In order to get a stable revenue income, most of the East India Company’s officials
believed that investment in land had to be encouraged and agriculture had to be
improved. This led to introduction of permanent settlement in 1793
→ By the terms of the settlement the rajas and taluqdars were recognized as
zamindars.
→ They were asked to collect rent from the peasants and pay revenue to the
company.
→ The amount to be paid was fixed permanently.
→ It was felt that this would ensure a regular flow of revenue into the company’s
coffers and at the same time encourages the zamindars to invest is improving the
land.
→ If the zamindars failed to pay the revenue, which they usually did as the fixed
revenue was very high, they lost their zamindari.