Debate on the right rehabilitation policy for those displaced by dams has been on for years. Folklore has it that the only fair and proper compensation lies in rehabilitation on the land. How did this theory develop?

Multipurpose river valley projects, like Bhakra, Hirakud and the Damodar Valley Corporation were the mainstay of the early five-year plans. In an era of development and political innocence, displaced persons were given cash compensation on the basis of the most recent land sale nearby. The money was paid and, more often than not, simple villagers, especially tribals, unaccustomed to big money, would be inveigled into running through it on liquor and high living within a few years without any semblance of rehabilitation. Invariably, by the time these projects were commissioned, the