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. Debates on this how to be done led to the introduction of Permanent settlement in 1793. The aim of the settlement was to ensure a regular flow of revenue for the company.

The main features of the Permanent Settlement were:

(i) The rajas and taluqdars were recognized as zamindars. The Company set a fixed amount to pay for the peasant and these Zamidars were asked to collect rent from the peasants and pay revenue to the Company.

(ii) It encouraged the zamindars to invest in improving the land.

(iii) Since the revenue demand of the state would not be increased the zamindar would benefit from increased production from the land.

(iv) If any of them failed to fulfill these conditions, he was ousted from his land and the government did not hesitate in putting his zamindari to auction.