Lack of infrastructure facilities has led to inception of slums in Delhi. In 2011, Delhi’s population was estimated to 1.7 crore. But the present infrastructure accommodates only 1.5 crore people. By the end of the year 2021, the population will rise by 60 Lakh. Thus the need of the hour is to arrange the land parcel to cover the existing deficit as well as the expected increase in population by 2021.
To address this issue there is a need to re-monetize the financial resources and limited land with DDA by overhauling existing regulations and by encouraging extensive participation ie. increasing the role of private sector in acquisition and development of land in Delhi.
The extensive participation change has been implemented through the public private partnership in the new land pooling policy.
This liberalized Land Pooling Policy allows realty developers to directly buy land from owners in partnership rather than through compelled acquisition. In simpler words, it allows land owners to pool their land for the development process and once the project is completed, they get the part of developed project instead of money. This new policy is expected to fill the gap in supply and demand of consanguineous housing needs.
Delhi Development Authority (DDA) will only play the role of a facilitator with minimum intervention to speed up the process of planned development. DDA until now had a stronghold in real estate sector.
DDA will declare the areas to be used under LPP and formulate the norms on Residential Floor Area Ratio. LPP is expected to release 40,000 acres of land which will further lead to development of 1.45 million houses