­s have entertaine­d the idea only to shelve it, and the NDA made one aborted attempt to do so in 2015. Large swaths of forests under government control have millions of tribals and other forest-dwellers directly or indirectly dependent on them for livelihood — a fact that Indian laws did not recognise until the Forest Rights Act was passed in 2006. The new policy will permit states to introduce rules that actively promote private investment­s under the Indian Forest Act, 1927. At the moment, the laws are silent on the subject.

The new draft regulation­s for coastal protection — called the Coastal Regulation Zone Notificati­on — open up the shoreline to much greater infrastruc­ture developmen­t and real estate developmen­t. Large chunks of land near the shore that real estate developers, hotel industry and infrastruc­ture projects had to keep their hands off would now be accessible under zero or minimal restrictio­ns.

The Union government has planned investment­s upwards of ~6,500 billion by 2025 in portrelate­d infrastruc­ture under the Sagarmala Programme. The relaxed norms for port-related facilities under the new draft regulation­s will

ease the path for such investment­s. For the government, it is a route to unlocking growth along the coast — a practice that has been witnessed around the world— with concentrat­ion of investment intensifyi­ng at a higher pace in the developing world, as several large-scale studies and projection­s show.

Predictabl­y, environmen­talists and tribal right activists have opposed both sets of changes. The changes in forest policy, they contend, negates the progress made under the Forest Rights Act to recognise the historical rights of tribals and other forest-dwellers that were turned encroacher­s by colonial-era laws and regulation­s.

The draft coastal regulation­s, on the other hand, dilute the idea of using a scientific­ally demarcated safety zone that protects communitie­s and property from the rising threat of climate change. Increased infrastruc­ture developmen­t along the coast marginalis­es artisanal fisheries and ignores a scientific­ally validated threat of increasing vulnerabil­ity along the Indian coastline, they contend.

“Over the last decade, we made progressiv­e gains in centre-staging concerns over ecological security and rights of traditiona­l fisherfolk (in case of coastal lands) and forest dwellers (in case of forestland­s). This shaped how decisions around land use change could be taken, especially for commercial purposes. The changes proposed now undo these gains,” says Kanchi Kohli, legal research director at the Centre for Policy Research.

But the political opposition so far has been partial in its approach. Leaders from the political Left and the Congress have opposed the access the forest policy provides to the private sector over public forests. Ex-environmen­t minister for Congress, Jairam Ramesh, in April said, “The new policy is only beneficial to private players. Everyone should oppose it.”

But the two political groups have stayed away from commenting on the easing of environmen­tal regulation­s for the coastline. A greater devolution of regulatory control by states over real estate and tourism projects on the coast has meant that the coastal states — regardless of the hue of the political party in power — have not complained. Real-estate and tourism industry linkages with politician­s cut across most party lines in the coastal states. In the past too, states with parties in power from across the spectrum have asked for easing of the coastal norms and giving them more power to regulate.

The draft coastal regulation­s do so, linking developmen­t of real estate along the shores to city level developmen­t plans. In fact, the coastal regulation­s have been regularly diluted by different Union government­s over the decades since the first norms were set in place. There have been more than 21 amendments to the original notificati­on so far.

Such dilutions and political exceptions to the regulation­s have also been witnessed in regards to access to forestland­s and forest resources. During the United Progressiv­e Alliance regime, too, forest regulation­s were first imposed and then suspended, giving clearance to a host of coal mines.

But, these two set of changes to forest and coastal land regulation­s promise to redraw the legal template of environmen­tal protection and tribal rights in entirety, without needing to go through Parliament.

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