Chapter 3Resource Mobilization for Plan Implementation

3.1 Introduction

Land, finance and manpower are the three main resources for planning and development of urban and regional centres. As a basic principle, allocation of these resources among various competing land uses must be such that it helps in achieving an optimal level of economic efficiency with inclusion and equity $^{1}$ .

In case of spatial development and various development programmes, the government has been normally considered as the sole source for finance and ownership. However, in the recent years the role of private sector in the development process has been duly recognized. As a general policy on resource mobilization, it would be desirable to have a proper mix of public and private sectors participation, both playing a symbiotic role in such a way that the public infrastructure programmes are implemented with the strength of public authority and efficiency of the private entrepreneur. This should be the framework for PPP. The role of people is also being recognized, leading to development of the PPPP model.

This chapter focuses on the fiscal resource mobilization, land resource mobilization, good governance and manpower resources mobilization strategies for development. The local authorities, chief town planners, city commissioners could select the most appropriate model and combination depending upon the contextual possibilities.

3.2.1 Land as a Resource

Land is the medium on which the entire superstructure of human settlement is created and under which a lot of infrastructure find their place. Planning for the use of land leads to socio-economic and physical development of urban and rural areas. However, it is a scarce commodity as its supply is limited and it cannot be mass created. The (Draft) National Land Utilization Policy, 2013 states that land is required for development of essential infrastructure and for urbanization, while at the same time there is also a need to protect land under environmentally sensitive zones and land which provides ecosystem services. Farmers' livelihood options and food security issues make it imperative to protect land for agriculture. Further, the need to preserve natural, cultural and historical areas requires land protection. It is, therefore, most essential to ensure

$^{1}$ Technology and capacity to handle the various resources can also be defined as a resource.

that utilization of the available land is judicious and in the best interest of the community through the instrument of development plans.

Land value depends on demand and supply of land. The value increases as the demand exceeds the supply, which is the general case, owing to limited supply of land against it growing demand in the wake of urban growth and development. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013(RFCTLARR Act, 2013), defines “land” so as to include the benefits that arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth $^{2}$ . The Act also requires that the market value of land be calculated as the minimum land value specified under the Indian Stamp Act, 1899 for the registration of sale deeds in the area, where the land is located, or the average of the sale price for similar type of land located in the immediate areas adjoining the land being acquired. It is to be ascertained from fifty per cent of the sale deeds registered during the preceding three years, where higher price has been paid. This approach is suggested for determining the market value of land for acquisition.

The Land Acquisition Act of 1894 was made mainly to facilitate the government to procure privately held land for the purpose of developing public infrastructure and also for companies. After 120 years, this Act was replaced by the RFCTLARR Act, 2013. The Act has provided for fair compensation to those whose land is acquired permanently or temporarily, while bringing in enhanced transparency to the process of acquisition of land.