Indian Economy

Land pooling is a land acquisition strategy wherein a single agency or government body consolidates small land parcels into a large parcel, provides it with infrastructure, and returns a sizable land portion of redeveloped land to the original owners after deducting some portion as cost of infrastructure development. Presently, Pradesh. ant Presently, this scheme is in execution in Delhi and Andhra

Benefits of Land Pooling:

• For landowners:
  • They benefit from the increase in land value, as the value of the land retained increases substantially compared to his original holding.
  • They get access to substantially better infrastructure such as roads, hospitals, schools, water, etc.
  • It would lead to the conversion of irregular parcels into plots of regular sizes and shapes, which would be appropriate for further development.
  • The strategy to not displace original landowners would retain the traditional sense of belonging for the landowners.
• For the government:
  • Under this approach, the government does not have to pay any initial outlay to acquire the land.
  • The approach would face relatively less resistance from landowners, as it treats them as investors in the development projects.
  • It fast-tracks the traditional land acquisition process while addressing the associated social concerns.
  • Increased property prices lead to a higher tax base for the government.
• Increase of public-private cooperation and trust: The land pooling strategy ensures a three-way win for the private players to put their skills to use, the government to facilitate the development, and ultimately the land owners who benefit from the development.
  • Since it involves the participation of the landowners, the diversion of land for another use is prevented.

Associated challenges in this context are:

• Whether proper consent for land pooling has been given by landowners is debatable, with the speed needed for development often pressuring agencies to make land pooling compulsory.
• More needs to be done to ensure that compensation and resettlement provisions extend to tenant farmers and agricultural laborers, as compensatory packages are often insufficient for the landless. Also, capital value appreciation may take time.
• Inconsistencies in land pooling and its associated legal framework complicate the acquisition process. Moreover, it is difficult to apply for land pooling in congested urban areas.
• Restarting farming on the reconstituted plots incurs high costs, as new farm equipment must be bought.

Given the pressing need for development in India, land acquisition by the states has persistently been a key issue. Many flagship urban development projects have been delayed owing to issues with land acquisition. Moreover, the mechanism created under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement (RFCTLARR) Act, 2013 further adds complications such as social impact survey, higher rates of compensation, caps on acquisition of multi-crop and agricultural land, mandatory consent of landowners as well as consent of the Gram Sabhas in the Scheduled Areas. These need to be addressed to ensure the success of the land pooling scheme.