Exploring Alternatives to Land Acquisition

Group 4Abhilash Bhat PGP/18/121Abhishek Diwekar PGP/18/137Neha Kharat PGP/18/143Nilotpal Chakma PGP/18/152Tanvee Garg PGP/18/171Vineela Bavineni PGP/18/337

Agenda

AIM

• Definition and criticism• Land Acquisition• Land Pooling

Case Studi

es

• Magarpatta• Gujarat

Conclusio

ns

• Key success factors• Learnings

Questions

• How can problems due to land acquisition be dealt?

• How can triple bottom-line sustainability be achieved in land acquisitions?

Land Acquisition

What

• Acquisition of property for public purpose• Property Rights• How individuals can control, benefit from and transfer property

Why

• Increasing population – Rapid growth – Urbanization• Development – Agrarian – Manufacturing/Service

How

• Land Acquisition Act, 1894• Land Acquisition Rehabilitation and Resettlement Act, 2013• Land Acquisition Rehabilitation and Resettlement Bill, 2015

Land Acquisition - Drawbacks

Converts ecosystem people to ecological refugees• Unfair Compensation and forced acquisitions• Rehabilitation and resettlement – economic unsustainability

– inter generation• Loss of ownership• Social Cost – loss of social surroundings

High transaction cost• Cost of transferring land from Farmer to government• Cost of transferring land from government to relevant entity• Compensation to farmers

Lack of transparency

So….Land Pooling and consolidation

schemes

Land Pooling/ Consolidation – Win-Win situation

What

• Land Parcels pooled into single entity

Why

• Triple Bottom line sustainability can be achieved• No social cost• Reduced transaction cost - No problem of compensation

How

• Through cooperative public participation

The Case of Magarpatta

Pune in 1990’s

Situation in 1990

• Economic Reforms• Growing population from 18 lakhs in

1980s to 25 lakhs in 1990s

Lead To

• Stress on urban infrastructure• Requirement of more

commercial/residential land

Government action

• Land Acquisition in outskirts of Pune• Magarpatta area identified as Future

Urbanized zone

In this Scenario…..what action did Magar clan take????

Land Pooling

• Land pooling of 430 Acres from 120 farmersHow were the 120 farmers united?• Words of Satish Magar, a local elite– “Everyone knew each other for a couple of centuries”

• Trust was already existing– Family’s good education and exposure to outside world

• People were easily convinced– Richest family with maximum land holdings

Land Pooling… But what next???

Created Magarpatta City(MTDCCL)

Issues faced• Finances– Initially no institution agreed– Magar leveraged relation with Deepak Parekh, HDFC

• Government clearances– Magar leveraged his political connections

• Developing business model– Leverages his connections

How do you make a sustainable model???

Creating economic sustainability…• Farmers made shareholders in Magarpatta Co.– Given shares proportional to their land

holding

Sources of revenue

Sales

Plots Constructions

Rent

SEZ Film shooting

What about livelihood of the farmers???

Creating economic sustainability

“Psychology of owner”• Supervision team appointed for entrepreneurship

training– To match skill requirements professional training provided

at• Institutes in Pune; construction sites

• Second generation land owner – entrepreneurs running subsidiaries of MTDCCL

Is economic sustainability enough???

Creating social sustainability

Magar Clan• Equitable and inclusive• From ecosystem to biosphere people• No displacement and the clan is united

Township• Neighborhood concept• Creating homogenous societies• No Undergraduate educational institutes

What about environment???

Creating environmental sustainability• “Walk to work”• In house solid waste management• Rain water harvesting• Solar water heating system• Sewage water treatment plants• Preserving top soil layer• 30% of land reserved for greenery

Creates positive externalities

Land Pooling-Gujarat

• First Example of land pooling :• Jamalpur Area, Ahmedabad, Gujarat

• Bombay Town Planning Act 1915 was implemented in 1925• Provided for Town Planning Schemes(TPS)

• 1954 : Amended Bombay Town Planning Legislation

• 1976:New Act in Gujarat (GTPUD)Act, having more provisions

• 1995, 1999 & 2001 : Amendments in GTPUD Act

Salient features of TPS

• It is a Land Readjustment form

• Allows for expanding the urban infrastructure while avoiding the hassle of land acquisition

• Cost-effective, participatory and equitable land development scheme

• 1126 TPS in process(‘00 – ’10) ; 600 more in the next 5 years

Govt. pools the land(100%)

Uses 25-50% for roads, open space, other

public purposes

Keeps 5-10% for sale

Returns the remaining 50-75%

to the original owners

• Ahmedabad’s entire Ring road ( 76 km long, 60 m wide) was implemented through TPS

• Over 10000 hectares in Ahmedabad developed using TPS • TPS played a major role in the redevelopment of Bhuj after

the 2001 earthquake

Uses Of The TPS Mechanism

Factors behind success

• Planned for the future• Transparency in all activities• Customer centric development

- Satish Magar

A good leader

Learning's that can be adapted

Magar’s suggestion for compensating the land holders• Certain amount paid as compensation immediately• Certain amount to be paid as shares• Opportunity to work

– Make them part of mainstream economy

The model cannot be implemented as it is but can be adopted

Land pooling solves many problems associated with land acquisition

References

• http://www.cppr.in/wp-content/uploads/2012/10/Exploring-alternatives-to-land-acquisition-with-no-detail-Final-1-1.pdf

• http://www.iimb.ernet.in/research/sites/default/files/WP%20No.%20384.pdf

• http://www.iicdelhi.nic.in/ContentAttachments/Publications/DiaryFiles/163615September192011_IIC%20Occasional%20Publication%2031.pdf

• http://208.253.36.146/events09/Frank%20Schnidman%20Program%20Materials2.pdf

• https://www.youtube.com/watch?v=lR06INrpqKo

• http://shodhganga.inflibnet.ac.in/bitstream/10603/34876/10/10_chapter%203.pdf

• http://www.softbridge-s.com/images/View%20our%20Magarpatta%20City%20campus.pdf

• http://www.rediff.com/money/2007/jan/11bspec.htm

• 15 Minutes of telephonic interview with Satish Magar

THANK YOU