58     Appendix 17


A.     Introduction

1.       The India Railway Sector Improvement Project (RSIP) involves construction and
doubling of four subprojects in the first phase of project preparation and implementation. These
are: (i) Tomka-Keonjhar new railway line (96 km); (ii) double tracking of Pullampet-Gooty (154
km); (iii) adding a third track on Bhatapara-Urkura (60 km); and (iv) construction of the
Mahanadi River second bridge (2.1 km). The social analysis and resettlement plans for the
subprojects have been prepared following the Land Acquisition Act (1894) and the Asian
Development Bank (ADB) policy on involuntary resettlement (1995).

2.      This framework has been prepared for additional subprojects as required under ADB
policy. The framework outlines the policy and procedures for preparation of subsequent
subprojects under the sector loan. The special purpose vehicle ( SPV) will be responsible to
prepare social analysis and resettlement plans for additional subprojects as outlined in this
framework and submit them to ADB for review and approval.

B.     Resettlement Policy and Framework

3.       The current legislation governing land acquisition for public purposes is the Land
Acquisition Act of 1894. In accordance with the Act, the legal process for land acquisition is
initiated by the project-sponsors/SPV to the District Collector (DC) of the respective district.
According to the “circle rate” used by the DC, the assessed value of land is considered the
replacement value for properties. However, the Act of 1894 or state policies (where available)
do not address social and economic impacts of land acquisition and resettlement.

4.       ADB policy requires (i) avoidance or minimization of impacts where possible;
(ii) consultation with affected people in project planning and implementation, including
disclosure of resettlement plan (RP) and project-related information; (iii) payment of
compensation for acquired assets at the market/replacement value; (iv) resettlement assistance
to affected people, including non-titled persons (e.g., informal dwellers/squatters, and
encroachers; (v) special attention to vulnerable people and/groups; and (vi) an income
restoration and rehabilitation program. Since compensation and rehabilitation based on the Act
of 1894 and state policies do not meet these requirements, ADB’s policy on involuntary
resettlement will be applied for additional subprojects.

5.      The framework reflects the borrower’s land acquisition laws and regulations and ADB’s
policy on involuntary resettlement and other social safeguard guidelines. It stipulates eligibility
and provisions for all types of losses (land, crops/trees, structures, business/employment, and
workdays/wages). Since land for land may not be a feasible option, the affected persons will be
compensated at full replacement cost. Affected households to be compensated by the DC,
following the Act of 1894, for lost assets will receive additional cash grants and other
resettlement assistance such as a shifting allowance, and compensation for loss of
workdays/income due to dislocation. Female-headed households and other vulnerable
households will be eligible for further cash assistance for relocation and house reconstruction.
Table A17 presents a general entitlement matrix that would apply to additional subprojects,
based on specific project impacts.
                                                                                                           Appendix 17               59

                                            Table A17: Entitlement Matrix

                                        Definition                                                                   Expected
     Type of Loss       Application      of APs                              Entitlement                              Results
     1. Loss of         Land on the    (i) Legal     • Cash compensation based on “circle rate” under GOI          Replacement
     agricultural/ or   project ROW    owners; and     Land Acquisition Law and state policies to be paid by       of agricultural
     any other type                    (ii) APs with   DCa                                                         land or the
     of land by                        traditional   • Refund of registration cost, stamps etc. incurred for       value to the
     owners                            land rights     replacement land to be paid by the project; (i)             APs
                                                       replacement land must be bought within a year from
                                                       the date of DC payments; and (ii) the registration cost
                                                       to be paid will be on the amount received from DC.
     2. Loss of         Land on the    (i) Legal     • Cash compensation based on the circle rate under            Replacement
     homestead          ROW            owners of       GOI Land Acquisition Law and state policies to be           of homestead/
     and                               land; (ii) APs paid by DC                                                   commercial
     commercial                        with          • Refund of registration cost, stamps etc. incurred for       land
     land                              traditional     replacement land to be paid by the project; (i)
                                       land rights     replacement land must be bought within a year from
                                                       the date of DC payments; and (ii) the registration cost
                                                       to be paid will be on the amount received from DC.
     3. Loss of         Structure on   (i) Owner(s) • Cash compensation under Government of India Land             Reconstruction
     residential/       the ROW        of structures   Acquisition/state laws to be paid by DC (a                  of structure
     commercial                        identified by   depreciation value is deducted based on the age of          and relocation
     structures by                     DC; (ii)        the structure)                                              to new sites
     owners and                        owners of     • The depreciated value thus deducted will be paid by
     informal                          structure       the project as additional grant to build new structure
     settlers/                         identified by • A lump sum transfer grant for shifting household
     squatters                         census and      assets and other belongs to relocated sites b
     4. Loss of         Standing       Owners and • Compensation to be paid by DC at the rate estimated            Compensation
     trees, crops,      crops, trees   beneficiaries   by (i) the Forest Department for timber trees; (ii) State   for standing
     perennials         on ROW         of land         Agriculture Extension Department for crops; and (iii)       crops and
                        land                           Horticulture Department for perennial trees c               trees
     5. Loss of         Households     Head of       • Cash assistance for 90 days at the local agricultural       Subsistence
     income and         affected by    households      wage rate                                                   and income in
     work days due      ROW            identified by • Additional cash assistance to vulnerable groups,            post-displaced
     to                                the DC list     including female-headed households d                        period and
     displacement                      and SES       • Temporary employment in the project construction            poverty
                                                       work to APs with particular attention to APs below          reduction
                                                       poverty line by the project contractor.
     6. Loss of         Structures     Affected      • Reconstruction of community structures and               Restoration of
     community          and other      communities     replacement of common property resources as              community
     structure and      resources      and groups      appropriate                                              structures and
     common             (e.g., land,                                                                            common
     property           water,                                                                                  property
     resources          access to                                                                               resources
                        under ROW
  APs = affected persons, DC = District Commissioner, ROW = right of way, SES = socioeconomic survey .
    Loss of agricultural land by titled owners: in case of severed holding, an additional grant of 15% of the compensation will be
    Loss of residential/commercial structure: shifting allowance will be paid at Rs1,500 per households people affected will be
    allowed to salvage materials from their demolished structures; the affected squatters will receive transitional allowance of
    Rs2,000 per family lump sum.
    Loss of trees, crops and perennials: compensation will be paid at market value. Sharecroppers will be paid at market value.
    Assistance to vulnerable: grants will be paid to those below the poverty line, and the vulnerable, including women-headed
    households, at the rate of Rs5,000 per eligible households. One family members from the affected household will also receive
    skill training linked to employment opportunities at Rs2,000 per household by way of rehabilitation.

C.         Procedures for Resettlement Plan Preparation

6.        The additional subprojects RP will be prepared as follows: (i) the SPV to carry out social
impact assessment surveys for identified subprojects, based on preliminary technical designs;
(ii) if impacts are found to be significant, the SPV will prepare full RPs for each subprojects; and
60     Appendix 17

(iii) if subproject impacts are less than significant, short RPs will be sufficient for project
preparation. SPV consultants for preparatory studies will include expert resettlement specialist
familiar with ADB policy and procedures for preparation of additional subprojects RPs. The RPs
must comply with ADB’s policy on involuntary resettlement and other social safeguard
guidelines. RPs for the sample subprojects will be used as models for preparation and
implementation of additional subprojects.

D.     Institutional Responsibilities

7.      For subproject RPs, the SPV will have overall coordination, planning, implementation
and financing responsibilities. The SPV fully recognizes the complexity of the resettlement
element in the Project. Therefore, experienced nongovernment organizations (NGOs) will be
hired for RP to assist implementation with clearly defined tasks, including community-based
social development programs as appropriate. A senior SPV official at the rank of executive
engineer will be appointed as chief resettlement officer to supervise the implementation work.
The appointed NGO will open field offices and will involve affected persons, including women, in
the implementation process.

8.      The SPV will ensure that the NGO responsible for RP preparation for subprojects is
aware of the framework and procedures for resettlement planning so that appropriate
entitlements and mitigation measures are established in the RP. The SPV will further ensure
that resettlement budgets are delivered on time to the DC office and to the implementing NGOs
for timely RP implementation.

E.     Disclosure, Consultation, and Grievances

9.      Each RP will be prepared and implemented in close consultation with the stakeholders
and will involve focus group discussions and meetings, particularly with the project-affected
people. This RP framework will be made available in local language(s) during focus group
discussions and meetings at the village/community level. Copies of draft RPs will be available at
the local level to stakeholders for local inputs. Complaints and grievance procedures will be
outlined in each RP and grievance redress committees (GRCs) will be established for each
subproject with representation from the SPV, APs, women/ vulnerable groups, local
government, and NGOs. The chief resettlement officer will chair the GRC. Other than disputes
relating to ownership rights under the court of law, the GRC will review grievances involving all
resettlement benefits, relocation, and other assistance. Grievances will be redressed within 2-4
weeks from the date of lodging the complaint.

F.     Monitoring and Evaluation

10.     The SPV will establish a quarterly monitoring system involving the SPV and
implementing NGO staff, and prepare progress reports on all aspects of land
acquisition/resettlement and social development activities. The monitoring consultants, to be
hired by the SPV in concurrence with ADB, will monitor the implementation of the RP and will
provide ADB with quarterly reports on the status of RP implementation.

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