In News: The government has mapped as much as five lakh hectares of land — more than four times the size of Hong Kong — spread across 3,390 industrial belts and special economic zones (SEZs) in the country, as it prepares a national land bank portal to woo investors.
Land Bank System
- Land banking is the practice of aggregating parcels or blocks of land at current market rates or lower, for future sale or development.
- A land aggregator aggregates land by tracking the geographical and topological locations, which are primed for investment, based on social infrastructure and demographic factors.
- The system has been developed by the Integration of Industrial Information System (IIS) with state GIS (Geographic Information System).
- IIS portal is a GIS-enabled database of industrial clusters/areas across the states.
- On the system, more than 3,300 industrial parks across 31 states/UTs covering about 4,75,000 hectares of land have also been mapped out on the system.
- The information available on the system will include drainage, forest; raw material heat maps (horticulture, agricultural, mineral layers); multilayer of connectivity.
Organisations that engage in land banking:
- Union, State and Local Governments: Government agencies use land banking to support long-term civic planning or to support future economic development. Municipalities gain and hold ownership of land to be used for new roads, metro stations, hospitals, schools, parks or for economic or residential development efforts.
- Businesses: Can purchase and hold undeveloped or pre-developed land parcels, which are expected to increase in market value, for long-term business gains.
- Universities and Non-Profit Entities: Can purchase land for future growth and/or expansion in public interest.
- Individuals: Individuals can use land as wealth creation vehicles, either for their retirement plans, to pay for their children’s education, or to create a family legacy.
The broad objectives were to:
- Identify issues related to availability of land for industry and those pertaining to purchase of land by private sector and/or purchase/acquisition of land by Government for private sector industrial investments
- Examine the related constraints that impede the functioning of an effective land market in the country and recommend possible solutions to address such constraints
- Suggest alternatives for making suitable land available to private sector industrial investors with necessary social and environmental safeguards.
- Boost Employment: It would open a large number of employment opportunities.
- Attract investments: The simplification of procedures will help in attracting investments from abroad and also lead to Ease of doing business for domestic investors.
- Time-bound approval and updates: It could leverage the capabilities of existing systems and provide time-bound approvals and real-time status updates to investors.
- Promote Atma Nirbhar Bharat: It will push the approach of ‘One District One Product’ (ODOP), and promote a National Movement Towards Atma Nirbhar Bharat.