Social Impact Assessment under the RFCTLARR Act

Social Impact Assessment (SIA) is a study of how acquiring land will affect people, their livelihoods and community life. Under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act), it informs the decision on whether a proposed acquisition serves a public purpose and whether its benefits outweigh its social costs.

Purpose and scope

Sections 4-6 provide for a participatory assessment before the government proceeds with acquisition. The study goes beyond landowners to examine effects on affected families and the wider community.

• It assesses the proposed public purpose, the number of affected families and the families likely to be displaced.
• It examines whether the land proposed is the minimum necessary and whether acquisition at an alternative location has been considered.
• It studies effects on livelihoods, community property, public services and infrastructure, and weighs social costs against project benefits.

Study, consultation and disclosure

The appropriate government must conduct the study in consultation with the relevant Panchayat, Municipality or Municipal Corporation. The assessment must be completed within six months of its commencement.

• A public hearing must be held in the affected area, with adequate publicity, so that affected families can express their views; these views must be recorded in the SIA report.
• A Social Impact Management Plan must identify measures to address the assessed impacts.
• The SIA report and management plan must be made available in the local language to the relevant local bodies and designated government offices, and published on the appropriate government's website.

Appraisal and acquisition decision

Under Section 7, an independent multidisciplinary Expert Group appraises the report and makes its recommendation within two months of its constitution.

• The group must recommend abandoning the project if it finds no public purpose or finds that social costs and adverse impacts outweigh potential benefits.
• Under Section 8, the government must examine public purpose, the balance of benefits and social costs, minimum land requirements and options that minimise displacement.

Exemption and distinction from EIA

Under Section 9, the government may exempt an acquisition from SIA when invoking the urgency provisions under Section 40. SIA focuses on people and communities; it does not replace an Environmental Impact Assessment where that assessment is required.