Any green field project or a brown field project taking place on land taken from the landowners cause people to be displaced from their land & homes & in also their livelihood in the process. The displacement causes major unrest & instability in any project in case things does not take peacefully & amicably.
The disturbance can become a critical issue & the project may be stalled forever. It causes huge loss to the company not only financially but leads to loss of investment or project finance from the investor, brand image, confidence of stakeholders, loss of business & on top of all may give rise to legal complications.
It thus becomes inevitable for the companies to adhere to all the national policies & legal requirements for resettlement & rehabilitation, prepare a resettlement & rehabilitation plan, compensate the project displaced people as per the entitled matrix, implement & monitor the plan, establish the grievance mechanism procedures & engagement strategy.