TN Land Consolidation Act: Water Privatization Analysis
TN Land Consolidation Act: Water Privatization Analysis
By
SRI PRIYA DHARSHINI M
[Link].B.(HONS)
V Year C Section
HA20128
Mr. S. Srinivasan
1
DECLARATION
ABSTRACT
The term "privatisation" is derived from the Latin word "Privatus," referring to transferring
water service ownership and operations from the public to the private sector. Services
affected include revenue collection, metering, billing, and maintenance. The UN recognises
“water as a fundamental human right”. India’s water privatisation efforts were bolstered by
reforms from global financial organisations like the World Bank and the Asian Development
Bank. - The “2002 National Water Policy” advocated private sector participation to enhance
efficiency, accountability, and management. Water privatisation continues to spark debates,
as its promises of efficiency and investment often conflict with issues of affordability, equity,
and sustainability.
Section 10 under The Tamil Nadu Land Consolidation (special purpose) Act, 2023 ensures a
structured approach to handling requests from landowners affected by natural events
impacting waterways. But this section seems to have sparked an outrage amidst the farmers,
agricultural activists and environmental activists. Section 4 deals with the process for
handling applications for Special projects under the Act.
The act was introduced to streamline land consolidation for large-scale projects and protect
water bodies and it claims to overcome inefficiencies caused by fragmented laws and
executive orders regarding land use. Farmers fear that the vague definition of "special
projects" could allow land acquisition for controversial developments (e.g., Parandur Airport,
SIPCOT estates). Environmental Activists Critique the Act’s insufficient safeguards for water
bodies, including canals and catchment areas, crucial for aquifer and ecosystem health. The
Act may undermine safeguards established by the Land Acquisition Act of 2013, including
fair compensation and rehabilitation provisions.
While the Tamil Nadu Land Consolidation Act of 2023 ostensibly aims to streamline land
consolidation for major projects and protect water bodies, its provisions and implementation
1
have drawn significant criticism. Concerns about potential misuse, ecological impact, and
lack of stakeholder consultation highlight the need for a balanced approach that prioritises
sustainability, transparency, and fairness. Stakeholders urge amendments to ensure the Act
aligns with existing laws, global commitments, and public welfare.
INTRODUCTION
The Latin term "Privatus" is where the word "privatisation" originates. Water services
privatisation refers to the handing over of ownership, assets, or operations from the public
sector to the private sector. This covers services including revenue collection, metering, bill
collecting, and water service operation and maintenance.
Even the United Nations (UN) has acknowledged the need for water as a fundamental human
right. The 2006 UN World Water Report states that "there is enough water for everyone" and
that "water insufficiency is often due to mismanagement, corruption, lack of appropriate
institutions, bureaucratic inertia and a shortage of investment in both human capacity and
physical infrastructure" .
But it is economic processes that cause all resources, including water, to change from a public
good to a commodity that can be traded. Concerns about water shortage and the necessity of
effectively managing water by assigning a monetary value serve as the foundation for the
movement for privatisation.
Opponents of the public water supply said that the state was inefficient and made a case for a
change to market-based water administration. Nevertheless, renowned environmentalist
Vandana Shiva claims that "when private companies try to make large profits through high
water prices, it denies the poor the inalienable right to the most necessary substance for life."
Nonetheless, there is a push to privatise water utilities everywhere.
2
Myths about privatisation1:
The idea of privatisation is linked to a number of myths, the most well-known of which
being: Money is saved by privatisation.
• Businesses in the private sector perform better than those in the governmental sector.
• Increased service quality and cheaper costs are two benefits of privatisation.
• The performance and efficiency of public utilities significantly improve when they
are privatised.
• Minimal regulation must coexist with privatisation.
• Governmental organisations can more accurately predict and manage their
budgetary expenses thanks to privatisation.
Governmental organisations now have greater administrative flexibility thanks to
privatisation.
• The government still has the final say over issues pertaining to public policy, but the
public still has influence over a privatised good or service.
• Businesses are selected for privatisation contracts on the basis of their qualifications, not on
the basis of financial or political ties; in the event that something goes wrong, the government
may quickly fire the contractor or modify the contract.
The term "water privatisation" describes the process by which the public sector gives way to
the private sector for ownership of water resources. Since 1990, the government has
promoted private sector initiatives in the water sector through legislative changes, with the
expectation that giving private enterprises more control over water resources will increase
accountability and transparency.
The year 2000 marked the acceleration of the privatisation drive in India's water industry, as
the government implemented a number of reforms recommended by global financial
1
Privatisation, available at: [Link] (last visited on march ,
2024)
3
organisations such as the Asian Development Bank and the World Bank.
The government implemented the National Water Policy into effect in 20022.
The policy states that "wherever possible, private sector participation should be encouraged
in the planning, development, and management of water resources projects for diverse use."
Participation from the private sector may aid in the introduction of creative concepts, the
creation of financial resources, the introduction of corporate management, and the
enhancement of user accountability and service efficiency. Different combinations of
private sector involvement in the construction, ownership, operation, leasing, and transfer of
water resource facilities may be taken into consideration, depending on the particular
circumstances.
Businessman B.R. Shetty, located in Abu Dhabi, was granted permission by the Karnataka
government in August 2016 to privatise the famous Jog Falls with the goal of turning it into
a year-round waterfall and a popular tourist destination. According to the newspaper article3,
Shetty will contribute Rs 450 crore to the project and charge guests a "minimum" amount.
The practice of privatising natural water bodies is not new in the nation; 17 years ago,
Madhya Pradesh (now Chhattisgarh) established the precedent by selling the rights to the
about 23.5-kilometer-long Shivnath River to a private business called Radius Water Limited
(RWL).
Not only does RWL work in the water sector, but so do many other private companies in
India, including Veolia Water India Limited (VWIL), Jamshedpur Utilities and Services
Company Limited (JUSCO), Vishwa Infrastructure Limited (VIL), MSK Projects India
Limited (MIL), Orange City Water Private Limited (OCWL), and others. State governments
and Urban Local Bodies (ULBs) encourage private parties to enter the water and sanitation
2
National water policy, available at : [Link] (last
visited on march 1, 2024)
3
Government allows making Jog a perennial fall, available at:
[Link]
fall/articleshow/[Link], (last visited on march 1, 2024)
4
sector by providing them with opportunities such as the Jawaharlal Nehru National Urban
Renewal Mission (JNNURM) and the Urban Infrastructure Development Scheme for Small
and Medium Towns (UIDSSMT) through Public Private Partnerships (PPPs).
This is unexpected given that the government made a grave mistake when it privatised the
Shivnath River. The privatisation of river water was justified by the government's inability to
provide the businesses with enough water, but in reality, things didn't turn out that way. As a
matter of fact, the arrangement caused the government to suffer enormous financial losses in
addition to negatively impacting the livelihoods of thousands of people living along the river,
where RWL fenced off the water supply to the villagers.
IMPACT OF PRIVATISATION
People opposed privatisation of water utilities all across the world because it would
negatively affect the impoverished. In 1998, Sydney's water became tainted with elevated
levels of giardia and cryptosporidium, following its replacement by Suez Lyonnaise des
Eaux. This occurred in Australia. Water and sewer bills in Britain rose by 67% between 1989
and 1995. The number of persons having their services disconnected increased by 177%. In
England, water rates rose by 450 percent, but business profits surged by 692 percent. The
private companies responsible for the water delivery saw a staggering 708 percent increase in
CEO remuneration.
The expected result of such high price fixing is a 50% rise in service disconnection.
Dysentery grew six-fold, prompting the British Medical Association to denounce water
privatisation for its detrimental consequences on public health. In France, water prices
increased by 150 percent following privatisation, yet the quality of the water decreased.
Following the water privatisation dispute in Cochabamba, Bolivia in 2000, anti-privatization
protests began to gain traction. The World Bank's recommended privatisation model is
beginning to backfire in numerous nations, including Buenos Aires, Tucumán, Dar es
Salaam, Metro Manila, Nkonkobe, South Africa, Atlanta, USA, and Grenoble, France. This
has resulted in thousands of people in South Africa being disconnected from the water supply
because they are unable to pay. Commentators fear that this has affected the health of the
nation’s people and decreased social equality further.
5
The case of Cochabamba and El Alto in Bolivia
The most well-known example of the struggle over Bolivia's municipal water supply utility's
privatisation (to Bechtel, a US-based corporation) at the World Bank's request is
Cochabamba, the scene of the now-famous "water wars." Due to the fact that many people
had to physically pick between food and water, a people's uprising against the concession
occurred in 2003.
Suez received a number of benefits in El Alto, such as soft loans and an assured rate of return,
but connection fees were sharply increased. When Suez, a water behemoth, acquired Aguas
del Illimani (AISA), a subsidiary, the monthly water price went from $100 to $20 in a city
where the minimum wage is less than $100. The government was forced to revoke its water
privatization legislation soon after people protested.
decisions; and
de-politicization of tariffs;
steep increases in
tariffs Retrenchment,
elimination of subsidies,
6
dismantling of public/community supplies like stand posts and public taps, allocation
of water to highest value use through market mechanisms, introduction of water
entitlements to ensure markets of tradable water rights, and
MODES OF PRIVATISATION
Water supply and sanitation (WSS) privatisation can take many different forms and occur at
different levels. It could include parts of the dam, canal system, water treatment facility,
water distribution system, billing system, and wastewater and sewage collection, treatment,
and disposal.
• Service Contracts: These are brief agreements for the provision of certain services, such
as bill preparation and metre reading.
• Lease/Management Contract: The municipal authority retains ownership of the water
facility, and either leases the facility to the firm or appoints the corporation to administer
it. The corporation is responsible for managing day-to-day activities, while the municipal
authority makes new investments and expands.
• Build Own Operate Transfer (BOOT) Contracts: The corporation constructs a portion
of the infrastructure (treatment plant, filtration plant, etc.) and operates it under a long-term
contract with a purchase agreement that has "take-or-pay" guarantee terms. This is known as
a "Build Own Operate Transfer" (BOOT) contract. • Concessions: These are long-term
agreements in which a private business maintains complete control over the system, renders
services, and is in charge of growth, additional investments, bill recovery, etc.
• Divestures: In this instance, the government sells all or part of its ownership stake in a
utility, which is then acquired by a private business.
7
The Tamil Nadu Land Consolidation (For Special Projects) Act, 2023:
(1) In cases where a river, stream or other waterway changes its course due to natural events
and passes through a land owned by any person, the owner of the land, may make an
application in the form and manner prescribed to the Collector, seeking grant of land at the
disposal of the Government in exchange of the land owned by him.
(2) The Collector shall, on verification of the revenue records and after causing a
topographical survey, if there exists a prima facie case for proceeding in the matter, send a
report along with the application, to the Government.
(3) On receipt of the report from the Collector, the Government shall constitute an Expert
committee consisting of members as specified in sub-section (2) of section 4, to examine the
request of the applicant and make a recommendation to the Government within a period of
sixty days therefrom.
(4) The Government shall thereafter pass appropriate final orders based on
the recommendation of the Expert committee.
The above section deals with the impact of land ownership in case of change of course of a
river, stream, or waterway. The above section can be broken down as follows:
1. Application to the Collector: If a river, stream, or waterway changes its course and passes
through land owned by an individual, that individual can apply to the Collector (presumably a
government official responsible for revenue collection and land administration) for a grant of
land owned by the government in exchange for the land affected by the change in the
waterway.
2. Verification and Survey: The Collector will verify the revenue records and conduct a
topographical survey to assess the situation. If there appears to be a valid case for proceeding,
the Collector will send a report along with the application to the government.
4
The Tamil Nadu Land Consolidation (for Special Projects) Act, 2023, Act No. 23 of 2023, s.10
8
3. Constitution of an Expert Committee: Upon receipt of the report from the Collector, the
government will constitute an Expert Committee. This committee will consist of members
as specified in the relevant section of the law. The purpose of the committee is to examine
the request made by the applicant and make a recommendation to the government within
sixty days.
4. Recommendation and Final Orders: The Expert Committee will review the request and
make recommendations to the government based on their examination. After receiving
the recommendations, the government will pass appropriate final orders.
This process ensures a structured approach to handling requests from landowners affected by
natural events impacting waterways. It involves verification, assessment by experts, and
government decision-making to address the situation. But this section seems to have sparked
an outrage amidst the farmers, agricultural activists and environmental activists.
(2) As soon as may be, on notification of the Special project, the Government shall
constitute an Expert committee consisting of five members, namely:—
(ii) Joint Director, Animal Husbandry and Veterinary Services, having jurisdiction over
the project land-Member;
5
The Tamil Nadu Land Consolidation (for Special Projects) Act, 2023, Act No. 23 of 2023, s.4
9
(iv) an eminent academic in the field of civil engineering, hydrology, ecology, environment,
or allied subjects, nominated by the Government- Member; and
(v) District Revenue Officer, who shall act as the convenor of the committee.
S.4 deals with the process for handling applications for Special projects under the Act:
1. Application Submission: When an application is received under section 3 of the Act, the
Government assesses it based on prescribed factors and conditions. If satisfied that the project
will be significant for the State, the Government may notify the project as a Special project
under the Act. The application is then forwarded to the Collector of the district where the
project is to be implemented.
The Expert Committee is responsible for providing expertise and guidance throughout the
project evaluation and implementation process. This process ensures that projects identified
as Special receive thorough assessment and oversight by experts from relevant fields, aiming
to address ecological and water management concerns effectively while contributing to the
state's development objectives.
10
BACKGROUND OF THE ACT6
According to the bill, project sponsors that need more than 100 hectares of land can apply to
the government to have the necessary land consolidated. District collectors may receive
notification from the government designating them as special projects.
For the purpose of publishing the plan and holding public hearings, expert committees will be
established. After that, collectors submit a report to the government with the opinions they
have received, requesting that the project be "approved" or "approved with conditions." The
act's requirement to purchase land for the special project even when water bodies run through
it is the point of disagreement.
The statements from various experts and stakeholders shed light on different aspects of the
bill and its implications:
1. Concerns raised by Shantha Sheela Nair: Nair, a former bureaucrat, draws attention to the
bill's lack of discussion on important topics including the Town and Country Planning Act,
agricultural legislation, and the Tamil Nadu Pollution Control Board's (TNPCB)
involvement in land consolidation. She stresses how critical it is to solve pollution issues,
particularly those that are close to water bodies because they are frequently impacted by
industrial developments.
2. The Viewpoint of Justice R Chandru: Judge R Chandru, a retired member of the Madras
High Court, believes the bill is a reaction to the growing number of cases involving
environmental law infractions. He implies that by supporting international projects, maybe at
the expense of environmental considerations, the government is trying to allay judicial
complaints.
6
In the law of land, water loses, available at: [Link]
of- the-land-water-loses/articleshow/[Link], (last visited on march 1, 2024)
11
3. Farmers' Opposition: The Tamil Nadu Cauvery Farmers Protection Association's
Swamimalai Vimalanathan attacks the government for introducing the law without first
engaging the farmers. He demands that it be withdrawn, expressing the discontent of farming
communities.
4. Kurian Joseph's Assessment: Kurian Joseph, the head of Anna University's Centre for
Climate Change and Disaster Management, notes that the bill has good intentions when it
comes to project screening and assessment. He does, however, voice concerns about the
impartiality of the evaluations made by multidisciplinary expert committees and makes the
case for it.
5. The viewpoint of the Water Resources Department: A representative from the Department
of Water Resources voiced his displeasure at the department not being included in the
measure. Despite being a member of the expert committee, the superintendent engineer's little
involvement in protecting water bodies raises concerns.
Overall, the statements reflect a range of perspectives on the bill, highlighting concerns about
environmental protection, farmer consultation, procedural fairness, and the roles of different
government departments in the decision-making process.
12
THE ACT WAS HASTILY PASSED
The passage of the Act has raised concerns, particularly regarding the manner in which it
was hurriedly passed. Reports indicate that the Act was approved through a voice vote,
without allowing opposition parties in the Assembly sufficient time to review and provide
comments on the draft beforehand.
Samy Natarajan, AIKS Secretary in Tamil Nadu, emphasized the importance of introducing
land-related laws in a proper manner, with adequate opportunities for discussion, rather
than rushing the process.
At a public event in Chennai, Rt. Justice D Hariparanthaman7 expressed his views, likening
the swift passing of laws by the Tamil Nadu government to the approach of the central BJP
government. He criticized the passing of laws such as the 12-hour workday and the land
consolidation acts without considering the opinions of opposition parties, stating that such
actions are against the interests of the people.
Justice Hariparanthaman further suggested that the purpose behind these laws becomes
evident with Tamil Nadu Chief Minister Stalin's invitation to international companies to
establish businesses in the state. He implied that these laws may facilitate the exploitation of
labour and the acquisition of land by corporations in Tamil Nadu.
FARMERS VIEWPOINT
Farmers are expressing apprehension over the vague definition of "special projects" outlined
in the recently enacted Act. This legislation grants the state the authority to designate any
project as special, raising concerns that land belonging to ordinary farmers could be acquired
for a variety of ongoing projects, including the Parandur Airport, SIPCOT Industrial Estate
and Textile Park, and Neyveli coalmine.
7
TN: “Repeal Land Consolidation Act” urges AIKS, farmers worried about losing land, available at:
[Link]
visited on March 19, 2024)
13
P Shanmugam, as cited in an article published in Theekkathir8, highlighted the opposition
from environmentalists, farmers, and villagers against the acquisition of land for the proposed
Parandur airport, particularly noting the presence of 13 lakes in the area overflowing with
water. Shanmugam suggests that the Tamil Nadu government has enacted this law to facilitate
the arbitrary acquisition of land while maintaining the appearance of legality. This suggests a
potential exploitation of legal loopholes to acquire land for controversial projects while
ostensibly following due process.
"There are numerous laws in existence to regulate land acquisition. In that environment
bringing up an Act like this indicates that the government will steal the land of poor
and small-scale farmers without any limits in the name of development."
8
TN: “Repeal Land Consolidation Act” urges AIKS, farmers worried about losing land, available at:
[Link]
visited on March 19, 2024)
14
CONCLUSION
The concerns raised by farmers and activists regarding the potential impacts of the Land
Consolidation Act of 2023 are significant. Existing laws, including the Land Acquisition Act
of 2013, were implemented to ensure protection, fair compensation, and rehabilitation for
landowners. However, there are fears that the new Act may undermine these protections and
exacerbate issues related to water bodies, encroachments, and ecological concerns.
One major worry is the potential encroachment on water bodies by private individuals, which
could lead to depleted water levels and adversely affect agriculture. Despite the Act's
purported aim to protect water bodies, there is criticism that it fails to safeguard canals,
drains, and catchment areas, which are crucial for maintaining water levels and ecological
balance. The absence of such provisions could exacerbate the loss of aquifers over time.
Furthermore, activists point out that the state government's disregard for global agreements,
such as the pledge made during the UN Biodiversity Conference to declare 30% of the
world's land as protected areas by 2030, is troubling. Encroachments on thousands of lakes,
ponds, and waterways across Tamil Nadu hinder the capacity of water bodies to store excess
monsoon rains, exacerbating water scarcity issues.
Despite the existence of numerous laws for land acquisition, including those specific to
certain purposes like industrial development and highway construction, the necessity for
introducing a new consolidation law is questioned by Kisan activists. Drawing parallels
between the Land Consolidation Act of 2023 and the oppressive Land Acquisition Act of
1894, which granted excessive power to rulers, raise concerns about the potential
exploitation of landowners' rights. Moreover, there are apprehensions that the Act could lead
to the erosion of public space if the state takes over areas traditionally managed by local and
municipal bodies, potentially depriving communities of land for public events and people-led
initiatives. Under the provisions of the Land Consolidation Act of 2023, the state government
is granted broad authority to consolidate and acquire land across various departments, raising
concerns about the potential misuse of power and its implications for landowners,
communities, and public spaces.
15
REFERENCES
Bibliography :
The Tamil Nadu Land Consolidation (for Special Projects) Act, 2023
Webliography :
[Link]
[Link]
[Link]
perennial-fall/articleshow/[Link]
[Link]
loses/articleshow/[Link]
[Link]
worried-about-losing-land
16
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factors and conditions. If satis ed that the project will be signi cant for the
State, the Government may notify the project as a Special project under
the Act. The application is then forwarded to the Collector of the district
Once a project is
measure in the assembly, stating that its goals are to safeguard these
sponsors that need more than 100 hectares of land can apply to the
special projects. For the purpose of publishing the plan and holding public
act's requirement to purchase land for the special project even when water
ACT,2023 ABSTRACT The term "privatisation" is derived from the Latin word
from the public to the private sector. Services affected include revenue
debates, as its promises of ef ciency and investment often con ict with
applications for Special projects under the Act. The act was introduced to
laws and executive orders regarding land use. Farmers fear that the vague
water bodies, including canals and catchment areas, crucial for aquifer
and protect water bodies, its provisions and implementation have drawn
Stakeholders urge amendments to ensure the Act aligns with existing laws,
Page 1 of
Jan 30, 2025
the private sector for ownership of water resources. Since 1990, the
IN INDIA Businessman
Shetty will contribute Rs 450 crore to the project and charge guests
bodies is not new in the nation; 17 years ago, Madhya Pradesh (now
called Radius Water Limited (RWL). Not only does RWL work in the
Urban
Page 1 of
Jan 30, 2025
acquisition of land for the proposed Parandur airport, particularly noting the
suggests that the Tamil Nadu government has enacted this law to facilitate
environment bringing up an Act like this indicates that the government will
steal the land of poor and small-scale farmers without any limits in the
2023 are signi cant. Existing laws, including the Land Acquisition Act of 2013,
rehabilitation for landowners. However, there are fears that the new Act
Despite the Act's purported aim to protect water bodies, there is criticism
that it fails to safeguard canals, drains, and catchment areas, which are crucial
for maintaining water levels and ecological balance. The absence of such
activists point out that the state government's disregard for global
is troubling.
Tamil Nadu hinder the capacity of water bodies to store excess monsoon