The British introduced a new system of collection of revenue in Bengal.Under this system, the East India Company had fixed the revenue that each zamindar had to pay.

Permanent Settlement: Explained in Detail

Permanent settlement, also known as the Permanent Settlement Act of 1793, refers to a land revenue system introduced by the British East India Company in India during the colonial period. This system aimed to establish a fixed revenue rate for landowners, thereby providing them with long-term security and encouraging agricultural development. The Permanent Settlement Act was initially implemented in Bengal, Bihar, and Orissa, and later extended to other parts of the country.

Key Points:
- The Historical Context: The Permanent Settlement Act was introduced by the British East India Company in response to the chaotic and inconsistent revenue collection systems that existed in India under Mughal rule. The Company sought to establish a stable and predictable revenue system to enhance its control and maximize revenue collection.

- Features of the Permanent Settlement: The Permanent Settlement Act introduced several key features, including:

1. Fixing Land Revenue: Under the Permanent Settlement, the land revenue was fixed for each estate or plot of land. The landowners, known as zamindars, were required to pay a fixed annual amount to the British government. This fixed revenue rate was based on the estimated productive capacity of the land.

2. Hereditary Rights: The zamindars who agreed to the fixed revenue rate obtained hereditary rights over their estates. This meant that the revenue demand would not change even if the land's productivity increased or decreased in the future.

3. Transferability: The zamindars had the right to transfer or sell their estates, ensuring that the ownership of land could be passed down through generations or sold to others.

- Impact and Consequences: The Permanent Settlement had both positive and negative impacts on the Indian agrarian system and society:

1. Positive Impact: The system provided zamindars with long-term security, encouraging them to invest in land improvements and agricultural practices. This led to increased agricultural productivity in some areas.

2. Negative Impact: The fixed revenue demands placed a heavy burden on the zamindars, especially during times of drought, floods, or other natural calamities. Additionally, the system led to the concentration of land ownership in the hands of a few wealthy zamindars, resulting in the exploitation of tenant farmers and the growth of rural poverty.

Conclusion:
The Permanent Settlement Act of 1793, introduced by the British East India Company, aimed to establish a stable revenue system in India. While it provided long-term security for landowners, it also had negative consequences, including the concentration of land ownership and the exploitation of tenant farmers. The Permanent Settlement had a lasting impact on India's agrarian system and continues to shape the country's land policies to this day.