Urban, Rural land reforms by Centre

Context

The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman has introduced a slew of land-related reforms aimed at transforming both rural and urban areas. These reforms, which will be incentivized for completion within the next three years through appropriate fiscal support, cover land administration, planning, management, and urban planning, usage, and building bylaws.

Rural Land Reforms

The government has proposed several key actions to streamline and digitize rural land records:

• Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar: Assignment of a unique identification number for all rural lands
• Digitization of Cadastral Maps: Digitization of land records and maps for better administration and management
• Survey of Map Sub-divisions: Conducting surveys to update land records based on current ownership
• Establishment of Land Registry: Setting up a comprehensive land registry system for better record-keeping
• Linking to Farmers Registry: Integrating the land registry with the existing farmers registry for improved service delivery

These reforms will facilitate credit flow and other agricultural services, benefiting farmers and rural communities.

Urban Land Reforms

• Digitization of Land Records with GIS Mapping: Digitizing urban land records and integrating them with GIS mapping for better planning and management
• IT-based System for Property Record Administration: Establishing an IT-based system for efficient property record administration, updating, and tax administration
• Improving Financial Position of Urban Local Bodies: These reforms are expected to enhance the financial position of urban local bodies by streamlining property tax administration and collection

Collaboration with States

• The success of these land reforms relies heavily on the collaboration between the Centre and the states. The Finance Minister has emphasized the need for building consensus and working together to ensure effective implementation.
• To incentivize states for faster implementation of reforms, the government proposes to earmark a significant part of the 50-year interest-free loan for promoting competitive federalism.

Benefits of Land Reforms

• Improved Land Administration and Management: This work will promote better organisation in the way that land records are managed and also ensure that a good registry system is put in place for proper disposition of land resources.
• Increased Credit Flow and Agricultural Services: Integration of the land registry to the farmers registry will also enhance easy access to credit and other agricultural inputs to the farmer and rural development.
• Enhanced Financial Position of Urban Local Bodies: Computerization of records and better collection and recovery of property taxes will enhance the financial health of ULBs which in turn will help them deliver better services to the public.
• Efficient Urban Planning and Development: Allowing GIS mapping with land records and developing IT supported methods for records of properties’ management will improve usage and development of urban land.
• Bridging Inequality and Improving Total Factor Productivity: The reforms are on the efficiency of factors of production, land, labor, capital and entrepreneurship besides technology as a tool. It is believed that this has a multiplier effect of closing the gap as well as raising the efficiency frontier.

Challenges

• Coordination and Consensus Building: Ensuring uniform implementation amid varying state land laws and systems.
• Data Security and Privacy: Safeguarding sensitive information with robust security measures.
• Capacity Building and Training: Providing training and resources for personnel in land administration to ensure effective system implementation.
• Inclusivity and Accessibility: Ensuring all societal sections, including marginalized groups, benefit from the reforms, making systems accessible and user-friendly.

Conclusion

The land reforms in the Budget 2024-25 aim to transform land administration and management in both rural and urban areas. These reforms focus on streamlining land records, improving credit flow, enhancing urban local body finances, and promoting efficient urban planning, which can drive sustainable development and improve lives in India. Success depends on effective Centre-state collaboration, robust data security, capacity building, and ensuring inclusivity and accessibility. With a well-planned implementation strategy and a commitment to overcoming challenges, these reforms can lead to a more equitable and prosperous future for India.

Source: livemint