Mining, Land and Displacement

Why mining in tribal regions has displaced many Adivasis, how compensation and resettlement have often fallen short, and how District Mineral Foundations aim to share benefits.

Many of India’s minerals lie beneath tribal lands.

Displacement

Estimates suggest that tens of millions of Indians were displaced by development projects since independence, with Adivasis forming a disproportionately large share, often cited at around 40 percent.

Problems with resettlement

Inadequate compensation, especially for those without land titles.
Loss of forests and livelihoods not easily replaced by cash.
Poor resettlement colonies.
Cultural loss.

Land acquisition law

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 raised compensation and required social impact assessments and consent for some projects.

District Mineral Foundations

Since 2015, mining companies pay contributions to District Mineral Foundations (DMFs) to fund development in mining-affected areas. DMFs have collected large sums, but spending has often favoured infrastructure in towns over affected villages.

Resource curse

Mineral wealth without local benefit can fuel conflict, including the Maoist insurgency in parts of central India.

The displaced farmer

A tribal farmer loses his land to a mine and receives cash compensation. Without farming skills for other jobs, the money runs out within a few years.

Thinking compensation fully replaces lost land

Lost forests, livelihoods and community often aren't replaced by cash.

Key takeaways

Adivasis are disproportionately displaced by projects.
Resettlement has often fallen short.
The 2013 land law raised compensation and required assessments.
DMFs collect mining funds, but spending often misses affected villages.