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Land Pooling Scheme in India: Benefits and Challenges
Land Pooling Scheme in India: Benefits and Challenges
Learn about the advantages and limitations of Land Pooling Scheme in India towards urban development, including its potential to increase land value, improve infrastructure, and reduce conflict.

Table of Contents

  1. Benefits of Land Pooling
  2. Challenges
  3. Land Pooling in Delhi and Amaravati
  4. Conclusion
  5. Faq's

In a rapidly urbanising India, where land is a precious commodity, the traditional methods of land acquisition have often led to displacement, conflict, and resentment among local communities. However, a glimmer of hope has emerged in the form of land pooling schemes, a revolutionary approach that promises to transform the way we plan and develop our cities.

Land pooling is a unique concept where landowners voluntarily contribute their land parcels to a common pool, which is then developed with modern infrastructure and amenities. Once the development is complete, the landowners receive a portion of the reconstituted land, which is often more valuable than their original holdings. This approach not only empowers landowners but also fosters a sense of community and cooperation

It is currently employed in India for the implementation of master plans of various cities, such as Amaravati city in Andhra Pradesh (AP), Delhi, Dholera smart city in Gujarat, and Magarpatta township in Pune city.

Land pooling scheme allows landowners to combine their land for planned urban development. In India, such schemes were first introduced by the Bombay Town Planning Act of 1915, involving pooling various small land parcels together for urban development. After development, the landowners receive a portion of the developed land with a higher market value. This method avoids forced land acquisition and encourages cooperative development with fair compensation for landowners.

Benefits of Land Pooling

Land Pooling offers several advantages over traditional land acquisition methods:

More Democratic and Voluntary Compared to Land Acquisition

Land pooling schemes are more democratic and voluntary compared to traditional land acquisition method as in this process, landowners are not forced to part with their entire land. Instead, they are invited to participate voluntarily, which reduces the likelihood of conflict and displacement.

This inclusive approach allows landowners to retain ownership and benefit from the development of their land. The process is also more transparent, with clear guidelines and timelines and gives a greater say in the development of their land.

Lower Time and Cost for Land Acquisition

Land pooling schemes are more efficient and cost-effective compared to traditional land acquisition methods. In land pooling, the government does not need to acquire the land, which reduces the time and cost associated with the process.

The government acts as a facilitator, guiding the development of the land and ensuring that it is used for the intended purpose. Further, the government doesnot have to incurrupfront costs. This approach is more cost-effective because it reduces the financial burden on the government and allows it to allocate resources more efficiently. It also reduces the risk of corruption and mismanagement associated with large-scale land acquisition.This approach makes it more efficient by doing away the need for lengthy negotiations and legal battles. It also reduces the financial burden on the government, as it does not need to pay compensation to landowners.

view-land-plot-real-estate-business-development (2).jpgBenefits of Land Pooling

Increase in Value of Land

Land pooling schemes can lead to an increase in the value of land due to changes in land use plans and improvements in public infrastructure. When land is pooled, it is developed with modern amenities and infrastructure, which increases its value. This makes the land more attractive to potential buyers and developers. The method benefits the landowners, who can sell their land at a higher price or use it for their own development projects.

Non-Displacing Strategy

Land pooling schemes are a non-displacing strategy because landowners are not forced to leave their land. In traditional land acquisition methods, landowners are often displaced to make way for infrastructure projects.

In land pooling, landowners are allowed to retain their land and benefit from the development. This approach is more humane as it respects the rights of landowners and does not disrupt their livelihoods. It also reduces the social and economic costs associated with displacement.

Access to Better Infrastructure

Land pooling schemes provide access to better infrastructure upon completion of the project. When land is pooled, it is developed with modern amenities and infrastructure, such as roads, schools, and healthcare facilities.

This improves the quality of life for the residents and makes the area more attractive to potential buyers and developers. This approach not just benefits the landowners but also the residents because it provides them with better living conditions and access to essential services.

Relatively Less Conflict-Ridden Process

Land pooling schemes are relatively less conflict-ridden compared to traditional land acquisition methods. In land pooling, landowners are invited to participate voluntarily, which reduces the likelihood of conflict.

The process is also more transparent, with clear guidelines and timelines for the development of the land. This approach is more peaceful because it reduces the tension and conflict associated with land acquisition. It also promotes a sense of community and cooperation among landowners and residents.

Higher Tax Base

Land pooling schemes can lead to a higher tax base due to the increased value of land and the development of new infrastructure. When land is pooled and developed, it becomes more attractive to potential buyers and developers, which increases its value. This increased value also generates more revenue for the government through taxes. The higher tax base also benefits the government by providing it with more resources to invest in public services and infrastructure. This approach is more beneficial for the government because it increases its revenue and allows it to invest in the development of the community

Also Read: Maha BhuNaksha 2024: Access Land Maps, Obtain Plot Reports & More

Challenges

Despite its benefits, Land Pooling faces several challenges:

The Land Pooling Scheme in India faces several challenges and limitations, including:

  • Difficulty in Implementing in Congested Areas: Land pooling can be challenging to implement in congested metropolitan areas due to the complexity of land ownership and usage.
  • Risk of Land Hoarding: The lack of development incentives can lead to land hoarding, where landowners hold onto their land without developing it, leading to price inflation and reduced availability of land for development.
  • High Profit Margins for Landowners: Critics argue that profit margins for landowners are excessive, raising concerns about fairness and affordability, particularly for low-cost housing schemes.
  • Significant Human Resource Requirements: Implementing land pooling effectively requires extensive manpower, including qualified negotiators and land valuers, which can be a challenge in resource-constrained regions.
  • Lack of Convergence at the State Level: Different states in India have their own regulations for land pooling, making it difficult for businesses to have uniform land policies throughout the nation.
  • Challenges in Public-Private Cooperation: Effective collaboration between public and private entities is crucial for success, but implementation often faces hurdles due to divergent interests and communication gaps.
  • Limited Safeguards for Lower-Income Groups: Ensuring inclusivity and affordability for low-income communities requires targeted incentives and mechanisms within the land pooling framework, which may be lacking in current models.
  • Risk of Unequal Distribution of Benefits: The unequal distribution of benefits among participating landowners can lead to disputes and conflicts.
  • Vulnerability to Market Fluctuations: The value of the developed land received as compensation can be affected by market fluctuations and economic uncertainties.

Land Pooling in Delhi and Amaravati

Delhi's land pooling scheme under DDA, notified in 2013 and reissued with modifications in 2018, has not seen many takers yet. The scheme divides the entire area into 138 sectors, requiring a minimum of 70% contiguous land of the developable area within each sector. However, even though landowners of 36% of the land pooling area have shown willingness to pool their land, the parcels are not connected to each other.

In contrast, land pooling in Amaravati was done by a specific, newly created state entity, the Andhra Pradesh Capital Region Development Authority (APCRDA). The APCRDA and other relevant authorities were highly consultative, providing generous incentives to landowners. The master plan was discussed through a series of consultations, and plot allotments were made through a digital lottery.

Conclusion

The Land Pooling Scheme in India offers a viable alternative to traditional land acquisition methods, providing several benefits such as increased transparency, cost-effectiveness, and inclusivity. However, it also faces challenges related to limited adoption, lack of transparency, and implementation issues. The success of land pooling schemes depends on the active involvement of state agencies, clear communication with landowners, and a robust legal and institutional framework. Despite these challenges, land pooling has been successfully implemented in cities like Amaravati and Magarpatta township, demonstrating its potential to transform urban development in India.

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