Description

ndian cities are growing rapidly implying the ever-growing need for more and more land which is made available by converting agricultural land on the peripheries of cities into serviced urban land. But in most Indian cities this conversion is not planned in time for proper roads, infrastructure and social amenities, thus creating a chaotic and haphazardly planned environment.

There are mainly two methods of developing agricultural land for urban use: Bulk Land Acquisition and Town Planning Schemes. Most states in India use the method of bulk land acquisition. In this method, land is acquired in bulk by the development agency under the Land Acquisition Act, 1894 and compensation is paid to the farmers on the basis of prevailing land prices. After that the master plan of the entire area is prepared, laying out the roads, plots for social amenities and plots for sale. Roads and infrastructure are then provided using government funds or loans. Lastly, serviced plots are sold for urban uses at market rates. In this case the increment in land value goes to the development agency and not the original land owners.

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