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Construction : Exclusive Report | April 2014 | Source : Construction Update

Government surplus land monetisation scheme yet to take off in a big way

The Government of India's plan to monetise surplus land of public sector enterprises (PSEs), ports trust and railways has come a cropper. So far the plans have not translated into funds for most of the organisations who were supposed to improve their bottom line. The factors responsible for not achieving enough in this direction are many. The lack of land records, delay in approval from different government departments and ministries, protests from labour unions and political hue and cry are responsible for under achievement of this scheme. Way back in 2012 Vijay Kelkar had recommended the government to sell the unused and underused land bank of PSEs, port trusts and railways over the next 24-36 months. The potential for land monetisation is enormous. According to government estimates, 60 sick PSEs together have about 49,400 acre of land that can be monetised. The global consulting firm Deloitte estimates that the major ports in India have combined land assets of 2,58,000 acre. Out of this 20 per cent can be leased out. On the other hand, the Airports Authority of India has about 49,400 acre of unused land, and the defence services have about 41,99,000 acre. The surplus land can be used for industrial, commercial and residential activity.
 
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