Centre scraps ‘land for land’ policy, Metro projects set to be fast-tracked

Sources in the Urban Development Ministry said the decision has been circulated to all Ministries and to the Prime Minister’s office.

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The note states, “Ministries, departments and public sector undertakings (PSUs) of the Centre will not ask for land in exchange for land, required for the implementation of Metro rail projects”.

“During the execution of Metro rail projects in the country, one of the major impediments has been the insistence by various ministries and departments of the Centre on provision of land for land required for the projects and that too of an equal monetary value. As Metro companies do not have a land bank, such conditions lead to protracted negotiations between the land-owning department and the company, which subjects the projects to long delays resulting in cost over-runs causing additional burden on the public exchequer, besides inconveniencing people,” the note said.

The note also directs all departments to immediately accord operating rights on the relevant land sought by the Metro rail company as per the detailed project report.

“The ministry concerned, department and PSU will be compensated for the transferred land based on rates as per the prevailing guideline values,” the Cabinet noted.

Explaining the process, a senior government official said “So far, every time a Metro rail company approached a certain Ministry for land, the Ministry would ask the company to give it a piece of land of the same monetary value elsewhere. This would make it difficult as then the Metro rail company would have to approach different departments for the land to be given in exchange leading to project delays.”

Commenting on the decision, a senior Delhi Metro Rail Corporation (DMRC) official said, “The DMRC too has faced issues with its projects at Delhi Cantonment, Shankar Vihar, Lal Quila and Naraina since these lands belong to the Defence Ministry. It had taken us almost a year to resolve the issue. After several deliberations, the issue was sorted out and the projects cleared. This decision will definitely make things easier.”