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Land-Based Financing Elements in Infrastructure Policy Formulation: A Case of India

Author

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  • Raghu Dharmapuri Tirumala

    (Faculty of Architecture, Building and Planning, Melbourne School of Design, The University of Melbourne, Melbourne 3010, Australia)

  • Piyush Tiwari

    (Faculty of Architecture, Building and Planning, Melbourne School of Design, The University of Melbourne, Melbourne 3010, Australia)

Abstract

A rapid increase in land and property values has been one of the driving forces of urban ecosystem development in many countries. This phenomenon has presented project proponents/policymakers with multiple options and associated challenges, nudging them to configure or incorporate elements of land-based financing in their policies and legislations. Specifically, the Government of India and various state governments have sought to monetize land through diverse instruments, for augmenting the financial viability of infrastructure and area development projects. This paper compares Indian central and state infrastructure policies/acts with regard to land monetization strategies. The analysis indicates that policies and legislations are taking a turn towards promoting land monetization mechanisms as a financing tool for cities and project implementation agencies. However, the approach is cautiously used and implementation is often seen to fall behind actual project timelines. Based on the findings, key determinants of a successful policy that captures an increase in land values, are identified. The learnings provide useful inputs for states to strengthen their policy documents and legislative/institutional frameworks, for ensuring the effectiveness of land-based financing tools.

Suggested Citation

  • Raghu Dharmapuri Tirumala & Piyush Tiwari, 2021. "Land-Based Financing Elements in Infrastructure Policy Formulation: A Case of India," Land, MDPI, vol. 10(2), pages 1-17, January.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:2:p:133-:d:489712
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    References listed on IDEAS

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    2. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, and Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 389-430.
    3. Sumana Chaudhuri, 2011. "Impact of privatisation on performance of airport infrastructure projects in India: a preliminary study," International Journal of Aviation Management, Inderscience Enterprises Ltd, vol. 1(1/2), pages 40-57.
    4. George E. Peterson, 2008. "Unlocking Land Values to Finance Urban Infrastructure : Land-Based Financing Options for Cities," World Bank Publications - Reports 10599, The World Bank Group.
    5. Hiroaki Suzuki & Robert Cervero & Kanako Iuchi, 2013. "Transforming Cities with Transit : Transit and Land-Use Integration for Sustainable Urban Development [Transformando las ciudades con el transporte público : integración del transporte público y el," World Bank Publications - Books, The World Bank Group, number 12233.
    6. George E. Peterson, 2008. "Unlocking Land Values to Finance Urban Infrastructure," World Bank Publications - Books, The World Bank Group, number 6552.
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    Cited by:

    1. Alessio Russo & Giuseppe T. Cirella, 2021. "Urban Ecosystem Services: Current Knowledge, Gaps, and Future Research," Land, MDPI, vol. 10(8), pages 1-4, August.

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