Centre plans to spend Rs 10,000 crore on land reforms, Rs 5,000 crore on farmers

According to reports, the Central government intends to give states incentives totalling Rs 10,000 crore to pursue land reforms in both rural and urban areas. Additionally, in the financial year 2024–25 (FY25), the government would reportedly provide states Rs 5,000 crore to build a Farmers’ Registry. Most likely, the Scheme for Special Assistance to States for Capital Investment 2024–25 will be used to deliver these funds.

According to sources cited by The Indian Express, the Ministry of Finance has already approved the guidelines for this scheme and distributed them to the various states on August 9.

Land Reforms Initiatives and Incentives

In her Budget Speech on July 23, Finance Minister Nirmala Sitharaman declared that the Centre would provide states with incentives to implement land-related reforms. She went on to say that the farmer and land registries will have information about six crore farmers and their lands.

According to reports, the states will have to carry out a number of land-related reforms in rural areas, such as digitising cadastral maps, surveying map sub-divisions based on current ownership, assigning a Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, and setting up a land registry.

Financial incentives will be used to assist the creation of an IT-based system for the administration, updating, and tax administration of property records as well as the digitisation of land records through GIS mapping in urban areas.

Allocation for Working Women’s Hostels

The Centre also intends to provide Rs 5,000 crore to the building of hostels for working women. According to Sitharaman’s budget speech blueprint, the centre will “Facilitate higher participation of women in the workforce through the establishment of working women’s hostels in collaboration with industry, and setting up crèches,” .

The recommendations stipulate that the state governments must either pay for the land these hostels are to be built on or cover the costs of purchasing the site.

The guidelines also advise states to run and maintain these hostels using a Public-Private Partnership (PPP) model. The state governments would still own the hostels, but private organisations would be in charge of running and maintaining them.

Uttar Pradesh is expected to receive the largest share of Rs 382 crore out of the Rs 5,000 crore allotted for the construction of working women’s hostels, followed by Madhya Pradesh with Rs 284 crore and Assam with Rs 226 crore.

Development of the National Capital Region

Further financial support has been outlined by the Centre. This includes Rs 2,000 crore for the development of iconic tourist destinations worldwide, Rs 3,000 crore for incentives related to the scrapping of old vehicles, Rs 15,000 crore to promote industrial growth, Rs 1,000 crore for the development of the National Capital Region (NCR), Rs 15,000 crore for state contributions to Centrally Sponsored Schemes, including Urban and Rural Infrastructure Projects, Rs 4,000 crore in incentives for the implementation of the SNA Sparsh model for the timely release of funds under Centrally Sponsored Schemes, and Rs 25,000 crore as incentives for meeting capital expenditure targets for 2024–25.

The three states of Uttar Pradesh, Rajasthan, and Haryana will split equally among themselves the Rs 1,000 crore set aside for the development of the NCR.

You might also be interested in – Kisan Ki Baat: A new show to be launched by government to help farmers