The new government at the Centre is expected to address the unfinished reform agenda to free up the land market that has a crucial bearing on the $1.4 trillion infrastructure-led push for faster economic growth. In its first term, the NDA regime sought to amend the previous UPA regime’s Land Acquisition, Rehabilitation and Resettlement legislation through an ordinance but did not succeed due to a political backlash. A functioning land market is imperative as India is becoming less of an agrarian economy due to the accelerating shift in population from the villages to the towns. This process of modern development, however, is far from peaceful or orderly. It is, in fact, highly conflict-prone as land acquisition for setting up factories, dams and highways are being contested by villagers, including tribals, who believe their land is being acquired—mostly by the Indian State—for a song. Land acquisition was an important factor behind a big-ticket FDI steel project in Odisha being shelved seven years ago. This has also bedeviled the bullet train project between Ahmedabad and Mumbai, dedicated freight and industrial corridors and smart city projects. The upshot is that land acquisition remains a contested terrain.

Revisiting land reform post-elections entails changes in land use policies for urban, forest and agricultural land to ensure that infrastructure creation is not impacted by acquisition problems. The incoming government may pick low-hanging fruits like completing the Digital Land Records Modernization Programme and Bhu-Aadhar or Unique Land Parcel Identification Number to make it easier for bank lending for projects where land is the collateral as well as bringing down land disputes.

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India needs to shift from presumptive titling to a conclusive titling system providing guaranteed titles that cannot be challenged in court” Ajit Pai, strategy lead partner, government and public sector, EY India told FE. It bears mention that 1.3% of GDP is lost due to projects being stalled thanks to litigation involving land disputes. Substantial progress has already been made under DILRMP: 95% of record of rights completed in the villages, 68% of cadastral maps have been digitised, 95% of the computerisation of registration and 87 % of the integration of sub-registrar offices with land records is over.

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While the easier reforms can be implemented, there is also a need for better price discovery to aid acquisition as the price of agricultural landa is indeed elusive in contrast to a well-functioning high-end market in metropolitan India. The challenge at the village-level is that transactions are unrecorded, perhaps reflecting distress sales that tell us a lot more about the raging agrarian crisis and the differentiation that is taking place among the peasantry than about the agricultural land market. Towards this end, the initiative of IIM-Ahmedabad in collaboration with digital agri-land market place SFarmsIndia to evolve an agri land price index deserves to be scaled up nationally. This is the beginning of the process to free up the market by removing uncertainties in agricultural land valuation. The index acts as a reliable source for benchmarking land prices and helps in potential conversion of agricultural land into real estate or for industrial use. Some of the factors identified for determining the agricultural land price include irrigation facilities, distance to nearest town or airport and proximity to international airport. This index also facilitates the adoption of scientific measures for providing compensation for land acquisition.

The new government at the Centre is expected to address the unfinished reform agenda to free up the land market that has a crucial bearing on the $1.4 trillion infrastructure-led push for faster economic growth. In its first term, the NDA regime sought to amend the previous UPA regime’s Land Acquisition, Rehabilitation and Resettlement legislation through an ordinance but did not succeed due to a political backlash. A functioning land market is imperative as India is becoming less of an agrarian economy due to the accelerating shift in population from the villages to the towns. This process of modern development, however, is far from peaceful or orderly. It is, in fact, highly conflict-prone as land acquisition for setting up factories, dams and highways are being contested by villagers, including tribals, who believe their land is being acquired—mostly by the Indian State—for a song. Land acquisition was an important factor behind a big-ticket FDI steel project in Odisha being shelved seven years ago. This has also bedeviled the bullet train project between Ahmedabad and Mumbai, dedicated freight and industrial corridors and smart city projects. The upshot is that land acquisition remains a contested terrain.

Revisiting land reform post-elections entails changes in land use policies for urban, forest and agricultural land to ensure that infrastructure creation is not impacted by acquisition problems. The incoming government may pick low-hanging fruits like completing the Digital Land Records Modernization Programme and Bhu-Aadhar or Unique Land Parcel Identification Number to make it easier for bank lending for projects where land is the collateral as well as bringing down land disputes.

India needs to shift from presumptive titling to a conclusive titling system providing guaranteed titles that cannot be challenged in court” Ajit Pai, strategy lead partner, government and public sector, EY India told FE. It bears mention that 1.3% of GDP is lost due to projects being stalled thanks to litigation involving land disputes. Substantial progress has already been made under DILRMP: 95% of record of rights completed in the villages, 68% of cadastral maps have been digitised, 95% of the computerisation of registration and 87 % of the integration of sub-registrar offices with land records is over.

While the easier reforms can be implemented, there is also a need for better price discovery to aid acquisition as the price of agricultural landa is indeed elusive in contrast to a well-functioning high-end market in metropolitan India. The challenge at the village-level is that transactions are unrecorded, perhaps reflecting distress sales that tell us a lot more about the raging agrarian crisis and the differentiation that is taking place among the peasantry than about the agricultural land market. Towards this end, the initiative of IIM-Ahmedabad in collaboration with digital agri-land market place SFarmsIndia to evolve an agri land price index deserves to be scaled up nationally. This is the beginning of the process to free up the market by removing uncertainties in agricultural land valuation. The index acts as a reliable source for benchmarking land prices and helps in potential conversion of agricultural land into real estate or for industrial use. Some of the factors identified for determining the agricultural land price include irrigation facilities, distance to nearest town or airport and proximity to international airport. This index also facilitates the adoption of scientific measures for providing compensation for land acquisition.

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Fast-tracking land reforms: After the national elections, the new central government may pick low-hanging fruits

11 1
26.03.2024

The new government at the Centre is expected to address the unfinished reform agenda to free up the land market that has a crucial bearing on the $1.4 trillion infrastructure-led push for faster economic growth. In its first term, the NDA regime sought to amend the previous UPA regime’s Land Acquisition, Rehabilitation and Resettlement legislation through an ordinance but did not succeed due to a political backlash. A functioning land market is imperative as India is becoming less of an agrarian economy due to the accelerating shift in population from the villages to the towns. This process of modern development, however, is far from peaceful or orderly. It is, in fact, highly conflict-prone as land acquisition for setting up factories, dams and highways are being contested by villagers, including tribals, who believe their land is being acquired—mostly by the Indian State—for a song. Land acquisition was an important factor behind a big-ticket FDI steel project in Odisha being shelved seven years ago. This has also bedeviled the bullet train project between Ahmedabad and Mumbai, dedicated freight and industrial corridors and smart city projects. The upshot is that land acquisition remains a contested terrain.

Revisiting land reform post-elections entails changes in land use policies for urban, forest and agricultural land to ensure that infrastructure creation is not impacted by acquisition problems. The incoming government may pick low-hanging fruits like completing the Digital Land Records Modernization Programme and Bhu-Aadhar or Unique Land Parcel Identification Number to make it easier for bank lending for projects where land is the collateral as well as bringing down land disputes.

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India needs to shift from presumptive titling to a conclusive titling system providing guaranteed titles that cannot be........

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