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The debt-ridden Maharashtra government has decided to raise around ₹2 lakh crore by selling unused land located in prime locations in the city and other parts of the state.
A committee headed by DK Jain, Additional Chief Secretary (Finance), has been set up to decide on the sale of government land located at Aarey Colony here and in other places across the state.
Funds requirements
A Government Resolution (GR) of the Finance department issued on August 16 by Jain said the state was in need of ₹80,000 crore to complete irrigation projects.
The construction of the proposed Nagpur-Mumbai Super Communication Highway will need at least ₹20,000 crore to ₹40,000 crore.
As per the GR, Maharashtra will also need another ₹40,000 crore for the upgradation of existing state highways into national highways.
It further said the Maharashtra Electricity Distribution Company Ltd will need over ₹30,000 crore to reduce electricity leakage and the work will help to reduce power leakage from existing 14.5 per cent to 8 per cent.
“Huge funds are required to complete these development works and if received from any resources other than new loans, it will boost the development of the state,” Jain said.
Land monetisation
The officer said in other countries such as China, land was the main resource of raising funds for the government.
“If we concentrate on monetisation of land, there will be no need to increase taxes. It will also give relief to common people as well as industries,” he added.
The committee, which includes Principal Secretary (Revenue and Forest), Principal Secretary (UD-1), Principal Secretary of PWD and Water Resource, Secretary of Revenue, Forest, Industries, Energy and Labour departments, will make a list of unused land of various government departments and will calculate the valuation.
“It is expected that the committee will submit its report within three months and later the decision to raise the fund will be taken,” an official from the finance department said.
According to the official, over ₹2 lakh crore will be raised by selling the unused land by the government.
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