The Ministry of Urban Development has approved land pooling policy in Delhi on 5th September 2013. The policy will bring radical change in the real estate landscape of the national capital. Without the owner’s consent, the nobody would be able to sell the land now. The DDA wanted to procure large tracts of land from the owners back in 1961 under the master plan of Delhi. The procured land was supposed to be developed by the development authority in a phased manner. The government took the responsibility of financing these projects as country didn’t have strong private sector back then.
The land prices started increasing when the economy opened and demand grew for more real estate in the country. The Land acquisition bill 1894 was still being used by the government to acquire the land for various projects. The rehabilitation and compensation provisions in this law were very discriminatory of land owners and buyers as well. The process of getting land is easier now due to land pooling policy. It is beneficial for both private and public projects. Those who wish to sell their land can list down their land in the central pool of the land. One can also be part owner of the proposed project on their land.
40-60 percent of the land given under this policy would be awarded to the landowner again as developable land. This totally removes the undervaluation of the land by buyers and owners become the stakeholders of the project. The land acquired by the DDA will be used to create critical infrastructure and projects. The policy prescribes two types of land pooling as of now.
The first type is where 20 hectare and above area is pooled, 60 percent land would be returned to the land owner. The acquisition smaller than 20 hectares would be have to return 48 percent of the pooled land. Engineering, finance, planning, accounts and land management departments will work together in this process. The GIS technology would be used to ensure accurate flow of the information.
The Delhi Development Act, Land Acquisition Act and Delhi Municipal Corporation Act would be amended for this new policy. The Delhi Development plan would be implemented soon through this new land pooling policy. The plan will accommodate more than 10 million people along with 1.6 million dwelling units. Land pooling policy of DDA has been already approved by the central government which will boost the completion of all important construction projects in the region. The economically weaker sections will be benefited from this policy. The private sector will take lead to develop land in Delhi now.
Floor to area ratio will be increased through this policy. Economically weaker sections will be able to buy housing in these redeveloped units of land as the DDA will reserve 15 percent flats for them. The common man can easily become a developer now as the process has been kept simple. Lower classes of the society would be able to get access to easy housing now. This also gives boost to the concept of smart city.