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This paper discusses the issue of indigenous development, displacement, rehabilitation and resettlement policies, and the implementation strategy of Gujarat State, India. This study is based on an anthropological approach, conducted among the indigenous communities displaced by the Narmada Project. These groups are traditionally shifting cultivators and famously known as “tribal” or “Adivasi” in the government records. This paper also focuses on the issue of indigenous displacement and land alienation due to the construction of massive Narmada Dam project, without proper rehabilitation and resettlement (R&R), although there are well defined guidelines, norms and procedures for the rehabilitation of displaced people.