2010年-世界发展银行全球_Reforming_Supply_of_Policy_Land_in_India___Policy_Note_14页_1mb

Summary of "Reforming Supply of Industrial Land in India: Policy Note"

Core Content

This policy note provides an analysis of the challenges and opportunities in the supply of industrial land in India, focusing on the policy and institutional barriers that hinder private sector land acquisition. It highlights the need for reforms to streamline land acquisition processes, improve land market efficiency, and establish land banks to support industrial development.

Main Issues and Constraints

1. Land Availability and Supply Challenges

• Mismatch between demand and supply: Only about 23% of land in India is suitable for industrial use (non-cultivable or fallow land).
• Fragmented land holdings: Small and marginal landholdings are prevalent, especially in states like Haryana and West Bengal, making it difficult to acquire contiguous land.
• Regulatory and policy restrictions: Land ceiling norms, conversion rules, and high transaction costs (e.g., stamp duties) impede efficient land markets.
• Dysfunctional pricing regime: Lack of standardized valuation methods and transparency leads to disputes over compensation and land prices.
• Weak informational and institutional mechanisms: Limited access to land availability data and fragmented governance structures create inefficiencies.

2. Land Acquisition Process

• Public vs. private acquisition: Historically, the state has been the main actor in land acquisition for industrial purposes, often leading to protests and delays.
• Private acquisition challenges: Fragmentation, unclear land titles, and informal payments make private land acquisition difficult and costly.
• Land acquisition Act (LAA): The 1894 Act, and its 1962 amendment, have been used to justify state-led land acquisition, but recent amendments (e.g., 2007 Bill) have restricted this power, further complicating land supply for industry.

Key Recommendations

1. Streamlining Policy and Institutional Mechanisms

• Amend the definition of "public purpose" in the Land Acquisition (Amendment) Bill, 2007 to include industrial land acquisition, especially for setting up industrial parks.
• Incorporate valuation principles into the LA Act to ensure fair compensation based on the proposed end use of land.
• Legislate for government role in industrial land acquisition by defining eligible projects, land thresholds, and institutional processes.
• Streamline state-level legislations such as Land Reforms Act and Land Ceiling Act through a dedicated committee, removing restrictive provisions.
• Establish institutional frameworks for land acquisition, monitoring, and end-use conversion, ensuring inter-departmental coordination and transparency.

2. Facilitating Development of Industrial Land Markets

• Digitize land records and maps to create an online geographic information system for better transparency and accessibility.
• Develop benchmark land prices using established methodologies to align with market practices and reduce price distortions.
• Align stamp duties with market norms to lower transaction costs.
• Prioritize digitization and benchmarking for industrial clusters to accelerate land market development.

3. Creating Land Banks for Industrial Use

• Formulate central-level guidelines for establishing industrial land banks, to be disseminated to states.
• Identify and categorize land based on market needs, including agricultural land, waste land, forest land, and land from sick industries.
• Develop a transparent and efficient land bank management system with clear terms for land transfer and prioritization based on economic development goals.
• Create a budget framework to cover operational and capital costs, as well as revenues from land bank activities.

Conclusion

The study emphasizes that while some states have made progress in addressing land supply issues, the overall system remains inefficient and politically sensitive. The proposed reforms aim to improve land availability, reduce transaction costs, and enhance transparency in the land acquisition process. The creation of land banks is seen as a strategic move to meet the growing demand for industrial land, especially for large-scale projects. These reforms are expected to be implemented in the short term, with a focus on streamlining policies and improving institutional coordination, while the development of land markets and land banks will require longer-term efforts.