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Andhra CM bets on land pooling strategy to build dream capital Amaravati: What is it?

Published on 02/05/2025 03:43 PM

Prime Minister Narendra Modi will visit Andhra Pradesh on May 2 to lay the foundation stone and inaugurate a host of projects worth Rs 58,000 crore in the state’s greenfield capital, Amaravati.

According to News18, as part of Amaravati greenfield capital reconstruction, the Prime Minister will lay the foundation for 74 projects worth Rs 49,000 crore, which encompass the construction of the assembly, secretariat, high court buildings and judicial residential quarters.

To turn Andhra Pradesh Chief Minister Chandrababu Naidu’s dream project Amaravati into a mega city, the state government may acquire another 30,000 acres under the Land Pooling Scheme (LPS) from 11 villages on the banks of the core capital city. The state government is planning for voluntary land pooling rather than acquisition in the interest of farmers.

What is the state government’s plan?

The proposed LPS is in addition to the land acquired for the inner ring road, outer ring road and railway projects coming up close to Amaravati.

According to a report in The Times of India, the Andhra Pradesh government has identified about 44,673 acres of land in the 11 villages from which about 30,000 acres are likely to be pooled through negotiations. All the villages are outside the 29 villages comprising the core capital city area.

Last year, TOI reported that the Naidu government was undertaking efforts to woo farmers who were reluctant to part with their land.

In some instance, officials personally visited the residences of landowners to convince them to shift their land under LPS.

Spread over 217 square kilometres, Amaravati had taken shape in 2015. However, its development had come to a halt in 2019 after YS Jagan Mohan Reddy-led YSR Congress Party won the assembly polls. However, after winning the 2024 Assembly polls, Naidu is once again focusing on Amaravati.

The state government already pooled around 34,000 acres in the capital city area in the first phase of LPS in 2015.

“Landowners and farmers are also keen on pooling land to the government rather than acquisition by the government. The local MLAs have conveyed the wishes of the farmers and landowners to the CM,” minister for Municipal Administration and Urban Development, P Narayana, told reporters.

The minister said if there’s land acquisition, then only 5,000 acres will be needed for the airport, but farmers will be at a loss. “As per the Land Acquisition Act, they can get only two-and-a-half times the registration price. On the other hand, land pooling will benefit farmers immensely in the form of returnable plots…” he said.

What is land pooling?

Land pooling is an activity where a group of landowners hand over their land parcels to the government collectively for infrastructure development. Once the development is complete, landowners receive a portion of the developed land back, typically proportional to their original holdings.

According to the Indian Institute for Human Settlements (IIHS), there are several ways in which land can be assembled and developed, depending on contextual requirements. The pooled land can be developed by the development authority, parastatal agency, or private developers with the development authority acting as facilitator. Land pooling was introduced in India through the Bombay Town Planning Act of 1915.

Land pooling has been implemented in various states including Delhi, Gujarat, Maharashtra, Punjab and Kerala.

What is land acquisition?

It is the process by which the government acquires private property for public purpose without the consent of the land-owner. Land Acquisition is governed by the Land Acquisition Act, 1894. The government must follow a process of declaring the land to be acquired, notify the interested persons, and acquire the land after paying due compensation.

Key difference between land pooling and acquisition

Given the pressing need for urban development in India, land acquisition by states has persistently been a key issue. Both acquisition and pooling are methods of procuring land but there is a key difference.

Land pooling is when landowners voluntarily contribute their land for development in exchange for compensation or a share of the developed land. Land acquisition, on the other hand, is when the government purchases land from the owner for development projects, often without the consent of landowners. The compensation is also determined by the government.

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