Centre’s guidelines for special assistance to states finalised, Rs 10,000 crore for land reforms

The financial outlays for these activities are significant, as Finance Minister Nirmala Sitharaman, in her Budget Speech on July 23, announced that the Centre will incentivise land-related reforms by state governments. She also announced that details of six crore farmers and their lands will be included in the farmer and land registries.

According to sources, states will need to undertake land-related reforms in rural areas, which include the assignment of a Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands; digitisation of cadastral maps; survey of map sub-divisions according to current ownership; and the establishment of a land registry.

In urban areas, fiscal incentives will be provided for the digitization of land records using GIS mapping and the establishment of an information technology-based system for property record administration, updating, and tax administration.

Apart from these activities, the Centre has also decided to provide Rs 5,000 crore for the construction of working women’s hostels. In her Budget Speech, Sitharaman announced plans to “facilitate higher participation of women in the workforce through the establishment of working women’s hostels in collaboration with industry, and setting up crèches.”

According to the guidelines, the land for the hostels will be made available by the state government free of cost, or the cost of acquiring the land will be borne by the state government.

The state should adopt a Public-Private Partnership (PPP) model for the operation and maintenance of the hostels, according to the guidelines. Ownership of the hostel would rest with the state government, while operation and maintenance would be managed by a private party.

Of the Rs 5,000 crore earmarked for the construction of working women’s hostels, Uttar Pradesh will receive the highest amount of Rs 382 crore, followed by Madhya Pradesh (Rs 284 crore) and Assam (Rs 226 crore).

Additionally, the Centre will provide fiscal support of Rs 2,000 crore for the development of iconic tourist centers on a global scale; Rs 3,000 crore for incentives for scrapping old vehicles; Rs 15,000 crore for stimulating industrial growth; Rs 1,000 crore for the development of the National Capital Region (NCR); Rs 15,000 crore for states’ shares of Centrally Sponsored Schemes, including Urban and Rural Infrastructure Projects; Rs 4,000 crore in incentives for implementing the SNA Sparsh model for just-in-time release of funds under Centrally Sponsored Schemes; and Rs 25,000 crore as incentives for achieving targets fixed for capital expenditure for 2024-25.

The Rs 1,000 crore allocated for the development of the NCR will be divided equally among the three states of Haryana, Uttar Pradesh, and Rajasthan.