Correct Option
The correct option is 2 only.
Explanation
The Permanent Settlement, also known as the Zamindari System, was introduced by Lord Cornwallis in 1793. It was primarily implemented in Bengal, Bihar, and Odisha. The system fundamentally altered the land revenue structure and the relationship between the state, the zamindars, and the cultivators.
Statement-wise Analysis
- Statement 1 is Incorrect. The Permanent Settlement did not treat zamindars merely as revenue collectors. Instead, it recognized them as the owners of the land. Their rights were made hereditary and transferable. They retained ownership as long as they paid the fixed revenue to the East India Company. If they failed to pay, their land could be auctioned.
- Statement 2 is Correct. The primary feature of this settlement was that the land revenue demand was fixed in perpetuity. The Company aimed to secure a stable and regular flow of income, which would not fluctuate with harvest conditions, allowing for better financial planning and administration.
- Statement 3 is Incorrect. The rationale behind fixing the revenue was the opposite of what is stated. The Company expected that a fixed demand would encourage zamindars to invest in agriculture. The logic was that since the state would not claim any share of the increased production (surplus), the zamindars would be motivated to improve the land to maximize their own profits.
Key Takeaway
Key Takeaway: The Permanent Settlement (1793) converted zamindars into hereditary landowners with a fixed revenue obligation, based on the economic theory that secure property rights and fixed taxes would incentivize agricultural investment.