DDA and the Delhi government has come up with an idea to solve Delhi’s land problem. This idea is in correspondence to the extravagant development which the city has seen in the last few decades due to which the population has risen from 60 lac to 1.7 crore resulting in ashortage of land for 20 lac people which would grow up to be 80 by 2021.
DDA has shortly introduced a Land Pooling Policy to accentuate development. This policy counters various problems. The coming 80 lac population would require an estimated land area of 50-60 K acre. Land Pooling Policy not only provides a way to achieve it, but it also ends the landowners’ concerns of less transparency and unfair compensation which was due to direct acquisitions of land. To maintain an efficient public-private partnership which would help in enhancing urban infrastructure development in Delhi, the government has decided to interfere as little as possible with keeping an eye on the functioning of this policy.
The Land Pooling Policy is expected to bring 40 K acre of land for the use. This is a tremendous news for the cities on the outskirts of Delhi like Narela, Najafgarh and Bawana as themajority of these lands would be falling under them. It goes without saying that such large-scale development would make Delhi a hot property market in the entire Delhi-NCR region. Adding to the good news, developers have already acquired half of these lands and are preparing for a massive development. To facilitate this real estate and urban infrastructure with a combined effort of funding, political will and reforms, the government has approved INR90,000 crore to make sure that this long-term plan reaches its goal.
Delhi Land Reform Act
The problem which the government may face to bring land pooling policy is that they might have to amend the Land Reform Acts of 1954. In that act, it is stated that no agricultural land should be used for the purpose of housing or welfare. This act is challenged by the fact that land pooling policy advocates housing in place of agriculture land. Thus, the government may seek an amendment. The supporting fact about the act is that it was made post-independence when food shortage was frequent. Then, it was a matter to seek basic need of food and shelter. But now things have changed. India has become one of the fastest growing economies of the world. It has changed many dimensions since that act. Globalization is now the face of India. Thus, in actual and fair sense, land pooling policy will get an easy and comfortable nod from the government with a minor amendment in the act.
Land Pooling Policy has been the core model for all the developed countries. If there is one thing common in these developed countries, it is the efficiency of land use that they have done. They have recognized the value of land quite early than the countries of Asia. The concept of land pooling is a very basic one at the ground level. The core of this policy was used in the development of such countries. If we look at the history of any developed country, for example, in the US, we see that after its independence, the expansion of the country was based at a very productive level. Proper structuring and mapping of land were done in order to make a country convenient for future use as well. The name may have been different but the concept is same. Even today, cities like London, New York and Tokyo are using the same planning for its expansion. Although, India has vast population but uneven distribution of resources and its use is a big fact. States like Gujarat and economic hubs of Maharashtra are already using the land pooling policy. Now, with Delhi getting into the thick of actions, India is soon expected to reach the status of a developed country as judicious use of land is one of the prime aspects to make a country advanced.
View of Delhi Government
Delhi government has always been in support of Land Pooling Policy as the policy provides a solution in almost every department. It came together with DDA to bring the policy in September 2013. Even though NDMC (New Delhi Municipal Corporation) is comprised of other party members, the Delhi government has been able to conduct the whole process quite smoothly with minor bumps. In 2015, the government brought the Gram Sabha villages under its revenue department which was a step ahead in land pooling as a village have to be urbanized. This year, a good progress has been witnessed as the Delhi government proactively asked Central Government for 10-15% of pooled land to make room for new infrastructure. In the most recent development, Chief Minister of Delhi, Mr. Arvind Kejriwal highlighted the policy in his video conference TALK TO AK saying that the policy is very good and the government is already looking forward to implement it. The important thing which has happened in Delhi land pooling policy is that it is away from all the political cold war which has enabled it to work dedicatedly in this area.
What People Think
The reason of recent development in land pooling policy has been partially due to people’s coordinative effort. Survey of the city is not required as the stats of investment in these zones shows a clear picture of the overwhelming support people are giving to the policy. Builders have already invested over Rs 30,000 crores with positive feedback from the end-use buyers as well as the investors. Land pooling policy is providing a relief from escalated prices of houses as it holds affordable houses as its major motive. It is also the solution for people moving away from Delhi in places like Noida, Gurgaon and Greater Noida to afford a home. Thus, there is a lot of support for this policy among the people. In fact, the policy offers a great scope for future in Delhi which is making people from other states to move here comfortably.
The expert view on land pooling policy is largely been good. They have acknowledged the long-term scope of this policy as the population will have an increase of about 80 lakhs people. The large scale development of houses will be seen as an opportunity for the people. The real estate experts have said that real estate, in general, will be uplifted with the arrival of the policy. The market is quite dull now as due to the increase in defaults by the builders and agents, transforming government policies and negative buyer sentiments. Land pooling will give a big boost to the buyers which will cause an inflow of cash in the realty market. The experts are also wary of the fact that the benefits of this policy can only be taken if it is applied in an efficient way. Since everybody is welcoming this strategy brought by DDA, be it developers, government or people, the critics and experts have given a thumbs up to it. Also, the nature of the policy is such that it is difficult to pinpoint a fault in it.
With clear benefits to every sector, land pooling policy is the need of the hour. Implantation of this policy will take Delhi and ultimately India to a new era. Being an integral part of Master Plan Delhi 2021, the policy will make sure that future needs and aspirations are met with full vigor. The transformative government policies have made sure that the impact of this policy is felt in broader terms. After the cruel post independent history of Indian farmers, the benefits of land pooling policy is what they should get. The policy is right and fair to everyone in every respect.
Question: What is Land pooling policy?
One can find detailed information on DDA website but to put it simple land pooling is a system of developing infrastructure for residences and other public amenities in which public people can submit their lands above 2 hectares to DDA for development. DDA keeps some of the lands and returns the rest of the land to the public/private parties for them to build residential apartments.
For land above 2 hectares and below 20 hectares, DDA will return 40% of land to holders and the rest becomes the property of DDA
For land above 20 hectares, DDA will return 60% of the land to the holder and develop the rest to the holder.
The scheme is a result of India’s vision to create 100 self-sufficient smart cities
The scheme aims at providing affordable housing to people and covers the huge gap between demand and supply
Question: Has the bill been passed?
Yes, the bill has been passed but it is not operative yet. Certain guidelines have to emerge and this might take time before it becomes operative. Only when it becomes operative will DDA ask for land submissions, till then no one can say that they have submitted their land, or claim that this is the plot where they will build their project etc.
Question: Will I get the land back at the same place I own presently?
A large number of players have acquired the land and will be submitting their Land to DDA. DDA will pool their contributions and consolidate them into large chunks.
From these large chunks, it will keep a share for itself towards development costs and develop amenities.
Your area might be the one that DDA decides to keep for itself, in which case you will get some other area (40% or 60% of area submitted as explained before).
So the possibility of you getting 40% or 60% of land in the area you have submitted is unlikely. However, DDA will allot a land within 5 km radius of your land holding, according to the scheme. So factually when you submit the land you will get a portion of it within 5 km of that holding, in any direction.
Question: Should I buy property under Delhi’s Land Pooling policy?
As per Mr.Balvinder Kumar, vice chairman, Delhi Development Authority (DDA), “The land pooling policy has already been notified on 05.09.2013 and regulations for executing the policy has been finalized for consideration and approval by the government of India. Simultaneously, the government of NCT, Delhi has already approved one-stage stamp duty exemption. The process for the declaration of development area and declaration of 95 villages falling in these zones as ‘urban’ is under process.” But what does it mean? Land Pooling is a concept that where small chunks of land are owned by a group of owners who assemble for the development of infrastructure as per the provisions of the Delhi Development Act 1957.
After the development of the land, the Land Pooling agency redistributed the land after deducting some portion as compensation towards infrastructure costs. This is done to develop and bring out the potential of housing and infrastructure to reduce the load on the existing congested and saturated areas, like core parts of Delhi.
Questions: What is in for the buyers?
While land owners offering between 2 and 20 hectares of land for development will receive at least 40 percent of their land back, and those who are giving away 20 hectares of his/her land would get 60 percent of their pooled land back once the development is completed. The remaining land would become DDA’s property and will come under the Master Plan 2021.
Delhi is the capital of the largest democracy in the world, and is the focus of socio-economic and political life of India. It is also a symbol of ancient times and will soon be one of the leading cities of the Indian economy. The city is a prime mover and nerves center of ideas, culture, education, sports and actions.
Once there was nothing here. Now look how minarets camouflage the sunset.
Ruled by some of the most powerful emperors, the history of Delhi dates back to the time of Mahabharata. Earlier known as Indraprastha, Delhi has been witness to the political turmoil over five centuries. The capital city has witnessed potential growth in the last few years. With modernization, urbanization, progress and development, the population of the city has increased ten-fold in six decades.
Government of India Urbanization Plan
Prime Minister, Narendra Modi sees urbanization as an opportunity. He aspires to develop the whole nation and equip every home with smart features. The Plan involves creating 100 smart cities. The mission will follow five steps. Pan India, which means each home, will be connected through a smart feature, retrofitting, green field, and redevelopment. DDA Urbanizatizon PlanThe Delhi Development Of Authority has to urbanize 20,000 hectares of land under MPD 2021. The urbanization plan involves creation of new spaces, redevelopment of low developed areas. A total of 89 villages will be urbanized under DDA Urbanization Plan. The plan will provide shelter to five million people.
Delhi Master Plan 2021
The present population of Delhi is 1.7 crore, of which the present infrastructure accommodates only 1.5 crore people. By the end of the year 2021, the population is expected to rise up to 2.5 crore people. The big challenge which awaits for DDA is to provide homage to existing deficit and to accommodate 80 lakh more people by the end of the year 2021. MPD-2021 focuses on creating the required infrastructure which includes healthcare, sanitation, roads, sewerage, shelter and learning institutes, and accomplishing the mission ‘Housing for all by 2022’.
EWS refers to the economically weaker section of the society. The vision of MPD-2021 is to make Delhi globally a metropolis city. To turn the vision into a reality, MPD-2021 will create affordable housing scheme for EWS.
The flats built by DDA, particularly those, which have become aged, may be redeveloped with permission and subject to the condition that the structural safety of other flats is not impinged. Already developed group housing inclusive of public (DDA and others), co-operative housing may be redeveloped on the basis of prescribed norms and regulations by formulating co-operative societies or self-managing communities. The funds for redevelopment should be contributed by the residents.
Farm houses have been renamed ‘low density residential areas’. LDRA’s can now be built on once acre of land at an easy cost 2-5crores. LDRA’S will be developed on areas where the water level has eroded and land no longer can support huge populations. The new LDRP policy has made it possible for people to have their own farmhouse in Delhi.
The vision is to enhance the economy activity in the national capital through clean, hi-technology and skilled activities. The industrial policy under MPD-2021 will be based on infrastructure development, decongestion, promoting walk to work, simplifying business and sustainability.
The MPD-2021 lay a special emphasis on developing public and semi-public services like proper sanitation, solid waste management, water points etc. Promotion of ITES will be recorded through up gradation of IT sector.
A better transportation infrastructure will be created through unified metro transport authority, synergy between landuse and transport, introducing cycle tracks, pedestrian and disabled friendly features in arterial and sub-arterial roads.
A new parking policy including private sector development of parking facilities, increase in norms for parking space, multi-level parking and under-ground parking.
Under MPD-2021, developers need to provide smart amenities to people which includes uninterrupted water and power supply, waste water management system, proper drainage, recreational parks, club houses, sports court and should offer easy connectivity to hospital, shopping centers and learning institutes.
The Plan stipulates that the land up to the depth of one peripheral village revenue boundary along the border of NCTD, wherever available, would be maintained as Green Belt. Considering the constant pressure on the rural land, new motels shall not be permitted in the green belt. However, existing village abadis, regularized unauthorized colonies and approved motels may continue in the green belt.
FAR (Floor Area Ratio)
As per DDA's first DRAFT notification of Land Pooling Policy, a FAR of 400 was notified. However, as per the latest development in DDA, there may be a reduction in FAR, meaning bulit-up area per acre would come down. If implemented, affordability factor would go away from land pooling policy zones. To know more about its implication, please call us.
Land Acquisition Bill
Land acquisition in India refers to the process by which the union or a state government in India acquires private land for the purpose of industrialisation, development of infrastructural facilities or urbanisation of the private land, and provides compensation to the affected land owners and their rehabilitation and …
Land Pooling Policy
To turn the vision of MPD-2021 into a reality, around 14,00,000-15,00,000 new housing units need to be created. DDA since its inception has created only 4.5 lakh housing units. The land pooling policy is a policy proposed by DDA. Under LPP, land owners can come together with their chunks of land. The small parcel of land can be developed as per the infrastructure needs. Once the development takes place, 40-60% of land is returned to the land owners.
Participatory of All-a new way
DDA alone cannot generate land as per the needs of MPD-2021. The need of the hour is to encourage public private partnership. Under LPP government will give the parcels of land to private developers for development, which in turn will boost the public-private partnership. Also, it will give farmers a chance to engage in the development process.
End of Land Acquisition Policy- One of the most significant factor why LPP is necessary is because it would end the decades old land acquisition system. What this will do is prevent the ever increasing price of lands due to acquisition policy. The transparency is far below standard and the compensations are unfair to the farmers.
Freedom to Public- Private sector– DDA would only work as a caretaker/facilitator to this policy that would give the public private sector a chance to boom its relationship and hence enhance the development. No interference would give the private sectors ample freedom to develop infra within the rules set by the law.
Development in NCR-There is a 10 fold increase in population of Delhi in the past half century, which has increased the use of land. Due to its expansion Delhi needs to sort out a plan to make use of its neighbouring villages’ land. These land of villages like Dwarka, Narela, Bawana etc would get a standard way of development.
No “leap-frog” development- Use of LPP would cut out the rise of unauthorized housing sectors which has taken its roots vastly in Delhi. Since the inception of these, the government has to unwillingly regularise these societies. Further, because of its unplanned nature, many problems arise within the city while making progress in transportation projects such as Metros and Urban Extension Roads and many other infrastructures. Ample Employment Opportunities-During the tenure of the development of LPP, it would provide a home to more than 10 million households. This would vastly increase employment opportunities for every class of people who are related to the construction sector. It would help in the economic boom as well since there are many chances the foreign investments would be playing a key role in providing infra.
Whole Delhi has been divided into 15 zones. The policy has the potential to generate 20,000-25,000 hectares of land. LPP would further propel the mission of making Delhi a smart city.
MPD-2021: Master Plan Delhi 2021
LPP: Land Pooling Policy
EWS: Economically Weaker Sections
DDA: Delhi Development Authority
LDRA: Low Density Residential Areas
Real estate industry in India is witnessing a big change. The traditional and unorganized way of property dealings is now taking a back seat with strict policies such as RERA (Real Estate Regulatory Authority) coming into the picture? Thus, the whole property business is going through a change and it is pioneered by Delhi Smart Cities. Our team consists of vibrant and motivated people looking to offer smart and profitable opportunities in real estate to people. We aim to cover all areas of India while revolutionizing the whole market. We understand that government and developer entities are doing their best to put our homeland into the top countries in the world. Delhi Smart Cities get fruitful coordination from the major builders of the country and its team has done a tremendous research work behind government initiatives such as Land Pooling Policy (LPP), MPD Master Plan Delhi 2021 (MPD 2021), Smart City Mission (109 smart cities) and Pan India Development.