Anumber of factors affect agricultural productivity. These factors include inequality in land distribution, cropping pattern, irrigation, etc. This paper specifically deals with one particular factor, i e, state intervention and its impact on productivity. The Indian economy has undertaken a large number of development projects – in irrigation and power; industries; mining; forest and wildlife – after launching the planned development programmes in 1950-51 [Mishra 2002a]. Most of the development projects have been set up in rural areas and on the lands owned by the rural people. Rural people are accustomed to a very simple lifestyle and are attached to customs and traditions. The uprooting of millions of people to new unknown places is a matter that is now becoming increasingly contentious. Such displacement results in profound socio-economic and cultural disruption to the people affected as well as the disturbance of social fabric of local communities [Cernea 1988]. And the displacement, rehabilitation and resettlement are not by choice but mostly by compulsion. Displacement is nothing but a disaster in slow motion [Raja 2002].
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