Question : Land Value Capture Mechanism

(a) whether the Government had announced the Land Value Capture Mechanism in the country in 2019;
(b) if so, the details and the salient features thereof;
(c) the present status of implementation of the said mechanism in various States;
(d) the detail of the cost of land acquisition that has been deposited by the State Governments as per section- 3D of the National Highways Act, State-wise;
(e) whether the Government proposes to make the deposit percentage flexible depending on the financial ability of the State Governments;
(f) if so, the details thereof; and
(g) the steps taken by the Government to amend the said mechanism so that the value captured by the State Government is shared with the previous owners of the land?

THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)

(a) & (b) Yes, Sir. Government had announced the Land Value Capture Mechanism in the country in 2019. The policy has been revised in March, 2021 for developing a mechanism to implement Value Capture Finance (VCF) jointly by the States and National Highways Authority of India (NHAI) in order to part finance the cost of highway construction.

The salient features of the policy are as under:
i. Project facilitation by States: Expediting land acquisition, preferential mining rights for NHAI projects.
ii. Contribution through land: Sharing land acquisition cost, giving land or providing State/UT Govt land having potential to generate revenue to NHAI.
iii. Waiving/refunding of Royalty/taxes etc.: Royalty waiver on sand, earth, aggregates/stones, GST refund on construction material like cement, steel, bitumen etc.
iv. Sharing of enhanced value of land in Project Impact Area or 1 km of either side of the highway: by sharing stamp duty (upto 20%), sharing (minimum 10%) Change in land Use (CLU) fee, development fee, premium on additional FSI/FAR, charges on building rights/land use re-adjustment.

(c) &(d) The present status of implementation of the said mechanism and detail of the cost of land acquisition deposited by the State Governments, in various States is attached as Annexure.

(e) & (f) The deposit percentage is not fixed and is as per mutual agreement between NHAI and the concerned State Government.

(g) There is no proposal to amend the said mechanism so as to include the previous landowners as beneficiary of the said value capture. However, as per the Policy guidelines, VCF policy is to be implemented jointly by NHAI and the concerned State Government. And the concerned State Government, if decides, may pass on the benefit of value capture to the erstwhile landowners.