Professional Documents
Culture Documents
Vidyadhar K Phatak
Presented at Strengthening Institutions, Enhancing Governance Sixth Annual International Conference on Public Policy and Management December 28, 2011, IIM Bangalore
Definitions
When NEW
It is Real Estate Development
When City
It is no longer NEW
The Process
1 2 3
Land Assembly
Delivery of Services
Land Assembly
Eminent Domain or Compulsory Acquisition
Mainly by state e.g. Chandigarh, Gandhinagar, Navi Mumbai, Naya Raipur
Private purchase
SEZ, Special Townships Maharashtra, Gujarat
Business Fundamentals
Land is is required for for infrastructure roads, schools, healthcare, recreation 40% Value of (60%) land in urban use is more than the cost of (100%) raw land + cost of infrastructure rate of return could vary This is true of all types of new town models
Aberrations
In state developed new towns, developing new town is declared as public purpose and powers of compulsory acquisition are used. Compensation is at market value in current use. Expected rise in future use is not considered. In private land assembly land aggregators purchase land without declaring the ultimate intention. The compulsory acquisition and asymmetry of information suppress cost of land and give rise to heartburns.
Aberrations
In publicly developed townships, the lumpiness of land and infrastructure investments create cash-flow mismatch Expectations to cater to poor at affordable prices suppress returns Capturing land value gain through revision of lease rents has not been practical
Relatively small new towns either piggy back on available infrastructure or provide less than desirable options
Ground water supplemented by bottled water by consumers.
Landuse Planning
Constitution requires Metropolitan Planning Committee to prepare development plan.
Maharashtra has equated this plan to Regional Landuse Plan as envisaged in Town Planning Act
SEZ and New Towns are allowed to be developed outside the framework of landuse plans. This inverts the logic of Plan led development
The Conflicts
Land purchasers, Land acquirers Land sellers, Land Acquirees
Regional Planners, Off Site Infra Developers Service Delivery Democratic Governance
Clients Customers
Citizens
Governance Issues
Regional framework for site selection for new cities? Land assembly private purchase where regional framework is widely known or compulsory acquisition? Transition from real estate development to Delivery of services and Democratic governance?
Thank you