Author Archives: Siddharth Wadhwa

    Land Pooling – Now possible with smaller plots too

    Category : MPD-2021 News

    People with even 2 hectares of land will now be able to participate in the Land Pooling Policy

    Najeeb Jung, LG of Delhi approved some more changes in DDA’s Land pooling policy. The revision in the policy states that the land owners who have less than 2 hectares of land may avail transferable development rights in the form of 150 floor area ratio for their piece of land. Smaller plots may cause many interruptions to the facilities that will be created regarding infrastructure. The TDR would be a component that can be sold to other Developer Entity (DE) or any other land owner who has a plot of 2 hectares on which the development is taking place in the same area.

     

    Siddharth Wadhwa is a student of Mass communication from the Jamia Milia Islamia university, and a keen policy watcher for the Urbaniaztion of Delhi. He also is interning with one of the leading organizations with core competence on MPD 2021


    Land Pooling – A gold Pool for Farmers

    Category : Blog

    In a chat with the DDA Vice chairman, some questions were put up before him.

    Farmers want to know why they should surrender their land. To which the VC said “That the land which the farmers will get back will be like pot of gold. They’ll get fully developed pieces of residential land. They can sell it and earn a huge profit. Or they also have an option to get into an agreement with the land developer, who will help them in selling the residential places.”

    External Development Charge (ECD) may discourage many people from giving up possession of their land. The VC didn’t agree with this statement. He said “It is due to this reason there’s an option of waiving off the EDC by giving 8% of the developed land. People are even aware of the prices prevailing. So the prices offered by the DDA under EDC are Rs2500 per sqft. Such rates can be considered cheap in Delhi.”

    The policy can be connected with the smart city concept. Delhi will be a smart city and it will also create many smart sub-cities. The DDA will be providing the basic infrastructure needed in the area. Each of the aspect will be designed on the basis of Smart City norms. For example Ensuring 24X7 water supply will be a tough challenge.

     

    Siddharth Wadhwa is a student of Mass communication from the Jamia Milia Islamia university, and a keen policy watcher for the Urbaniaztion of Delhi. He also is interning with one of the leading organizations with core competence on MPD 2021


    There’s still time to invest in Delhi

    Category : Blog

    Since DDA announced the guidelines for the Land Pooling Policy there is a strong buzz in the real estate market. Builders are asking people to invest in real estate before it gets too late. People have no idea about the whole policy but experts suggest that people should wait until the policy is implemented.

    Earlier there was very less scope for development in the city in the past decade. NCR towns of Gurgaon, Noida, and Ghaziabad have been the only areas where development has taken place. Land pooling policy will change all this.

    The following decade will make property more affordable in Delhi similar to the NCR region. Experts say that rates of 24000 units coming up in zones L, N, K-I, P-II and J may vary from Rs5000 per sqft to Rs12000 per sqft.

    Many builders have purchased land from farmers, models of housing projects are also ready and they are looking for buyers. This activity is taking place in zones L, P-II, and N which covers areas such as Chhawla, Kanjhawala, Mukundpur, Najafgarh, Khera Khurd. Metro connectivity is also being planned under the Phase IV of the Delhi Metro.

    Nobody knows when the Delhi Govt will declare the 95 villages as development areas. So it won’t be a good idea to invest as of now. The policy may face some hindrances. Investors should wait till the policy is implemented.

    I spoke to Ramesh Menon, Director of Certes who clarified that ~ “Today is a good opportunity for investors in Land. They would maximise their highest yield when their Acres get converted to sq. ft, after the land is returned by DDA”. Hoever he cautioned that “today is not the right time to invest into apartments, which are 100% speculative”. A careful analysis of projects being sold are all based on assumptions. Experts point our that even the Courts have warned retail buyers to stay away from Pre-launch projects. 

    If you are thinking of investing in Land, today is the time. Else, wait patiently and allow your money to remain safely in your own bank accounts, don’t risk it by buying ‘non-licensed’ apartment dreams.

     


    Is Land pooling the solution to Delhi urbanization

    Category : Blog

    By Siddharth Wadhwa

    The issue of acquisition of farmers land by the DDA is a sensitive issue. DDA wants to implement the land pooling policy to consolidate land and use it for developmental activities on the outskirts of Delhi.

    The land pooling policy allows the land owners to pool their land for development purposes by DDA. instead of meagre compensation, the owners will get around 48-60 percent of the total developed land. Guidelines for implementing this have been issued by the Union Urban Development ministry.

    Earlier the DDA used to acquire land from farmers and develop it for construction of townships, parks, houses etc. Acquisition of land is now a tough task. DDA hasn’t acquired any major chunk of land in the past 10 years. DDA has high hopes from the policy to provide infrastructure to the city and houses for the increasing population.

    Under the Land pooling policy land owners have to transfer the ownership rights of their land to the land pooling agency.

    The land will be developed by DDA, including the construction of roads, sewerage and electricity connections. DDA will later transfer ownership of the developed land back to the owner.

    The areas identified as development zone in the capital are north, west and south-west regions. DDA will ask the farmers who are interested in the policy to transfer the ownership rights of their land to DDA.

    DDA will not force anybody. The scheme is purely voluntarily. A farmer can join the scheme either as an individual or in a group. Private agencies are also free to join if they have purchased parts of land.

    The land pooling model can be categorised into two parts:

    • 60 percent of the developed land will be returned to the owner if he contributes 20 hectares or more.
    • If the land contributed for development is less than 20 hectares then only 48 percent of land will be returned to the owner.

    The remaining land will be used by DDA for development of civic amenities.

    After the owner hands over a part of land to DDA, the owner may be allotted a developed land, part of any sector of the proposed township, within a radius of 5kms.

    DDA will hold a lottery for returning the land to the respective owners. This will ensure transparency in allocation.

    A minimum of 5 acres should be given by those participating in the land pooling policy. This can be at different places. A development charge of Rs 2 cr per acre (estimation only) is to be given for building infrastructure.

    Development Charges

    Farmers who are unable to pay the external development charges can still participate in the land pooling policy. They are exempt from paying the EDC / IDC if they surrender a small part of the FSI to DDA. A farmer getting back 48 percent of the residential land will get 35 percent land.

    Most residential areas in Delhi have been created by cooperative group housing societies. Land pooling policy will also help the private players. They’ll be able to buy the developed land from farmers and construct apartments. The government is aiming to pool around 20000 hectares of land.

    The policy will unlock around 20000 hectares of land for development within Delhi. It will cover up the shortfall of land in the capital city. The scheme will also benefit the economically weaker section. 15 percent of the houses built will be reserved for them.

    To prevent any delay by the government agency a penalty clause has been introduced in the policy. Houses or commercial complexes need to come up within seven years. They’ll be penalised if they ask for more time.

    This policy would bring about a praradigm shift in the manner that Delhi would be urbanised, in the years to come.

    Siddharth Wadhwa is a student of Mass communication from the Jamia Milia Islamia university, and a keen policy watcher for the Urbaniaztion of Delhi. He also is interning with one of the leading organizations with core competence on MPD 2021


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