A P P R A I S A L O F T H E R I G H T TO FA I R C O M P E N S AT I O N A N D

T R A N S PA R E N C Y I N L A N D AC Q U I S I T I O N , R E H A B I L I TAT I O N
A N D R E S E T T L E M E N T AC T, 2 0 1 3

CASESTUDY: Bihar State Highways III Project

SH-85 (Akbarnagar -Amarpur) Road Project

Submitted To: Dr. Vidya Ghuge Submitted by: Samyukta.M.Naik

MT22UPL004
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

PROJECT DESCRIPTION

• The Bihar State Road Development Corporation Limited

(BSRDCL), Government of Bihar is planning to upgrade
State Highway number 85 (SH-85) from existing
single lane to double lane with total road length of
29.506 km in Bhagalpur and Banka districts and requested
ADB for the financing of the project.

• The land use pattern of the project area is mainly SH-85, Bihar Location
agricultural land followed by settlements and cultivable
PROJECT IMPACTS
land.
• The State Government will be the requiring body
• Cost of Construction Rs 220.71 Cr.

PURPOSE:
• The project aims to provide smooth traffic movement for
the escalating traffic and enhance capacity and improved
services in the region.
LAND ACQUISITION REQUIREMENTS UNDER THE PROJECT
• The project on its implementation would increase the
physical infrastructure and boost the economic growth in
the region.
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

CHAPTER II- DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE

Social categories of the DP’s

SOCIAL IMPACT ASSESSMENT

Number of DP’s
• The Government of Bihar has authorized Lalit Narayan Mishra
Institute of Economic Development & Social Change, Patna
and A N Sinha Institute of Social Studies, Patna as Social Vulnerable Households being affected in the project
Impact Assessment Unit under the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement
Act, 2013. Annual Income level of the Affected Households
• The social stratification of the project area shows the dominance of
other backward caste (OBC) population with 326 (61.39%)
households. Educational Status of DP’s
• 8 women headed households were affected in the project.
Occupational Status of DP’s

Project Impact on Indigenous people

Project Impact on Women

Social Categories of the DP’s

Factors Considered For Social Impact Assessment

 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

VALUATION OF ASSETS
• The methodology for verifying the replacement cost for each type of loss 2. Valuation of Building and Structure:
will be calculated as per the provision made in the RFCT in LARR Act -
2013, which take account of market value, additional solatium, transitional • The cost of buildings will be estimated based on the
value. updated Basic Schedule of Rates (BSR) as of date
without depreciation. Since all the affected structures
1. Valuation of Land: The District Collector/Deputy Commissioner shall belong to non-titleholders, no Solatium will be added to
determine the market value of the land with the assessment of the estimated market value of the structure as it is
provided to only the titleholders under the provision of
a). The market value of where the land is situated RFCT in LARR Act -2013.
b).The average sale price for a similar type of land situated in the vicinity.
c). Consented amount of compensation as agreed upon, 3. Valuation of Trees:
Whichever is higher. • Compensation for trees will be based on their full
replacement cost.
• The market value calculated as per above section (1) shall be multiplied
by a factor of • The District Collector/Deputy Commissioner can use
the services of experienced persons/agencies in agriculture,
i) 1 (one) to 2 (two) in rural areas based on the distance of project
forestry, horticulture, sericulture, or any other field to
from Urban Area
determine the market value of trees and plants.
ii) 1(one) in urban areas.
• All compensation and assistance will be paid to DPs at least
• Solatium amount equivalent to 100% of the Market value 60 days prior to displacement or dispossession of
assets.
The cost of land in rural areas = X + 100% of X,
The cost of land in urban areas = X + 100% of X where X = Market Value
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

ENTITLEMENTS, ASSISTANCE AND BENEFITS The displaced persons were entitled to the following five types of
compensation and assistance packages:
Cut-off-Date for Entitlement
a) Compensation for the loss of land, crops/ trees at their replacement cost
• In case of land acquisition, the date of publication of
preliminary notification for acquisition under section 11 b) Compensation for structures (residential/ commercial) and other immovable assets
of the RFCT in LARR Act – 2013 was treated as the cut-off date. at their replacement cost;

• For non-title holders, the cut-off date was the end of the census c) Assistance in lieu of the loss of business/ wage income and income restoration
survey. DPs who settle in the affected areas after the cut-off date assistance
were not be eligible for compensation. d) Assistance for shifting and provision for the relocation site (if required)
• All displaced households and persons were entitled to a e) Rebuilding and/ or restoration of community resources/facilities.
combination of compensation packages and resettlement
assistance. f) Compensation for the loss of trees at their replacement cost.

RELOCATION OF HOUSING AND SETTLEMENTS

• DPs were consulted during the census survey and out of 501 All the structures affected in the project will be eligible for the following:
households losing structures 478 (95.4%) have opted for self-
(i) Compensation for structure will be paid at the replacement cost to be calculated as
relocation and only 23 have opted for project-based relocation.
per latest prevailing basic schedules of rates (BSR) without depreciation,
• Strategy: During Focused group discussion people were in
(ii) One-time Resettlement allowance of Rs. 50,000 per affected household
favour of resettlement within the village to avoid disruption
of community life and problem with host community. Therefore, (iii) Shifting assistance to all structures at of Rs. 50,000 per structure,
cash compensation at market rate along with
relocation assistances is adopted as more practical (iv) Right to salvage materials from structure and other assets with no deductions from
solution in this case. replacement value.
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

INCOME RESTORATION AND REHABILITATION

Provisions for Loss of Livelihood
• Executing Agency compensated for the loss of income or
livelihood sources at full replacement cost.
• The EA also provided assistance such as credit facilities,
training, and employment opportunities so that they can
improve, or at least restore, their income-earning
capacity, production levels, and standards of living to
Loss of Livelihoods in the Project national minimum standard.
The above table shows that about 55% households losing livelihood under • In cases where land acquisition affects commercial
the project are owners of commercial structure. Income loses due to loss structures, affected business owners are entitled to:
of commercial structure were restored in a sustainable manner
(i) the costs of reestablishing commercial activities elsewhere
Income Restoration Measures
(ii) the net income lost during the transition period
• To begin with providing employment to the local people during the
construction phase will enable them to benefit from the project, reduce the (iii) the costs of transferring and reinstalling plant, machinery,
size of intrusive work forces and keep more of the resources spent on the or other equipment.
project in the local economy.
• Among specific rehabilitation measures, capacity buildings of all the
economically displaced persons will be carried out by the project authority.
• Fund for training is provided in the R&R budget keeping in view the
average expenditure for ongoing training programs in the project area.
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

RESETTLEMENT BUDGET AND FINANCING PLAN

COMPENSATION
• Private Agricultural Land: The base cost has been calculated
as per the government rate published in 2015. However,
the actual compensation for land at replacement cost was
determined by District Collector as prescribed by the LA
Act.
• Residential/ Commercial and other structures: The
average rate for permanent structures without land has been
calculated at Rs. 12,000/m2, semi-permanent structures have
been calculated at Rs. 7,000/m2, and temporary structures
have been calculated at the rate of Rs. 4,000/m2. However, the
actual compensation was calculated by the professional valuer
considering the latest BSR without depreciation.
• Compensation for tree: A lump sum rate of Rs. 15,000/-
for fruit bearing trees and Rs. 8,000/- for non-fruit
bearing trees has been considered based on the market
assessment. The actual cost of trees will be calculated as per the
Horticulture Department.

Rehabilitation and Resettlement Budget- 15.3 Crores

 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

STAKEHOLDERS CONSULTATION AND PARTICIPATION AGENCIES RESPONSIBLE FOR RESETTLEMENT

IMPLEMENTATION
• All displaced households were consulted while interacting with them during The Executing Agency (EA)-Bihar State Road
Development Corporation (BSRDC)
the project census survey.
• Consultation meetings were organized to get wider public input from both Project Implementation Unit (PIU)
the primary and secondary stakeholders.
a. District level b. Field level

Detailed Project Report (DPR) Consultants

RP Implementing NGO

Construction Supervision Consultant (CSC)

Methods of Public Consultations Contractor

District level officials

Community Based Organizations &Village Level

Committee
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

INSTITUTIONAL ARRANGEMENT REHABILITATION AND RESETTLEMENT IMPLEMENTATION SCHEDULE

The primary institutions, involved in the implementation

process, are as follows:
• Bihar State Road Development Corporation (BSRDC),
Government of Bihar
• Project Implementation Unit (PIU)
• Non-Government Organization (NGO)
• Village Level Committee (VLC)
• District Grievance Redress Committee (GRC)
• Construction Supervision Consultant (CSC)

Executing Agency
• The Executing Agency (EA) for the Project is BSRDC,
Government of Bihar. • The implementation schedule was structured package wise.
• The EA, headed by MD will have overall responsibility • The entire stretch was divided into various contract packages and the completion of
for the implementation of loan and will also be resettlement implementation for each contract package was the pre-condition to
responsible for the overall coordination among ADB, start of the civil work at that particular contract package.
Government of Bihar.
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

PROJECT APPRAISAL
Procedure For Land Acquisition Under This Project
▪ Submission of requisition for land acquisition along with other ▪ Declaration that land is required for public purpose (Chapter IV section 19)
required document to concerned District Authority. (Chapter II
section 4) ▪ Hearing of objection (Chapter IV section 19)

▪ Notification by Government for commencement of consultation and ▪ Declaration of final award by collector (Chapter V section 31)
SIA (Chapter II section 4). ▪ Payment of full amount of compensation
▪ Completion of SIA study culminating in SIA report. (Chapter II ▪ Payment of monetary part of R&R.
section 4)
▪ Taking possession of land acquired. (Chapter V section 38)
▪ Conduct public hearing for SIA (Chapter II section 5)
▪ Infrastructural component of R&R package to be provided (The Third
▪ Constitution of SIA Group to appraise SIA study report. (Chapter II Schedule)
section 7)
▪ Displacement of affected families.
▪ Submission of appraisal of SIA report and recommendations by
expert group. (Chapter II section 7) Inferences
▪ Preliminary notification for acquisition of land(Chapter IV section
11) • The Resettlement plan for the project addresses all applicable sections from

▪ Updation of land records by LA Authority RFCT in LARR Act -2013, which take account of market value, & additional
solatium.
▪ Hearing of objection under (Chapter IV section 15)
▪ Preparation of R&R Scheme and disclosure (Chapter IV section 16) • All titleholders DPs, non-titleholder DPs were considered for Compensation.
 B I H A R S TAT E H I G H WAY S I I I - S H - 8 5 ROA D P RO J E C T

PROJECT APPRAISAL

▪ The legal framework and principles adopted for addressing resettlement

issues in the project involves Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement
Act (RFCT in LARR), 2013 and Asian Development Banks’s
Safeguard Policy Statement (SPS), 2009.
▪ The Project serves the public purpose by providing improved linkages
between the village communities and urban center, which provides wider
marketing facilities as well as work opportunities. Special attention was given
during design phases to minimize the adverse impact on land acquisition and
resettlement
▪ Income restoration attempts were made by providing direct employment
opportunities for the roadside communities and specially those who are
engaged as wage laborers, petty contractors and suppliers of raw materials.
▪ The solatium award was decided to be 100% over and above the loss.
▪ Public Consultation in the Project was considered through various
methods such as Census Survey involving head of the household as
respondent , Focus Group Discussions (FGD) at affected villages, Individual
interviews, joint field visit etc. thus showing more transparency and
maximum public participation. Project Status : Completed in 2021
 THANKYOU

REFERENCES
• https://www.adb.org/projects/documents/ind-51180-001-rp-2
• https://timesofindia.indiatimes.com/city/patna/nitish-to-inaugurate-4-state-
highways-today/articleshow/85603071.cms
• The Right To Fair Compensation And Transparency In Land Acquisition,
Rehabilitation And Resettlement Act, 2013