THE Jharkhand cabinet on late Wednesday cleared the much-awaited rehabilitation & resettlement (R&R) policy. This paves the way for kicking off a spate of mega steel and power ventures that have been hanging fire for years. A significant feature of the R&R policy is that the investors will have to distribute 1% of the annual net profit of the project among affected families every year. Also, the requiring body (read: investor) will have to spend 1% of their annual net profit for community development. All affected families, whether possessing land or without land, will be provided with a pucca house. Displaced families will be compensated with cash at market rates. The family will have the option to invest half of the sum in shares or debentures. An official of the ArcelorMittal welcomed the state cabinet's decision to announce the state R&R policy. "We are very happy that the state government has announced its policy. This will help us expedite our project. We will fully abide by it,' he said. The policy says the companies acquiring land for the projects will ensure employment in the project to at least one eligible person per nuclear family among those affected families who will be losing land. If additional employment opportunities are available, then priority should be accorded to displaced persons. Wherever necessary, the policy says, the requiring body will arrange for technical/vocational training of the affected persons so as to make them suitable persons to take on suitable jobs preferably in the project. The requiring body will offer scholarship and other skill development opportunities to the eligible persons from the affected families. The policy also envisages that in case of a project involving land acquisition, the affected families who have not been provided employment or who do not want to avail of employment will be entitled to annuity policies that will pay an amount not less that Rs 1,000 per month per acre of land lost for 30 years. The maximum amount from the policy will be Rs 10,000 per month per affected family. In case the requiring body plans to sell the acquired land at a later stage, it will have to give 80% of the sale price to the displaced person. This will be in addition to the other benefits he has got earlier. As per the policy, the requiring body will give preference to the affected persons/groups/cooperatives in the allotment of outsourced contracts, shops or other economic opportunities coming up in or around the project site. ET spoke to a cross-section of mega investors who have been betting their big bucks on Jharkhand. In most cases, the initial reaction seemed to be of relief that the policy had finally been approved by the state cabinet. The policy is expected to take care of a host of uncertainities regarding land acquistion and the rehabilitation package for displaced families. Home grown steel major Tata Steel is planning to set up a 12 million tonne greenfield venture in the state, its second unit after Jamshepur. A Tata Steel spokesperson said: "We are yet to go into the details of the R&R policy wich was approved by the state cabinet. We will be in a position to comment on it only after we study it.' JSW Steel's CEO for Jharkhand R P Singh said: "We have got coal and iron ore but have been waiting for land for our project in the state. We will decide on the package only after studying the R&R policy in depth. Hopefully, the new policy will have a positive impact on the state's industrial scenario.' On July 14, all the mega investors had a meeting with the state government in which they urged the latter to notify the R&R policy as soon as possible. "At the meeting, we told the state government that unless the policy is notified we won't be in a position to have any meaningful dialogue,' a source added. When contacted, an Ispat Industries spokesperson said they are yet to go through the R&R policy. Convenor of Adivasi Moolvasi Astitva Raksha Manch, Dayamani Barla, wondered if the provisions of the policy would be implemented. "The provisions may sound pleasing but if you see the past, you will notice that the displaced have never got their due share in reality,' she said. Ms Barla, however, said she is yet to go through the details of the policy announced by the government. ALL CLEAR 1% of annual profit to be distributed among affected families and another 1% for community development All affected families, landowners or otherwise, will be given pucca house Displaced families will be given jobs, cash compensation at market rate If affected family does not get employment, co will have to pay Rs 1,000- Rs 10,000/month for 30 years Displaced families will have option to invest half of compensation amount in shares or debentures Cos willing to sell acquired land at later state will have to give 80% of sale price to displaced person