Andhra Pradesh can mortgage land for funds after pooling
After the agreement, the right over the land would be with the CRDA
By : s.n.c.n acharyulu
Update: 2014-12-27 05:51 GMT
Hyderabad: The AP Capital Regional Development Authority can make money from the lands pooled from the farmers for construction of the capital. After pooling the land from the farmers, the CRDA will have full rights over the land.
In the agreement between the landowners and CRDA, the latter will promise to give 1,200 square yards of land per acre within nine months after developing it. But once the landowners sign the agreement, they will lose all rights on the land and CRDA will have complete power over it.
The AP government has proposed to pool about 30,000 acre. After completion of the land pooling process, the CRDA can mortgage this land and raise capital as it will have the power to raise loans from the government or mobilise resources by issuing debentures or bonds.
Landowners will only have rights over the 1,200 square yard, which the CRDA will give them after development. For the pooling of land, the government has to pay, through CRDA, around Rs 150 crore per year. To raise these funds the CRDA will have right to mortgage the lands to pay to the owners.
AP finance minister and chairman of the Cabinet Sub Committee on land pooling Yanamala Rama Krishnudu said that after the agreement between the landowners and CRDA, the right over the land would be with the CRDA.
He, however, added that the government had not taken any decision regarding mortgaging the land.