24 Using the ‘Development

Plan—Town Planning Scheme’

Mechanism to Appropriate Land
and Build Urban Infrastructure
Shirley Ballaney and Bimal Patel*

Introduction
Cities in India are facing three distinct challenges in the This chapter showcases the preparation and implemen-
development of urban infrastructure. The first challenge tation of this mechanism to deliver serviced land for urban
is to adhere to a development plan in the face of a strong expansion in the periphery of cities, which currently con-
tendency towards unplanned growth. Second, when land stitutes its most extensive use. The chapter also briefly lists
is acquired under the Land Acquisition Act, 1894, a ma- the reasons underlying the efficacy of the mechanism.
jor equity issue arises relating the disparity between those
who lose land for a given project and those who do not, The Challenge of Delivering Serviced
but are located close to the project area. This disparity Land for Urban Expansion
is due to the fact that those who lose land are not only Continuing urbanization and increasing affluence indi-
displaced, but also get compensation that does not take cate that in the coming decades, vast amounts of built
into account the potential increment in value of their space will have to be added to India’s towns and cities.
property due to the project, while those in close vicin- While some of this addition will be accommodated by
ity of the project are better off on both these counts. the densification of existing urban areas, most will have
Finally, city authorities do not have adequate resources to be accommodated by the expansion of towns and cities
to finance infrastructure and are not in a position to into the surrounding countryside. In India, the surround-
capture the incremental value of land in the absence ing countryside is hardly unutilized and usually under
of a legal and policy framework. The Gujarat Town Plan- cultivation. The agricultural landscape usually consists
ning and Urban Development Act (GTPUDA), 1976 of irregularly shaped plots in a mosaic and is rarely
provides for an effective mechanism that addresses these available in large tracts under single ownership public or
challenges through a two-stage process called ‘Develop- private. Therefore, in almost all cases, the first challenge in
ment Plan–Town Planning Scheme’ mechanism (or expanding out into the surrounding countryside involves
the DP–TPS mechanism in short), which works fairly converting a fragmented agricultural landscape into a
well in Gujarat. serviced landscape, fit for urban uses.1 This conversion has

* The authors would like to acknowledge the contribution of Mr Atul Patel, Computer-aided design technican at HCPDPM for the
drawing in the chapter.
1
European cities faced a similar challenge during the nineteenth century when, in the wake of the Industrial Revolution, cities rapidly
expanded. European responses to the problem are available in Thomas Hall, Planning Europe’s Capital Cities: Aspects of Nineteenth-Century
 Using the ‘Development Plan—Town Planning Scheme’ 191

to be on a large scale and not a plot at a time and entails Methods of Converting Agricultural Land
a number of coordinated actions by the public authority. into Serviced Urban Land
They are mentioned below.
LAISSEZ-FAIRE
• an area has to be delimited where all landowners
Given the complexity of bringing into effect a systematic
can be legally forced to accept the reorganization
and a priori conversion of agricultural land into serviced
of their holdings to make the area suitable for urban
urban land in the jurisdictional and administrative con-
use;
text of India, most Indian cities have adopted a laissez
• landowners have to be identified, their holdings estab-
faire approach. Urban development, led by landowners or
lished, and processes put in place for communicating
developers, is allowed to creep out into the surrounding
with them;
countryside—a plot or a layout at a time. Usually, a blind
• irregularly shaped plots have to be reshaped in a more
eye is turned to such creeping urbanization. Sometimes, a
suitable manner for building modern buildings on
minimal attempt is made to plan or regulate the develop-
them; land has to be appropriated for providing a
ment and to levy charges. Once an area is built up and if
number of common infrastructure facilities, for exam-
the residents are able to bring sufficient political pressure
ple, streets, water supply, drainage, electrical facilities,
to bear on the administration, rudimentary infrastructure
public transport, parks, schools as well as for meeting
facilities such as streets, water supply and drainage are
social and cultural objectives, for example, housing for
provided to the extent that it is physically possible. Let-
the poor and museums;
ting things be is easy, it requires little foresight and effort
• the infrastructure and amenities have to be planned
on the part of public authorities.2
and built;
• all the above including infrastructure and amenities
LAISSEZ-FAIRE WITH MINIMAL PLANNING
have to be paid for; ideally the administrative, capital
and operations, and maintenance costs for all of the This is a variation on the laissez faire approach where an
above should be financed by capturing the increment in attempt is made to ensure that, in the midst of creeping,
land value arising as a result of the transformation. This haphazard urban expansion, at least a ‘right of way’ is left
requires the increment in land value to be estimated in open for subsequent provision of trunk infrastructure. The
a fair and consistent manner; manner in which this is done is as follows. The right of
• ideally the above should be achieved through a con- way sought to be left open is drawn up in a statutory city-
sensual process with minimal use of coercion. It is, wide development plan in the form of a network of major
therefore, necessary to co-opt the landowners into the roads in the periphery of the city, where it is expected (or
transformation and note their opinions, suggestions, zoned) to grow.3 Land for building the network of roads
and objections. It is also necessary to establish a due is forcefully appropriated using the Land Acquisition
process for redressing their grievances; and Act. Even though the very drawing up of roads in the
• lastly, once a serviced urban landscape has been created, statutory plan results in raising land prices in the areas
it is necessary to regulate private development on adjacent to the roads, no attempt is made to charge the
plots to ensure that development is harmonious and cost of building roads to those areas. Roads are built
consistent with the planning objectives for the area and usually after development takes place in the vicinity of
the infrastructure provided. the roads. Development, which usually takes place in a
creeping (plot-at-a-time) haphazard manner, is sometimes
It is clear that managing all of the above actions in regulated to enable the collection of development charges.
a time-bound and coordinated manner poses a truly However, there is usually no systematic attempt to assess
formidable technical, administrative and legal challenge. and levy betterment charges.

Urban Development, 1997. With ample non-agricultural land available for urban expansion, cities in the United States could respond very
differently; see John W. Reps, The Making of Urban America: A History of City Planning in the United States, 1965.
2
It can be argued that though the laissez faire approach results in a sub-optimal solution, it is better than a forceful administration
totally thwarting city expansion. As the Chinese, Cuban, and South African experiences have shown, forcefully thwarting city expansion
can impose high social and economic costs and lead to build up of pressures that eventually require drastic corrections.
3
More ambitious development plans also draw up and reserve land for social amenities such as parks and schools in the areas zoned for
expansion. For our purpose here, no distinction needs to be made between land reserved for roads and for other facilities.
192 India Infrastructure Report 2009

Land reserved for roads, and therefore condemned for finance for building infrastructure remains a major issue.
acquisition, is often encroached upon, usually with the This is in contrast to the windfall profits that accrue to
full support of owners of such land for whom this is often landowners whose land is not reserved.4 In addition to this,
more beneficial than receiving compensation in lieu of haphazard development forces subsequent provision of
acquisition. If the land is actually acquired, availability of subsidiary infrastructure to be sub-optimal or inefficient.

24.1a: Laissez-faire Development 24.1b: DP + Laissez-faire Development

24.1c: Land Acquisition + Development 24.1d: Private Townships

Figure 24.1: Methods of Converting Agricultural Land into Serviced Urban Land
Source: Fig. 24.1a and 24.b—Google Earth; Fig. 24.1c—EPC and Fig. 24.1d—GUDC.

4
Urban development planning of this type generates vicious politics between owners whose land is reserved and who stand to lose
much and other landowners in the vicinity who stand to gain much. Such a mode of planning has done much to spur corruption and
undermine the very idea of city planning.
 Using the ‘Development Plan—Town Planning Scheme’ 193

PUBLIC LAND DEVELOPMENT AGENCIES PRIVATE TOWNSHIP DEVELOPMENT

A number of cities have constituted powerful public Today, with the increased pace of development and higher
land development agencies, which are charged with the aspiration levels, it has become clear that alternatives to
responsibility of providing serviced land for urban expan- haphazard laissez faire development and ineffective pub-
sion. Such agencies are empowered to make statutory lic agencies are urgently required. There is also a greater
city development plans, prepare detailed plans for plot- willingness to experiment with market mechanisms and
ting areas, and design and provide them with social and to partner with the private sector. On account of this, a
physical infrastructure. They have the muscle to forcefully number of state governments are announcing ‘Township
acquire peripheral land using the Land Acquisition Act Policies’.7 Here, private developers are encouraged to pri-
and to raise finances for building infrastructure.5 When vately assemble agricultural land in the countryside, wher-
developed, plots are sold at market prices to defray devel- ever they think it is viable to develop serviced urban land
opment costs. or land and buildings (‘townships’). Government support
Though this seems an effective approach which gives is provided in a number of ways. Some states help with
very high flexibility to envision, plan, and build new land acquisition. Others only promise regulatory support;
urban areas, in practice however, the functioning of public re-zoning of the land in statutory development plans, and
land development agencies has been far from sterling, and quick ‘singe-window’ approvals. Most assist by providing
today the approach is widely considered to be unviable.The connectivity to existing infrastructure. Developers are
fundamental problems with this approach are as follows. expected to privately raise finances and invest in build-
First, this approach seeks to transfer more or less the entire ing infrastructure and/or buildings. Though a number
increment in land value resulting from the urbanization to of township policies have been announced, considerable
the public agency. By dislocating and dispossessing those confusion continues to prevail and it seems to be too early
whose lands are acquired, this approach imposes very to say how this mode of land conversion will play out in
high tangible and intangible costs on them. Slowly, as the long run.
landowners (farmers) in areas surrounding cities wizen up
to this, it becomes politically more and more difficult and THE DEVELOPMENT PLAN AND TOWN
economically more and more costly to acquire vast tracts PLANNING SCHEME MECHANISM
of agricultural land.6 Second, because the agency enjoys a This mode of developing serviced urban land from
monopoly, there is no mechanism to ensure its efficient agricultural land evolved during the early twentieth
functioning and has no reason for it to heed the nature of century in the erstwhile Bombay State Presidency. Today
demand. Serviced land provided by such agencies tends to it is used only in Gujarat. It is a two-stage process which
be costly and unaffordable for vast sections of the urban is defined in the GTPUDA, 19768 a macro-planning
population, either because of operational inefficiencies stage and a micro-planning stage. First, the Development
or because of the adoption of unaffordable planning and Authority9 of a town or city draws up a statutory, decadal
engineering standards. Third, the opaque structure of development plan (DP) for the town or city as a whole;
public land development agencies, combined with vast showing where the city is expected to expand into the
flows of finance, has turned such agencies into unwieldy surrounding countryside. In these new expansion areas,
behemoths, also widely considered to be highly corrupt. which are usually a mosaic of agricultural plots, the network

5
The Delhi Development Authority is the best example of such an agency. This strategy was precisely used in building new towns such
as Chandigarh, Gandhinagar, and Bhuvaneshwar. Here however, the objective of providing land for urban expansion was complemented
by objectives of identity politics; see Ravi Kalia, Chandigarh: In Search of an Identity, 1987.
6
City Planning, when combined with this implementation approach, has also contributed to a vitiated politics surrounding city
planning and done much to discredit the very notion of city planning.
7
Townships are analogous to Special Economic Zones (SEZs) and the distinctions are insignificant for our purpose here.
8
This Act was a revision and extension of the Bombay Town Planning Act, 1954, which was based on the even older Bombay Town
Planning Act of 1915. The 1976 Act has also been subsequently refined. The latest amendment was made in 2000.
9
The Development Authority is also constituted (or designated) under the provisions of the GTPUDA, 1976. The Act provides a
completely integrated framework for defining an agency, empowering it to plan, and providing it a mechanism to implement its plan.
The GTPUD Act 1976 is administered by the Urban Development and Urban Housing Department, and therefore, Development
Authorities report to it.
194 India Infrastructure Report 2009

Figure 24.2: Sequence of Town Planning Schemes in the Ahmedabad Development Plan
Source: Environmental Planning Collaborative (EPC).

of major roads and routes for trunk infrastructure is also reconstitution, infrastructure development, and financing
drawn up.10 In the second stage, the expansion area is then proposal rolled into one.
divided into a number of smaller areas usually between 1
and 2 sq km each. Figure 24.2 shows agricultural areas The Process of Preparing a TPS:
surrounding Ahmedabad zoned for urban expansion and An Example11
delineated into a quilt of smaller areas. The Development The process of preparing a typical Town Planning Scheme
Authority then, in a phased manner, takes up each in the periphery of the city is being focused upon here. The
of these smaller areas for the development of a Town example used is TPS No. 90 Vinzol 2 12 in Ahmedabad.
Planning Scheme (TPS) there, which is a detailed land The area of this scheme, measuring 82 ha and consisting
10
The Development Plan is supposed to be a comprehensive strategic document for the development of the city. It is expected to address
a variety of city-wide issues besides growth management in the periphery, for example, zoning and infrastructure development in the
existing areas, urban transport and policies for issues such as heritage protection, economic development, and environmental protection. Its
preparation also allows for limited public participation. What concerns us here is growth management at the periphery.
11
This section is based on a paper by Shirley Ballaney, The Town Planning Mechanism in Gujarat, India 2008.
12
Prepared for Ahmedabad Municipal Corporation (AMC) by EPC Development Planning and Management Pvt Ltd (EPCDPM),
Ahmedabad.
 Using the ‘Development Plan—Town Planning Scheme’ 195

of 80 separate plots of land around Vinzol village in the the TPS, most of the land was vacant with Vinzol village
southern periphery of Ahmedabad, was zoned for urban within it.
expansion in the Ahmedabad Urban Development
Authority’s Development Plan prepared in 1999. Being SURVEYING, PREPARING THE BASE MAP, PLANNING,
close to the Mehmedabad Highway and the Sardar AND ESTABLISHING BONAFIDE OWNERSHIP
Patel Ring Road, it was envisaged that the area would Surveying the Area
come under intense growth pressure from surrounding At the outset the area over which a TPS is to be planned
industries. As Figure 24.3 shows, in the north the TPS is is surveyed in detail. Various topographic features, build-
bounded by the Khari river, on the west by the Mumbai- ings, structures, trees, fences, infrastructure, etc. are
Ahmedabad Railway line, and on the east and south by marked including all private possessions that may have
other town planning schemes. At the time of preparing to be compensated for when the plan is implemented.

Box 24.1
Town Planning Scheme in Practice:
A Case Study of Sardar Patel Ring Road in Ahmedabad
B.R. Balachandran
The Ahmedabad Urban Development Authority (AUDA) published the Revised Development Plan for Ahmedabad in 1997. In
this plan, a ring road was proposed around the urban agglomeration of Ahmedabad. During the period of response from the
public, AUDA received thousands of objections from owners of land along the proposed ring road alignment. After some serious
introspection, AUDA came up with a revised proposal which was published in 1999 and sanctioned in 2002. The revised proposal
received very few objections. The publication of the revised proposal was accompanied by an initiative for implementation, which
has few parallels in the country.
The proposed ring road was about 76 km long and 60 meters wide. Typically, the Right Of Way for such roads is appropriated
using the land acquisition method. However, AUDA decided to use a combination of minimal land acquisition and an extensive
use of the TPS mechanism. This requires some explanation. There are primarily two processes adopted by the Gujarat government
for appropriation of land for development purposes—Land Acquisition and Land Pooling. Land Acquisition is carried out under
the Land Acquisition Act (LAA), whereas Land Pooling is carried out using the provisions relating to Town Planning Schemes
in the Gujarat Town Planning and Urban Development Act (GTPUDA). While the LAA can be used in both urban and rural
areas, land pooling is applicable only in an urban area: to be more precise, in a Development Area designated under the provisions
of GTPUDA.
The LAA enables the government to acquire privately owned land for a bonafide public purpose. While the government can
initiate land acquisition for a public purpose directly through the LAA, the process can also be initiated through the provisions of
other legislations such as the Gujarat Industrial Development Act (GIDA) or the GTPUDA. For example, if the land was required
for an industrial estate to be established by the Gujarat Industrial Development Corporation (GIDC), then the acquisition process
would be initiated through the relevant provisions of GIDA. If the land was required for development of a major urban road,
proposed in a Development Plan sanctioned under GTPUDA, then the acquisition proceedings would be initiated under the
relevant provisions of that Act. In any land acquisition process, the Government retains the option of a negotiated purchase subject
to conditions that ensure a reasonable price.
At the time of publishing the revised Development Plan itself, AUDA had tentatively delineated Town Planning Schemes all along
the alignment of the proposed Ring Road. Soon after, AUDA initiated an outreach programme and contacted all the landowners
affected by the ring road and those owning land in the surrounding area. The AUDA explained the TPSmechanism to them and
offered the opportunity to participate in the benefits of building the ring road by undertaking these schemes along the length of the
Ring Road, on either side of the alignment. Most of the farmers owning the land agreed to the scheme. A large portion of the ‘Right
of Way’ (RoW) was handed over by the farmers to AUDA on mere verbal assurance. The preparation of the TP Schemes and all the
documentation followed later.
Land in approximately 1 km wide belt along the Ring Road was reorganized, creating this road. The original landowners got back
land amounting to more than 60 per cent area of their original land holding in locations very close to, if not overlapping their original
holdings. Minimal development rights were provided to the properties under the land use zoning proposed in the development plan.
As a result, today, one can see large numbers of farmhouse layouts along the Ring Road. While substantial amount of the land in the
area has changed hands after the implementation of the Town Planning Schemes, many original owners have retained their lands.
Not only that, the original owners were also able to reap the benefits of the land value appreciation that happened as a result of the
Ring Road construction as well as implementation of the TPS.
196 India Infrastructure Report 2009

Figure 24.3: Location Map of TPS 90 Vinzol 2

Figure 24.4 shows the physical features surveyed and a Establishing Boundaries of the TPS
Base map for TPS 90 Vinzol 2. The boundary of the TPS is now clearly marked on the
base map. Planning considerations, physical features, and
Compiling Land Ownership Details
other administrative boundaries are taken into considera-
While the area is being surveyed, existing cadastral maps tion while doing this. At this juncture, the intention to
and records are obtained from the relevant office of the prepare a TPS for the area is published in local newspapers.
Revenue Department and compiled in a prescribed for- This is the first stage at which the Authority is required to
mat. Name of the owners, plot area, type of tenure, and inform landowners. Figure 24.5 shows the boundary of
encumbrances on the land are compiled. While preparing the TPS.
the TPS, the tenure and encumbrances on a plot remain
unaffected. Marking Original Plots on the Base Map
Development a new plan for the area begins by clearly
Preparing a Base Map identifying ‘Original Plots’ (OPs) on the base map and
The detailed ground survey and existing cadastral maps giving each a serial number referred to as the OP number.
are collated to prepare a ‘Base Map’. Discrepancies At this stage, contiguous plots held by the same owner
are resolved in favour of the plot area in cadastral are consolidated as single OPs, and this simplifies sub-
records unless a portion of the plot has been acquired sequent planning and reduces land fragmentation. The
or has been sub divided/amalgamated and the records map showing the OPs is referred to as the OP Plan in
have not been updated.13 By custom, the base map Figure 24.5.
prepared by the Development Authority is approved
Planning Roads
and authorized by relevant officers of the Revenue
Department. Figure 24.4 shows the base map for the TP Any major (city-level) roads, already indicated in the DP
Scheme. (see 3.5 above) and passing though the TPS area are first
13
For example, if a plot owner has encroached upon a neighbour’s plot and thus the plot appears larger than what the record shows, the
boundaries of the plot are corrected in the base map to truly reflect the area in the record.
 Using the ‘Development Plan—Town Planning Scheme’ 197

Figure 24.4: Physical Features Surveyed and Base Map for TPS 90 Vinzol 2
Source: EPC Development Planning and Mangement (EPCDPM)

Figure 24.5: TPS area with the Boundary and OP Plan

Source: EPC Development Planning and Management (EPCDPM).
198 India Infrastructure Report 2009

drawn up on the OP Map. Following this, the subsidiary Tabulating Ownership and Original Plot Details
road network is designed and drawn up. While doing this, The ‘F Form’ as it is called, shown in Figure 24.7, is the
the planner has to envision the future urban character of key statutorily prescribed format in which operative infor-
the area and keep a number of issues related to planning, mation regarding the TPS is tabulated. First, ownership
transportation, and urban design in mind. Efficiency of details of each OP are tabulated, followed by its area (see
the road network (that is, proportion of the land used up Figure 24.7A). Based on available land sales data from
for the road network) is also a key parameter governing within the TPS area, each OP’s value is estimated and
the design of the network of roads. Figure 24.6 shows the tabulated. While doing so, increments in value, expected
road network for the TPS. on account of the implementation of the TPS, are not
taken into consideration.
Plots for Public Use
Following determination of the road network, plots for ESTIMATING THE COST OF DEVELOPMENT,
a variety of public uses such as schools, parks, health
VALUATION, AND COMPUTING BETTERMENT CHARGES
facilities, and housing for economically weaker sections
are drawn up. Increasingly, plots are also being set aside Tabulating Final Plot Sizes
for the Development Authority’s land bank14—to be sold At this stage, the total land area used up for roads and plots
to raise finances for infrastructure development. A key for public uses is calculated as a proportion (percentage)
design concern at this stage is to keep the total proportion of the total land area of the TPS. This is a key figure
of land allotted for public plots within the prevailing usually predetermined. Each OP’s area is reduced by this
norm. Figure 24.6 shows the road network and amenity proportion and tabulated as the area of the ‘final plot’
plots in the TPS. (FP) to be allocated to each OP holder. In other words,

Figure 24.6 Road Network and Amenity Plots in the TPS

Source: EPC Development Planning and Management (EPCDPM).

14
This being a relatively recent practice, a clear policy for use of land banks has not emerged as yet. The Ahmedabad Urban Development
Authority has begun auctioning such plots to raise finances for infrastructure development.
 Figure 24.7: F Form
Form F (Rule 21 and 35)
Draft Town Planning Scheme No. 90 (Vinzol–2), Ahmedabad, Redistribution and Valuations Statement
The Gujarat Town Planning and Urban Development Act–1976
No. Name of the Owner Tenure Survey Original Plot Final Plot Contribut- Incre- Contri- Addition Net Rema-
ion(+) ment bution to (+) demand rks
No. No. Area in Value in Rupees No. Area in Value in Rupees Compensa- Sec. Sec. or from
tion(–) 78) 79) deduc- (+) or
Without Inclusive Undeveloped Developed under Column 50% tion by (–)
reference to of Without Inclusive Without Inclusive Sec. 80 10(a)– of from (–) owner
value of structure reference to of reference to of Colmn Colmn Colmn Contri- being
structures value of structure value of structures 9(b)- 9(a) 12 bution the
structures structures Column to be addition
6(b) under of Col-
other umns 11,
sec. 13, 14
1 2 3 3(a) 4 5 6(a) 6(b) 7 8 9(a) (9b) 10(a) 10(b) 11 12 13 14 15 16
1 Karshanbhai Gandabhai, 457/ 1 21904 547600 547600 1/1 6133 328572 328572 2821208 6150872 –2190028 5822300 2911150 2692122
Ramanbhai Jeevanbhai Paiki 1/2 7010 3329665
13143 6150872
2 Gajaraben wd/o Punjali RT 373 2 4755 118875 118875 2 2853 71329 71329 1355246 1355246 –47546 1283918 641959 594413
Sartanji, Gitaben d/o
Punjaji or Collector,
Ahemdabad for GOG
3 Gauchar, Vinzol Gram 374 3 1416 111275 111275 3 2670 66762 66762 1228416 1228416 –44513 1161654 580827 536314
Panchayata 375 3035
4451
4 Keshavlal Ishwarlal, 372 4 3845 96125 96125 4 2307 57677 57677 1107403 1107403 –38448 1049726 524863 4866415
Baldevdas Ishvarlal
5 Prafull Harishankar and 614 5 6576 240275 240275 5 5767 144172 144172 2912264 2912264 –96104 2768093 1284046 1287943
Bhikhaji Manuji V.K. of 371 3035
Lalji Maharaj, Samarsang 9611
Ramsingh, Anilkumar
Shankarlal
6 Prafull Harishankar and RT 370/1 6 17705 531150 531150 6 10623 286828 286828 5598453 5598453 –244322 5311625 2655813 2411490
Bhikhaji Manuji V.K. of 370/2
Lalji Maharajm Samarsang
Ramsingh, Anilkumar
Shankarlal Mahipatsang
Manuji or Collector,
Ahemdabad of GOG
7 Bharatsingh Raghuji, RT 369 7 6779 169475 169475 7 4069 101715 101715 1932585 1932585 –67760 1830870 915435 847675
Virubhai Raghuji or
Collector, Ahemdabad
of GOG
(A) (B) (C)
Fig. 24.7 (Contd.)
Fig. 24.7 (Contd.)

1 2 3 3(a) 4 5 6(a) 6(b) 7 8 9(a) (9b) 10(a) 10(b) 11 12 13 14 15 16

8 Waste Land of Talav, 363 8 81241 2031025 2031025 8 81241 2031025 2031025 2031025 2031025 0 0 0 0
Vinzol Gram Panchayata
9 Hamantsang Jesangji or RT 368 9 2833 70825 70825 9 1700 42491 42491 807324 807324 –28334 764834 382417 354083
Collector, Ahemdabad
for GOG
10 Yashvant Kanjibhai, RT 367 10 12039 421860 421860 10 8438 295317 295317 4218810 4218810 –126543 3923493 1961747 1835203
Jashvant Kanjibhai,
Raisang Kanjibhai,
Jitubhai Kanjibhai,
Chinubhai Kanjibhai,
Laljibhai Kanjibhai,
Sajanben Kanjibhai, or
Collector, Ahemdabad
for GOG
11 Bharatsingh Raghuji, 618 11 9004 425229 495220 11 5403 162078 162078 2755321 2755321 –333142 2593243 1296622 963479
Virubhai Raghuji,
Bhikhabhai Manuji or
Bank of India
12 Private Property of Ramsangji, 617 12 809 52585 52585 12 485 26685 26685 259571 259571 –25900 232886 116443 90543
Jesangji V.K. of Nikanth
Mahadev or
Ambalal Chaganlal
13 Mahipatsingh Manuji 624 13 5463 273150 273150 13 3278 163884 163884 1704394 1704394 –109266 1540510 770255 660989
14 Arjanbhai Phuljibhai, 619 14 9409 517495 517495 14 5645 310479 310479 2935436 2935436 –207016 2624958 1312479 1105463
Gajaraben Mobatsang,
Udiben Mobatsang,
Bhikhabhai Mobatsang,
Manvaben Mobatsang
15 Javansingh Amarsang, 621 15 2833 118986 118986 15 1699 71372 71372 861565 861565 –47614 790193 395097 347483
Udaising Amarsang
16 Ramjibhai Motibhai and 366 16 1922 57660 57660 16 1153 46129 46129 570849 570849 –11531 524720 262360 250829
Dhiruji Aluji V.K. of
Nilkanth Mahadev Temple
17 Javansingh Amarsingh, 365 17 1619 5665 56665 17 971 33992 33992 471027 471027 –22673 437036 218518 195844
Udaising Amarsing or
Gujrat State Co. Op. Bank
(A) (B) (C)

Notes: (A) Indicating Ownership, Original Plots and Original Plot Values;
(B) Indicating the Final Plot Values; and
(C) Indicating the Compensation and Betterment Charges.
 Using the ‘Development Plan—Town Planning Scheme’ 201

each OP holder gets a smaller FP. The percentage of land impact development, etc. The compensation for the land
deducted from each OP is the same as the percentage of appropriated is now calculated. The compensation to be
land of the TPS used up for roads and plots for public uses. paid to each landowner is the difference between the
Thus, each landowner contributes the same proportion of product of ‘OP value and OP area’ and ‘SF value and FP
his land for the creation of public facilities. area.’

Delineating Final Plots Estimating Cost of Infrastructure and the TPS

After road and amenity plots are drawn up and sizes of The TPSs infrastructure is designed and its cost is esti-
FPs tabulated, they are designed and drawn up. At this mated. Prevailing norms are followed to set engineering
stage, the planner has to envision the future character standards. Infrastructure normally includes roads, street
of the area and reshape each of the plots. As far as it is lighting, water supply and sewerage, and storm water
possible, the FP is allotted in the same location as the OP; drainage. Next, the total costs of the TPS are worked out.
and the OP is trimmed to make it smaller. Figure 24.8 Apart from the cost of infrastructure, these include com-
shows a drawing of the proposed road network, amenity pensation to be paid to each landowner, administrative,
plots, and the FPs. and legal costs involved in preparing and implementing
the TPS.
Tabulating Semi-final Values and
Computing Compensation Establishing the value of FPs and
The process of valuation is continued further. A semi-final Computing Betterment Charges
(SF) value is ascribed to each FP. Usually, this is the same The total cost of the TPS is divided by the total land that
as the OP value. In some instances, however, there can be is given as FPs. This gives the cost of development per
a marginal change in the value of the OP—it may increase unit area of land, which is then to be loaded on all FPs
or decrease owing to the planning proposals such as zone with some consideration to location-related advantage.
changes, changes in plot shape, changes in the plot size, The value of the FP is the sum of the cost of development
certain development control regulations, a substantial shift and the SF value. Figure 24.7(B) shows the F Form at this
in plots, and proximity to features that may negatively point. Next, the total increment or increase in the value

Figure 24.8: Delineation of Final Plots in the TPS

Source: EPC Development Planning and Management (EPCDPM).
202 India Infrastructure Report 2009

for each plot of land is worked out. This is the product modifying the TPS as he sees fit, finalizing it, overseeing
of both FP value and FP area. The GTPUDA stipulates actual demarcation of the reconstituted plots, and handing
that about half of the increment can be taken by the over possession of TPS plots to land-owners. On account
Development Authority to finance the cost of works and of this, TPOs are required to be technically competent,
administrative expenses of preparing the TPS. Taking 50 and by custom, are selected from the pool of urban plan-
per cent of the increment in the land value from each plot ners available with the stategovernment.
and deducting the compensation to be paid for the land
appropriated, the net demand or betterment charges are Hearings by the TPO and Modifications
estimated. With this, the F Form is complete. Figure 24.7 Three individual hearings are given to each landowner
(A+B+C) shows the final F Form. in the TPS. The first two hearings focus on physical pro-
posals of the TPS, landowners are individually notified
PUBLIC PARTICIPATION AND CONSENSUAL regarding the opportunity to be heard and submissions
DECISION-MAKING or presentations are duly recorded in writing. The TPS is
modified twice and referred to as the ‘Preliminary TPS’.
Meeting of Landowners
Notice of ‘Award of the Preliminary TPS’ is published in
At this stage, a public meeting of landowners is called to local newspapers and the TPS is once again sent to the
present the draft TPS proposal and to solicit their opinions state government for its approval. After grant of approval,
and objections, if any. A Notice inviting all owners to it is referred to as the ‘Sanctioned Preliminary Scheme’.
attend the meeting is published in the newspapers. The This implies that the Development Authority now owns
meeting is held in a public venue and is conducted by all plots for public use. The TPO undertakes a third set of
the urban planning staff of the Development Authority. individual hearings at this stage, which are focused solely
The objective of the meeting is to clarify the procedures on financial issues.
and proposals of the TPS and to build consensus.
Finalizing the TPS
Modifying the TPS and Appropriating
Land for Roads Based on the hearings and on any clarifications or
opinions sought by him from the state government, the
Based on objections and suggestions raised during the
TPO makes final modifications to the financial proposals
landowners’ meeting and on written objections and sug-
of the Scheme. The TPS, thus modified, is referred to as
gestions sent in by individual owners, the Development
the Final TPS, which is notified as the ‘Award of the Final
Authority subsequently modifies the TPS. Modifications
TPS’ in the local papers. Appeals against the Final TPS
are aimed at ensuring that all ‘reasonable’ objections are
can only be made in the Board of Appeals constituted for
addressed. The modified TPS is sent to the state govern-
the purpose by the state government. Once appeals are
ment for approval. At this stage, it is referred to as the
resolved, the state government is required to sanction the
‘Draft TPS’ and upon approval, it is referred to as the
Final TPS within three months.
‘Sanctioned Draft TPS’. After sanction, the Development
Authority can take physical possession of the land desig- Why does the Two Stage DP–TP
nated for roads.
Mechanism Work?
Appointment of the Town Planning Officer Anyone trying to first understand the two stage DP–TP
On approval of the Draft TPS, the state government mechanism15 invariably finds it to be complicated, tedious,
appoints a quasi–judicial officer called a Town Planning unwieldy, long, and ultimately unusable. Indeed, it is a
Officer (TPO) to finalize the Sanctioned Draft TPS. tedious process. Many reforms are urgently necessary.16
The TPO is supposed to systematically and individu- However, even with all its flaws, it has been and remains
ally hear each landowner on concerns regarding physical a very effective planning, infrastructure development,
attributes of the final plot, compensation, and better- financing, and implementation tool and the best argument
ment charges being levied. The TPO is responsible for in its favour is simply that it works. This can be clearly

15
As explained above, this is the how the process whereby a city-wide development plan is followed by a number of smaller area TP
Schemes is locally referred to.
16
The authors have recently completed a detailed, World Bank- funded study of urban land management and planning in Gujarat for
the Urban Development and Urban Housing Department of the state government, ‘Streamlining Urban Planning and Land Management
Practices, 2008’, which identifies key institutional and legislative reforms required to improve the Development Plan and TPS processes.
 Using the ‘Development Plan—Town Planning Scheme’ 203

seen in that the DP–TP Mechanism has been used for Gujarati pragmatism, to the extent that it really exists,
managing Ahmedabad’s growth over the last century, on may well make it work better or faster. In our view, success
account of which the city not only has an effective road of the DP–TP mechanism results from the following:
network but manages to build infrastructure before urban
1. The DP–TP mechanism is specified in robust-
expansion takes place in the periphery.
enabling legislation. The GTPUDA’s roots can be
Managing urban expansion in the periphery of cities
found in the Bombay Town Planning Act of 1915.
is only one use to which the DP–TP mechanism can be
It has been continually improved, and by now, is well
put. Considered in abstraction, it can easily be seen that
tested in court. Further reforms are underway.
the DP process is a powerful strategic planning tool and
2. The mechanism promotes and enables the Develop-
that the TPS process is a general purpose techno-legal
ment Authority to think and plan at both the macro-
mechanism for delimiting an area and, within it:
level and at the micro level. The bane of a lot of
• reconstituting properties; infrastructure planning is a geographically focused
• appropriating land; view. The DP–TP mechanism requires planners to
• levying charges for infrastructure provision and for think at a city- wide level and then allows them to
other costs; undertake very detailed planning.
• levying betterment charges; 3. This mechanism is a spatial planning tool that promotes
• formally informing landowners of proposed plans; a comprehensive approach. When developing a spatial
• compensating dispossessed landowners; plan, a planner is forced to simultaneously deal with
• seeking a majority consent and recording their sugges- all the complexities of an urban area—roads, variety
tions and objections; and land uses, buildings, infrastructure, traffic, rights of
• for empowering quasi-judicial officers for redressing way, and so on. Thinking in a sector-based engineering
grievances. fashion in the urban context and not anticipating
how one piece of infrastructure is linked with the rest
The ‘Town Planning Scheme’ mechanism is, there- and how all the infrastructure connects with living
fore, a powerful and well-coordinated statutory tool for environments in an area is often the main reason why
simultaneously preparing a detailed land appropriation, projects fail.
land readjustment and infrastructure-building plan, a 4. This mechanism is simultaneously one of planning
mechanism for financing and implementing the plan, and implementation. Not only does it allow the
and a mechanism for involving landowners in the process. Development Authority to plan on paper, but also
Being a general purpose mechanism, it can and has been provides it tools to raise finances, distribute cost,
used for addressing a variety of urban land appropriation appropriate land and implement its proposals. Moreo-
and infrastructure provision problems. Just in the last dec- ver, it provides considerable flexibility since costs and
ade, it has been used, for example, to reorganize properties benefits can be valued and allocated in the form of
to build new roads within the extremely dense-walled city land, location, money, or development rights.
of Bhuj after the 2001 earthquake; to appropriate approxi- 5. It enables coordination across an array of very dif-
mately 4 sq. km of land to build a 60 m wide and 76 km ferent tasks. No doubt, in the absence of such a
long ring road circling Ahmedabad17; to appropriate 150 mechanism, many of the tasks described above—to
ha of land for an educational campus near Gandhinagar18; transform peripheral agricultural land for urban
and to finance and build infrastructure while regularizing use—can be accomplished using existing legislations.
a swathe of irregular construction.19 Private property can be appropriated using the Land
The real question is not whether the versatile DP–TP Acquisition Act. Land for low-income housing can be
mechanism works. Nor is it whether it should be exten- appropriated using the Land Ceiling Act. Municipal
sively used or not. The interesting question is: why does legislation allows levying of betterment charges. Rev-
the DP–TP mechanism work? Most people attribute the enue laws specify mechanisms for reordering property
success of this method to Gujarati pragmatism. While holdings. However, it would be extremely difficult to
17
Shirley Ballaney, ‘A Participatory Approach to Creating Urban Infrastructure’ Sardar Patel Ring Road, Ahmedabad, 2003.
18
TPS No. 19, Raysan Randesan and TPS 20 Koba, prepared for the Gandhinagar Urban Development Authority, prepared by EPC
Development Planning and Management Pvt Ltd (EPCDPM).
19
TPS No. 97, Naroda North, prepared for Ahmedabad Municipal Corporation, prepared by Environmental Planning Collaborative
(EPC).
204 India Infrastructure Report 2009

work with such disparate laws. A number of differ- the planning process and their grievances are heard
ent authorities and departments would have to work and redressed.
in tandem while being governed by both different 10. Ultimately, the mechanism works because it is widely
government departments and legal clocks. Moreover, perceived to be fair and equitable.
many of these legislations are widely considered to
be clumsy, outdated, impractical, and unfair. Solv- Summary and Conclusions
ing complex urban problems requires a single legal To sum up, the chapter strategically highlights that the
mechanism, under a single control, working towards Gujarat Town Planning and Urban Development Act
a single objective. (GTPUDA), 1976 provides for an effective two-stage
6. The DP–TP mechanism is simultaneously a techni- techno-legal process for urban planning and implementa-
cal and legal mechanism. Speaking in more broader tion through the ‘DP–TP Scheme’ mechanism. The first
terms, it is simultaneously a technical and a govern- stage involves preparation and ratification of a strategic,
ance mechanism. Using it requires paying attention city-wide Development Plan. The second stage involves
to both technical issues such as engineering, finance, preparation and implementation of one or more TPSs
and urban design and governance issues such as to realize proposals of the Development Plan. This stage
deliberative decision making, consensus building, and is quite elaborate and involves a wide range of activities
redressal of grievances. such as delimiting an area, and within it, reconstitut-
7. This mechanism is relatively inexpensive. Land does ing properties, appropriating land, levying betterment
not have to be paid for and infrastructure, planning, charges to finance infrastructure provision, compensating
administrative (and indeed all other) costs can be dispossessed landowners, formally informing landowners
realized from the increments in land value. The of proposed plans, seeking a majority consent and record-
Development Authority can be simply a ‘no-profit- ing their suggestions and objections, and empowering
no-loss’ facilitator. quasi-judicial officers for redressal of grievances. The TPS
8. The mechanism works because professionally com- process is thus a powerful and well-coordinated statutory
petent urban planners are available and because they tool, which involves not only a detailed land appropria-
have a relatively strong and institutionalized role for tion, land readjustment, and infrastructure development
city planning in the local government. plan but also a mechanism for financing and implement-
9. A profoundly pragmatic political approach underpins ing the plan, thus involving the landowners in the proc-
this mechanism. Property rights are respected, costs ess. There is evidence that the use of this mechanism to
are distributed, and all owners lose the same propor- appropriate land can be a more effective instrument than
tion of land. Benefits are shared and owners keep a the process defined by the Land Acquisition Act, 1894.
substantial portion of developed land and increment This mechanism, which currently works as an instrument
in land value. Planning seeks to use the land market of only town planning, can potentially, be used for other
and not thwart it. Landowners are kept involved in infrastructure projects as well.

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