Impact of Delhi’s updated land pooling policy
The notification of the lieutenant governor of Delhi of 89 rural villages in urban areas has once again highlighted the land policy of Delhi land, which accumulated dust for almost two years. The Delhi Development Authority (DDA) had approved the policy during the last week of July 2013 and was then notified by the Union’s Ministry of Urban Development in September of that year. The operating rules were also approved by the ministry in May of 2015.
The dispute between the Delhi government and the PDD over certain amendments to the Sierra’s political article goes nowhere, while unscrupulous elements have announced plans and raise money from naive shoppers with the promise of a home in Delhi.
The policy in its concept is still a new idea, since it aims to solve the problems facing the nodal body in the acquisition of land in the main city, due to the weakness of the land and the increase in compensation due to increase Of the soil assessment.
The DDA has created two categories for pooling the land – over 20 hectares and the second for land between 2 and 20 hectares.
Improved land cover by 40 percent as part of this policy, compared to the existing 33 percent, is to promote private sector participation with land consolidation and development being the domain of private actors, while the PDD assumes A more important role of a facilitator.
Landowners would receive between 48 and 60 percent of the land combined for PDD development purposes instead of compensation, and they could use these developed lands in the way they want. The DDA will use the remaining part of the land combined to create the associated infrastructure, as well as for the semi public and public.
This policy is likely to lead to residential development projects in the main city, which has a housing deficit and where most housing needs are met by the DDA. This policy is likely to result in increased private participation in housing development throughout the city.
The latest modifications of the policy by the Ministry in 2015 are:
1. If the development delay of the DDA combined, a fine will be paid to the owners / farmers to 2% of the external development expenses (EDC) for the first two years and 3% for the subsequent period in case Of delay beyond the completion of the five-year project, according to the most recent date.
2. If farmers / landowners can not afford the EDC, they can give up most of the land with respect to the PDD, and in this case they will get 35 percent of the land for their use.
3. Development companies must necessarily build houses for the EWS (economically weaker), which represent 15% of the FAR well beyond what is allowed.
4. transparent system to prioritize returnable land allocation based on a computerized monthly pooling system.
5. Full use of the FAR is intended for residential purposes.
It is estimated that the policy will unlock around 20 000 to 25 000 hectares of land through Delhi, especially in towns and cities small cities on the outskirts of the city. Such development is likely to lead to good availability of residential units, which will also help control residential prices.