Monetization of Urban Land: Review, Approach and Framework for ULBs
Urban India, Volume 37, No. II, pp 6-19
11 Pages Posted: 7 Aug 2018
Date Written: December 29, 2017
Cities are increasingly coming under pressure to provide infrastructure services to an increasing urban population in developing countries like India. However, public infrastructure service delivery and its improvement need sufficient financial resources at the hands of local bodies-both municipal and development authorities. It is well acknowledged that the urban local bodies (ULBs) in developing countries need to improve fiscal performance through better devolution-both administrative as well as fiscal devolution (Peterson and Clarke Annez 2008; RBI DRG 2008). One option that received attention in this context is the utilization of land assets towards improving finances of municipal/ urban bodies (Mohanty 2003, Vaidya 2008). Land is a valuable asset of ULBs and rapid urbanization is driving up its price. As the investments made by ULBs towards public infrastructure and amenities are capitalized in land value (both public and private), the ULBs can capture the potential of land value gains by monetizing urban land for revenue generation purpose which aids in better infrastructure service provision. In this paper, an attempt is made to highlight the importance of land-based financing of cities with a review of the experiences; then a governance frame work for the disposal of urban land is developed such that infrastructure finance and urban development are sustainable.
Keywords: Urban Land, Land Asset Management, Monetization, Governance
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