Ashraf Engineer
August 31, 2024
EPISODE TRANSCRIPT
Hello and welcome to All Indians Matter. I am Ashraf Engineer.
In the Union Budget presented in July, Finance Minister Nirmala Sitharaman announced a significant land reform that could have far-reaching effects, if implemented right. There was fiscal support for reforms spanning land administration, planning and management, urban planning, usage and building bylaws. However, the most significant is the establishment of a new land registry for rural areas and the assignment of unique land parcel identification numbers. This registry will be linked to a farmer registry to help credit flow. The unique land parcel identification number, also called ULPIN or Bhu-Aadhaar, will be accompanied by digitisation of cadastral maps and a survey of map sub-divisions as per current ownership. The digitisation of land records could potentially revolutionise India’s problem-riddled land management system. Let’s look at why such an initiative is important and what impact could it have on farmers and the rural economy.
SIGNATURE TUNE
Land records are critical for any nation’s governance and economic progress. In India, however, such records are poorly managed and highly decentralised. This leads to several problems faced by the citizens as well as administrations and businesses. This primitive system is complex and inefficient, it leads to disputes and enables corruption. In fact, land disputes account for much of the congestion of India’s judicial system. They constitute the largest category of cases in terms of absolute numbers as well as pending matters.
There is no debate that efficient land registries and cadastral maps are the key to not just understanding land use but also to enforcing building codes. They are also used to evaluate risks from natural and manmade hazards.
In case you were wondering what cadastral maps are, they are detailed representations of land parcels that offer an understanding of property boundaries, land ownership and physical characteristics of an area. They are used to comprehend legalities tied to regions and play a pivotal role in land management and planning.
While I have been critical of this government for various reasons and I stand by it, and I don’t think the Budget delivers what’s needed overall, I do believe that the land registry is a great move if implemented well. It’s an acknowledgement of the need for an overview of land administration and property record modernisation.
Land is a unique asset. It is immovable and its value depends on fertility, location, connectivity, climate and other factors. It’s in demand perennially and its value keeps rising because its supply is finite. So, those with clear land rights are generally better off than the landless or those without clear titles. Clear titles give you better access to markets. Titles protect the rights of the holders, and impact livelihoods as well as economic and social growth.
However, land titles in India tend to be unclear due to varied reasons, from legacy issues in the zamindari system to poor administration of records. This leads to legal disputes and it’s a drag on the agriculture and real estate sectors.
In India, agricultural credit has been a hot-button issue for decades. Successive governments have pushed for more credit for farmers but the lack of collateral such as clear land titles have been a major problem. Land is the principal collateral used by farmers for obtaining loans. If the title is unclear or disputed, it restricts flow of capital and credit. This is particularly true of small and marginal farmers, who account for more than half of the total land holdings but often do not hold formal titles.
According to one estimate, more than 9.3 million people in India are affected by land conflicts in an area spanning 3.9 million hectares. This impacts investments worth $372 billion.
In 2016, the government made a start by initiating the Digital India Land Records Modernisation Programme, or DILRMP, to address these challenges. It aimed to digitise land records, minimise discrepancies and enhance accessibility, thus enabling easy land transactions. It was meant to establish an integrated land information management system to enhance real-time land information access, optimise land use, benefit landowners and investors, support policy planning, reduce disputes, prevent fraudulent transactions, eliminate the need for visits to offices, and facilitate information sharing with various agencies.
The National Generic Document Registration System or E-Registration was an initiative under DILRMP. It was a common, generic and configurable application developed for registration departments across India. It helped citizens through online entry of deeds, online payment, online appointments, online admission, document search and certified copy generation.
As of December 2023, the government claimed that 95% of the Record of Rights had been computerised, 68% of cadastral maps had been digitised, 94.95% of computerisation of registration achieved and 87.48% of the integration of sub registrar-offices with land records had been completed.
The latest Budget proposals have the potential to reduce the number of land cases in courts and streamline property transactions. If implemented right, and I keep saying this because it is the key, they can enhance transparency by identifying the right beneficiaries for compensation in cases of land acquisition by the government. It can also improve credit access, as I mentioned earlier.
The standardised format of record keeping can enable seamless compatibility and clarity of information across the country.
The benefit to the economy will be extensive – the Rural Development and Panchayati Raj Ministry estimated that digitisation could boost national GDP by 1.5%.
Incidentally, the digital mapping of land records might even provide opportunities for downstream companies to use space technologies for these activities.
The Unique Land Parcel Identification Number, also known as ULPIN or Bhu-Aadhar, will be a 14-digit alpha-numeric unique ID that will have ownership details of the plot besides its size, and longitudinal and latitudinal details.
While the Budget proposal is welcome, it’s not the easiest thing in the world to implement. For one thing, the capacity at the district and local levels is poor. This is make or break because the entire process of data collection and storage of records happens at the village, city or block level. Numerous committees have underscored the need to build capacity among officials at all levels. It is estimated that this training exercise would be needed for 1 lakh to 2 lakh patwaris, 50,000 survey staff, and in approximately 5,000 tehsils and 4,000 registration offices.
You also need to ensure that existing land records are accurate and error-free. Cross-checking all records against past transactions, and with the situation on the ground, will be time-consuming and resource-intensive.
It would require also that all information is made available through a single window. That needs integrating information across departments and updating these records.
Lastly, land, registration and contracts are regulated by both the Centre and the states. If we have to move to a conclusive titling framework, it would require amending the related Central and state laws and creating a unified legal framework for government-guaranteed ownership.
Let’s not forget also that India has been trying to develop land maps since the 1980s, with limited success. One drawback has been the lack of uniform standards. These maps are made by ‘manual digitisation’, which means that it involves an operator using a digitising table or computer screen to create the maps. These are not necessarily well georeferenced – that is, the digital data is not properly mapped to fixed geographical coordinates. Also, states use different projections, so maps prepared by one state are not compatible with those of another.
This necessitates the establishment of GIS data standards and interoperability for different end uses. Without that, such a digital initiative won’t succeed.
India needs a comprehensive land registry. It’s an uphill task but it needs to be done. But, the challenges must be recognised and planned for. Without that, this will be just another right-minded initiative that will fail because of poor implementation.
Thank you all for listening. Please visit allindiansmatter.in for more columns and audio podcasts. You can follow me on Twitter at @AshrafEngineer and @AllIndiansCount. Search for the All Indians Matter page on Facebook. On Instagram, the handle is @AllIndiansMatter. Email me at editor@allindiansmatter.in. Catch you again soon.
