EVALUATING THE EFFICACY OF LAND ACQUISITION, REHABILITATION, AND RESETTLEMENT POLICIES IN COAL MINING: A CASE STUDY OF MAHANADI COALFIELDS LIMITED (MCL), ODISHA

Abstract

Background: Land acquisition for coal mining in India, particularly in resource-rich states like Odisha, has long been contested due to its adverse impact on local communities. Despite the progressive framework of the 2013 LARR Act, implementation challenges persist in ensuring fair compensation and effective rehabilitation for displaced populations.
Objective: This study aims to evaluate the socio-economic impact of land acquisition and rehabilitation measures on displaced households in Odisha, focusing on Mahanadi Coalfields Limited (MCL), and to assess the effectiveness of the LARR framework in practice.
Methodology: A descriptive-analytical design was employed, using data from 200 purposively selected displaced households. A structured questionnaire captured responses on compensation, livelihood restoration, and well-being. SPSS was used for descriptive and regression analysis, while Structural Equation Modeling (SEM) was conducted via SmartPLS to explore interrelationships among key constructs.
Results: Regression analysis showed a significant relationship between perceived land acquisition impact and income reduction (R² = 0.198, p < 0.001). SEM findings confirmed that perceived rehabilitation transparency positively affects both compensation satisfaction and livelihood restoration, which in turn significantly enhance socio-economic well-being (β = 0.51**, β = 0.45**). All hypothesized relationships were statistically significant.
Conclusion: The study confirms that transparent and participatory rehabilitation processes are central to mitigating the negative impacts of displacement. While the LARR Act provides a legal foundation, its effectiveness depends on consistent enforcement, administrative accountability, and genuine community engagement.