More power to landown­ers

Haryana aims to solve land ac­qui­si­tion chal­lenge in­no­va­tively through trans­fer­able de­vel­op­ment rights, which will also em­power landown­ers

HT Estates - - NEWS - Van­dana Ram­nani

With land ac­qui­si­tion now be­comi ng a time- con­sum­ing and an ex­pen­sive af­fair ( com­pen­sa­tion that is al­most four times the mar­ket price of land has to be paid for ru­ral ar­eas and two times for ur­ban l and), t he Haryana gover nment has now found an in­no­va­tive way to ad­dress the chal­lenge. Last week, it launched the new in­te­grated li­cens­ing pol­icy ( NILP) 2015, which seeks to bal­ance the as­pi­ra­tions of farm­ers, prop­erty buy­ers, real es­tate de­vel­op­ers and the gov­ern­ment. Under the pol­icy, the min­i­mum size of a town­ship has been re­duced from the ear­lier 100 acres to 25 acres and the in­ter­na­tional model of trans­fer­able de­vel­op­ment rights (TDR), al­ready in place in Ma­ha­ras­tra, Tamil Nadu and Kar­nataka, has been in­tro­duced.

Under this pol­icy the gov­ern­ment might not have to com­pul­so­rily ac­quire land. Through the TDR mech­a­nism it seeks to en­able small landown­ers to vol­un­tar­ily mon­e­tise their land by par­tic­i­pat­ing in the process of li­cens­ing, real es­tate de­vel­op­ment and marketing and sale of their TDR. In­stead of a fixed com­pen­sa­tion for land ac­qui­si­tion, farm­ers will get TDR cer- tifi­cates which they can sell like stocks in the share mar­ket.

Farm­ers with land hold­ings of less than 25 acres will be able to ob­tain a TDR cer­tifi­cate from the gov­ern­ment and mon­e­tise their land hold­ings at cur­rent mar­ket prices in res­i­den­tial ar­eas and for sites des­ig­nated for ex­ter­nal de­vel­op­ment works such as sec­tor roads, col­leges, hos­pi­tals, fire sta­tions, open spa­ces and green belts etc.

Each farmer will be al­lowed to sell the TDR cer­tifi­cate equiv­a­lent to 1 floor area ra­tio (FAR) of his land at mar­ket rates and not end up fil­ing cases in courts claim­ing more com­pen­sa­tion as per mar­ket rates.

Relaxing norms for builders, the pol­icy now al­lows real es­tate de­vel­op­ers to con­struct projects on land mea­sur­ing less than 100 acres. Also, builders can ac­quire land di­rectly from the farm­ers and give it back to the gov­ern­ment in ex­change of a TDR cer­tifi­cate which will get them ad­di­tional FAR that can be loaded on to their ex­ist­ing pro­ject in the same zone. They can also sell the cer­tifi­cate to an­other developer in the same zone. This will en­sure that work on ba­sic in­fra­struc­ture such as roads, pipe­lines etc con­tin­ues with­out get­ting mired in land ac­qui­si­tion issues, say ex­perts.

This con­cept has re­cently been in­tro­duced for procur­ing land fall­ing within the align- ment of in­ter­nal 18- 24 me­tre wide roads to en­able con­nec­tiv­ity with the wide sec­tor roads and to make in­fra­struc­ture pro­vi­sion for spe­cific colonies lo­cated within the sec­tors.

While realty ex­perts have said that this pol­icy is a “game changer” and much bet­ter thought out than Delhi’s land pool­ing pol­icy, they add that its suc­cess will ul­ti­mately de­pend on how well it is ex­e­cuted. “Ul­ti­mately, all de­pends on ex­e­cu­tion, how the pol­icy fi­nally gets rolled out – that will de­fine its suc­cess in the fu­ture. How much TDR can you buy? What is the process of ap­proval? How much time will it take to get ap­provals? All of it has to be thought out. This is only a state­ment of in­tent, a pol­icy doc­u­ment. The modal­i­ties will take some time to come through. This will pave the way for longterm ma­tu­rity of the mar­ket. So far there is ar­ti­fi­cial scarcity and pricing in the mar­ket, ar­bi­trage in land val­ues will go away or at least come down,” says Anckur Sri­vast­tava of Gen Real Ad­vis­ers.

The in­tent of this pol­icy is to over­come the chal­lenges of land ac­qui­si­tion with the onus to ac­quire land now rest­ing on the developer. “Naredco wel­comes this well thought out move. It will open up in­fra­struc­ture de­vel­op­ment with­out the gov­ern­ment hav­ing to put in huge

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