Land Pooling to be adopted for developing new AP capital
Acquiring land is a pressing issue that the Andhra government has to address immediately as it embarks on the process of developing its new capital. It had earlier decided on developing the new capital along the Vijayawada-Guntur stretch, with large parcels of government land available in the Vijayawada–Guntur–Tenali– Mangalgiri (VGTM) region.
But, considering that the government would require about one lakh acres of land to develop the new capital, relying entirely on available government land would not be feasible. Hence, it is considering options like land pooling to acquire the requisite land needed. The government is planning to formulate a new land pooling policy which will enable it to acquire land required within six months.
Impact on Realty market
The land pooling policy is expected to have a major impact on the realty market in the region. The government is expected to enforce stringent measures to see that no land transactions are undertaken in areas which are proposed for land pooling. Consequentially, property prices are expected to increase exponentially in areas in the vicinity. The government initiative in developing land acquired through the land pooling process will go a long way in enhancing the realty market in surrounding areas. Developers are likely to acquire land in the vicinity so as to embark on residential projects at the opportune time. Investors in such land are expected to get healthy returns in future with their value expected to increase many-fold in future.
Effectiveness of Land Pooling
The Andhra government is in favour of acquiring land through the land pooling method, considering its effectiveness it the development of other capital cities like Gandhinagar and Raipur. Moreover, it is felt to be more effective compared to other options like land acquisition and price negotiations with land owners. The government plans to develop the new capital in four phases within each phase requiring about 25,000 acres each for developing various government establishments as well as other infrastructure facilities. However, for farmers not willing to part with their land under the land pooling policy, the government will acquire their land by paying them about four times the existing market value.
As per the new land pooling policy, the government will acquire land from farmers. However, instead of being compensated for the land acquired, the farmers from whom land was acquired would be given a share of the developed land. Considering that this would be more beneficial for farmers, the government plans to create awareness among farmers in this regard. Following development of land under land pooling, the government plans to return about 40 per cent to the developed land back to its owners. Besides, the government also plans to offer about Rs 15,000 to 25,000 for every acre of land acquired for 5-10 years, to farmers whose land has been acquired.
