The long-awaited DLP or Delhi Land Pooling policy was approved by DDA (Delhi Development Authority) on 7th September, during the meeting held under Delhi Lt. Governor Anil Baijal. It is expected that this policy will go for final approval to the Ministry of Housing & Urban Affairs. Through this new scheme, the Delhi Development Authority will tend to pool the land parcels possessed by builders, individuals or group of owners then create land & return to the owners.
This new system tends to replace the land acquisition process whereas the government acquired land will be provided with fixed compensation. With complaints of forceful acquisition and low compensation, the system will become increasingly unpopular in few years time. Besides that, this new policy is predicted to unlock massive parcels of land for affordable housing and development.
The Land Pooling Policy
Land Pooling Policy indicates the land parcels possessed by a group of individuals or individuals being legally merged by transfer of the ownership rights to LPA which later transfers the land back to the owners by undertaking development activities. In Delhi region, this policy will be tweaked for the sake of simplification process. Landowners are not insisted to transfer their land to Delhi Development Authority rather the plot will remain forever in owner name.
The main aim of this policy is to improve urban development in the Peri-urban areas with optimal utilization of resources & hence construct structures for private and public usage. It is expected that Delhi region will avail 17 lakh new housing which can able to accommodate about 76 lakh people. It offers Affordable Housing for the people of Delhi region and this policy is also predicted to trigger up economic development by creating 1 lakh jobs.
Advantages Offered By New LPP (Land Pooling Policy)
The planned development seems to lie at the center of the new policy proposal. Through this scheme, the smaller land pieces are aggregated into a huge land parcel and above that, necessary infrastructure developments are made such as drainage, sewage system, and water supply. As a result, it aids the planned development for huge infrastructure including markets, metro rail, and road. The land which is developed will be returned duly to the developers or owners and the segment of the land parcel is sold by the government for recovering costs.
Landowners providing land with 2 -20 hectares will get 48% of land back and those who are providing their land more than 20 hectares will obtain 60% of their land back. The FAR (Floor-area-ratio) is considered to be the ratio of land size & area which can be constructed will get decreased from 400 – 200. The landowners will be highly responsible for the internal infrastructure developments including power supply, sector roads, rainwater harvesting mechanisms, and water supply lines.
Impact on Delhi NCR Property Prices
Promoters of Delhi Land Pooling Policy reveal that new system tends to unlock huge parcels of land sustainable for development & housing. This seems to be a vital key for PM Narendra Modi Government that has established a scenario “Housing of All” by the year 2022 in the name of ‘Pradhan Mantri Awas Yojana’. Before 2019 general election, holding faster infrastructure development and land procurement in Delhi NCR region will be considered as the noticeable achievement for voters. However, the state government of Delhi is presently led by means of Aam Aadmi party who is regarded as a new player at Indian politics.
Furthermore, the newly launched LPP scheme comes with a share of critics as well. This scheme tends to unlock the land potential of about 20, 000 to 25,000. Additionally, reduction in FAR has thrown up a spanner in works. Most of the industry watchers reveal that decreasing the FAR ratio limit will damage the objective of increasing land supply and hence decreases property prices.
Overall, Delhi region is outpaced by means of satellite markets Noida and Gurgaon in NCR region with regards to availability of land & property costs.