Tamil Nadu mulls policy to make land owners partners in growth 

Land pooling, a more equitable scheme where landowners would become partners in the joint venture development, was announced in 2012-13.

CHENNAI: Five years after announcing a land pooling policy and preparing a draft amendment, the Tamil Nadu government is now looking at alternative models wherein land can be sourced for development of industrial, transport or other infrastructure projects.

It is learnt that a committee of experts from housing and urban development, highways and industries departments are giving final touches on the new land pooling guidelines formulated by the State government.

After studying Gujarat, Andhra Pradesh, Haryana and Delhi models of land pooling, the government is looking at implementing the scheme either through a government agency or through a trust model or by a corporate special purpose vehicle model.

Land pooling, a more equitable scheme where landowners would become partners in the joint venture development, was announced in 2012-13 based on Justice Mohan committee recommendations.
Touted as ‘Land Pooling Area Development Scheme’, the scheme was to be implemented through an amendment to Town and Country Planning Act by which land would be taken away from landowners for development after which a share of the developed land is allotted to original landowners.

Since the new Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Amendment) Act (RFCTLARR), 2013, was introduced by the Centre, the State has been delaying the implementation of the scheme although a draft policy is ready.
Official sources say that the main objective of a proposed amendment to land pooling policy has been to facilitate easy availability of land for urban planning and creation of urban infrastructure with land owners as partners and not losers.

But, officials opine that the proposed policy does not address the problem faced in sourcing land for development of industrial or transport or any other infrastructure required for economic development.
Sources say that land pooling modalities for industrial or urban development projects may differ from projects like highways, waterways, railways or irrigation canals. For industries, only a portion of land is required for infrastructure while the entire land gets utilised  for projects like highways and waterways.
As such, the gestation period of projects after which the benefits of development of land accrue to landowners may differ in different type of projects.

For acquisition of land for highways, waterways or railways and canals, the land pooled will be five times of actual project land requirement which could be anywhere up to a length of 400 to 500 metre on either side of the proposed road. After deducting the project land, 80 per cent of land will be distributed in the ratio of 70:30 ratio to landowners and government.

Under this mechanism, land owner gets back, 56 per cent of land and government 44 per cent, which includes 20 per cent for road and 24 per cent for infrastructure. Under this, 24 per cent of arterial roads will be laid perpendicular to main highways planned.

If the 56 per cent of land given back to the land owner does not match with pre-developed land costs, then additional benefits like higher floor space index or free no objection certificate may be given.
“The idea is to have a planned development along the highways and the land returned to landowners will be made into standardised plots like a planned colony,” official sources said.

When & why
Land Pooling Policy was announced in 2012-13
While the draft policy was prepared, it was not implemented
The government felt the earlier policy did not address issues faced in sourcing land for industrial, transport and other infrastructure
The state will be implementing the land pooling policy either through a government agency or through a trust model or a corporate special purpose vehicle
Besides amending the Town and Country Planning Act of 1971, three more State acts  have to be amended for implementing the Act

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