KARNATAKA GOVERNMENT PLANS NEW ASSET MONETIZATION POLICY

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The government of Karnataka has its eyes on encroached parcels of land to replenish its cash reserves. To date, the government has cleared encroachments and reclaimed land to the extent of 2.7 lakh acres. The eviction process is on for another 1.3 lakh acres of land.

Due to the pressure by the legislative to provide more momentum to the process, the government is working on a policy to mop up non-tax revenue through asset monetization.

16,159 acres of land in Bengaluru Urban district alone is readily available for monetization, in the legislative assembly last week an acre of land in Bengaluru sells for roughly Rs 30 crore.

Naveen Raj Singh, regional commissioner (Bengaluru division) and director of Karnataka Public Lands Corporation Limited (KPLC) said “Discussions are on to formulate guidelines for the implementation of the new asset monetization plan. A policy is expected to be announced shortly,”.

At a going rate of Rs 30 crore per acre, land in Bengaluru alone is worth Rs 4.8 lakh crore, almost twice the budget outlay of Rs 2.4 lakh crore, announced for fiscal 2021-22.

AT Ramaswamy, senior JD(S) legislator who headed a joint legislature committee on land encroachment in 2006, said “If it is seriously pursued, asset monetization may fetch revenue double the size of the state budget. The government need not borrow so extensively if it is focused on selling reclaimed land,”.

Land encroachment, especially in Bengaluru Urban district, has been the subject of serious debate in the ongoing budget session and the government has come under severe attack for its failure to evict squatters. Revenue minister R Ashoka even admitted in the Assembly that “his hands are tied from cracking down on land grabbers in the state”.

The government bid to sell the available parcels of land has been painfully slow. It could sell just 7 acres of land in and around Bengaluru through auctioning in phase-1 in 2020. About 104 acres are set to go under the hammer soon. “The response so far has been tepid due to multiple reasons. The Covid-induced slowdown has impacted a lot. We hope the demand will pick up in the new financial year,” said Manjunath, deputy commissioner of Bengaluru Urban district.



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