1. Ram Kumar Kakani, T L Raghu Ram, & Nutan Shashi Tigga/ XLRI Jamshedpur / 2008
Insights Into Land
Acquisition Experiences
0f Private Businesses in
India
Insights Into LandInsights Into Land
Acquisition ExperiencesAcquisition Experiences
0f Private Businesses in0f Private Businesses in
IndiaIndia
XLRI Jamshedpur Working Paper No. 08-11;
Available at: http://ssrn.com/abstract=1295407

2. ♦Legal Clearances, Environmental Clearances,
Court Orders can be managed.
♦Most ‘private businesses’ know!
♦Stress on ‘Social Consent’ to Operate
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 2

3. MEANS ...
SECURING THE FREE, PRIOR, AND INFORMED
CONSENT OF AFFECTED COMMUNITIES TO
PART WITH OR SHARE THEIR RESOURCES AND
ALSO GIVE CONSENT TO THE BUSINESS TO
OPERATE IN THEIR COMMUNITY.
‘Social Consent’ to Operate
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008
3

4. Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 4
Project Brief Sponsor Name Place Status
Car Plant Tata Motors Singur (West Bengal) Abandoned
Power Plant, Fertilizer & Steel Tata Group Barapukuria (Bangladesh) Abandoned
Steel Plant Tata Steel Gopalpur (Orissa) Abandoned
Titanium Dioxide Tata Steel Tuticorin (Tamil Nadu) Abandoned
Steel Plant Tata Steel Saraikela (Jharkhand) Temporarily Stalled
Alumina Refinery Vedanta (Sterlite) Lanjigarh (Orissa) Tending towards Failure
Aluminuim Smelter Vedanta (Sterlite) Jharsuguda (Orissa) Tending towards Failure
Steel Plant Bhusan Steel Potka (Jharkhand) Tending towards Failure
Steel Plant Tata Steel Bastar (Chhattisgarh) Tending towards Failure
Steel Plant Essar Group Paradip (Orissa) Tending towards Failure
Steel Plant POSCO Korea Paradip (Orissa) Tending towards Failure
Steel Plant L N Mittal Group Torpa (Jharkhand) Tending towards Failure
Steel Plant L N Mittal Group Kasaphal (Orissa) Tending towards Failure
Steel Plant Tata Steel Kalinganagar (Orissa) Tending towards Failure
List of Industrial Projects of Private Business along with their Status

5. Tata Motors Small Car Project:
Unsuccessful land acquisition model
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 5
Legend
West Bengal
State
Tata Group
Local People
Rent Seeking
Agents incl.
Political
Media
Stage
1
Stage 2
Stage
3

6. Key Characteristics of Unsuccessful
Land Acquisitions
♦ High Profile Promoters (Tuticorn)
♦ Acquisition of Fertile Land (Keonjahar)
♦ Slow Acquisition Process (Gopalpur)
♦ Unacceptable Rehabilitation Package (Lanjigarh)
♦ No Direct Talks with the Locals (Kalinganagar)
♦ Aligning with Political Parties (Singur)
♦ Wrong Communication / Confusing Signals
(Torpa Vs Kasaphal)
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 6

7. Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 7
Project Brief Sponsor Name Place Status
Car Plant Hyundai Motors
Irungattukottai (Tamil
Nadu)
Successful
Port & Special Economic
Zone
Adani Group Mundra (Gujarat) Successful
Power Plant
Navin Jindal
Group
Raigarh (Chhattisgarh) Successful
Special Economic Zone Mahindra Group Bagru (Rajasthan) Successful
Special Economic Zone Mahindra Group
Maraimalainagar (Tamil
Nadu)
Successful
Power Plant
Sajjan Jindal
Group
Barmer (Rajasthan)
Tending towards
Success
Power Plant Moser Baer Chandil (Jharkhand)
Tending towards
Success
Steel Plant
Sajjan Jindal
Group
Salboni (West Bengal)
Tending towards
Success
List of Industrial Projects of Private Business along with their Status

8. JSW Bengal Steel Project: Successful
land acquisition model
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 8
Legend
West Bengal
State
Jindal Group
Local People
Agents /
Middlemen /
Outsiders
Media
Stage
1 Stage 2
Stage 3

9. Key Characteristics of Successful
Land Acquisitions
♦ Avoid Productive Land (Salboni)
♦ Open Direct communication channels with
Locals (Maraimalainagar)
♦ Equitable benefit sharing (Salboni & Barmer)
♦ No (formal) Political alignment (Raigarh)
♦ Coordinated Corporate Communications
(Irungattukotai)
Ram, Raghu, & Nutan / XLRI Jamshedpur / 2008 9
XLRI Jamshedpur Working Paper No. 08-11;
Available at: http://ssrn.com/abstract=1295407

10. 10
Indigenous
communities
•Significant Influence, but may
vary
•Free, Prior, Informed consent a
must
•Must be involved prior to project
development
Transient
community
•Less Influence
•Consultation, not consent
•Can be approached
simultaneously with
project development
NGOs
•Can have strong influence
•Can influence media
•Consent not required but consultation
suggested
•Consultation prior to or during project
development
Non-Indigenous local
communities
•Can have significant
Influence
•Consent preferred
•Consultation Must before
project development
High
influence
Low influence
Social
Consent
Required
Consultatio
n preferred
Stakeholder Engagement Framework
(Refer: Ethical Funds Company, 2008)