Karnataka Chief Minister Siddaramaiah
Credit: DH Photo/Krishnakumar P S
Bengaluru: The Siddaramaiah administration said on Thursday that it is looking at “creative and intelligent” ways of mobilising resources from land, for which authorities are studying “value capture” models from other Indian states and countries to pick the best methods.
DH reported on June 18 that the government is actively considering monetisation of 25,000 acres of land around Bengaluru. This was based on a preliminary report by consultancy major Boston Consulting Group (BCG), which the government has hired to help augment revenues.
The finance department, headed by Siddaramaiah, denied this, but went on to add: “Some of the recommendations also include a limited extent of monetisation of non-strategic assets, but that does not have to mean disposal or outright sale of government lands.”
The department said it has the fundamental responsibility to optimise resource mobilisation “without putting undue burden on citizens” and added that the government is focusing on “ensuring equitable economic growth” so that poorer sections of society “accrue some benefits of rapid economic growth”.
The five ‘guarantee’ schemes have made finding additional resources imperative. “We need Rs 60,000 crore for the guarantees this financial year. Shouldn’t we mobilise resources?” the CM said in Ballari.
To this effect, many measures are being proposed and considered. “Idle land parcels of the government and other government entities, which are prone to encroachment, would be developed to generate a continuous stream of revenue to the state without selling these lands,” the department said.
“...innovative value capture financing methods would be employed to generate revenue to the state... Various successful value capture financing methods deployed in other states and countries would be carefully studied and the best methods would be adopted,” it said.
The value of private lands can be “better unlocked” through “orderly town planning and building infrastructure like roads, civic amenities and metro lines,” the department said.
Karnataka is also seeing “greater potential” from non-tax revenues, especially in sectors such as mining, advertisements in urban areas and naming rights. “Better tax compliance is also another measure that is being explored,” the department said.
The finance department has promised transparency. “...any proposal to raise resources will be in the public domain once it is properly fleshed out,” it said. “There’s no reason for anyone to jump to hasty conclusions based on preliminary ideas on the table.”