Use of land pooling and reconstitution for urban development: Experiences from Gujarat, India

While the fast pace of urbanization in India creates a strong demand for serviced urban land, the local governments, the entities responsible for providing this land, face strong opposition to compulsory land acquisition, the traditional method of acquiring land for planned development. Furthermore, poor fiscal health restricts local governments’ ability to provide high-quality infrastructure and services. Land Pooling and Reconstitution (LPR) offers a solution.This paper analyzes the use of LPR in the state of Gujarat, India, highlights the key success factors, suggests reforms that would increase the tool’s effectiveness, and identifies the lessons learned from Gujarat’s experience. Specific lessons include the following: use revenues from the previous LPR projects to fund infrastructure and services in the new projects using a revolving fund mechanism; delink the resolution of land ownership disputes from LPR scheme preparation and approval process; institute extensive grievance redressal process; and develop infrastructure early to garner landowner support for LPR.

► This paper examines the use of Land Pooling and Reconstitution (LPR) in the state of Gujarat, India.
► Early development of infrastructure and extensive grievance redressal process help to secure landowner support.
► Resolution of land ownership disputes are delinked from scheme preparation and approval.
► Revenues from the sale of land make LPR self-financing.