Centre’s reform nudge to States resulting in less land wastage: Ministry data, Pg12

Since 2020, the Centre has incentivised States to undertake land and industrial reforms via the Scheme for Special Assistance to States for Capital Investment.

• The scheme provided 50-year interest-free loans, conditional upon States implementing reforms in land digitisation, bylaws, urban planning, etc.
• 18 out of 22 reforming States have successfully reduced land wastage in industrial plots by updating outdated parking and setback norms.
• Land allocated for non-productive use (like setbacks and parking) dropped from ~50% to below 30%.

Detailed Insights:

• Background and Financial Support:

  • The scheme began with ₹12,000 crore in 2020 and has expanded to ₹1,50,000 crore in 2025-26.

  • Reforms included digitising land records, improving urban construction bylaws, fiber optic infrastructure, and encouraging asset monetisation.

• Impact on Industrial Land Use:

  • Earlier, nearly half of industrial plot area was mandated for buffer zones and parking, which led to underutilisation.

  • With new regulations, these outdated norms were streamlined, freeing up land for productive use and industrial efficiency.

• Digitisation Milestones:

  • 90% of cadastral maps (which show detailed land boundaries) digitised.

  • 30% of land parcels (22 crore of 76 crore) assigned Unique Land Parcel Identification Numbers (ULPIN).

  • 91% of Record of Rights (RoRs) digitised (35 crore of 38 crore), improving land transparency and reducing disputes.

Mains Mock Question:

Q. “Land reform in India must now focus on improving land utilisation, transparency, and digital access.” In light of recent reforms under the Special Assistance Scheme to States, critically examine the role of cooperative federalism in addressing land-related inefficiencies.