Exploring Potential of Public Land Based Revenues to Finance City Infrastructure: An assessment using linear programming for Guntur Municipal Corporation

Authors

  • Prasanth Vardhan Puttaparthi School of Planning and Architecture Vijayawada, India
  • Ayon Kumar Tarafdar School of Planning and Architecture Vijayawada, India
  • Abdul Razak Mohamed School of Planning and Architecture Vijayawada, India

DOI:

https://doi.org/10.11113/ijbes.v8.n1.559

Keywords:

public land revenues, urban infrastructure investments, linear programming, revenue optimization, leasing strategies

Abstract

Municipalities are in search of exploring alternative own revenues to finance urban infrastructure investments in India. As compared to others, monetization of public land is within the functional domain of local governments subject to certain constraints. This study employs a linear programming model incorporating the constraints enforced by state government to assess the potentials of public lands for urban infrastructure capital investments. This approach is largely different from the existing literature, which does not determine the capacity of municipal public lands based on realized revenues. This investigation finds that certain proposed leasing strategies for Guntur Municipality under different simulations as done in this research have potentials to realize 240% more revenues compared to ‘business as usual’ scenario and hence, provide new policy insights for leasing public lands in a revenue optimization perspective. The framework adopted by this helps local governments to estimate the potentials of public lands and establish revenue targets.

Author Biographies

Prasanth Vardhan Puttaparthi, School of Planning and Architecture Vijayawada, India

Mr. Prasanth is an Infrastructre planner with 10 years of experience in research, industry and academics. Currently prusing Ph.D. research on the title 'lLand Resource Managment for Guntur municipality', a case of Andhra Pradesh.

Ayon Kumar Tarafdar, School of Planning and Architecture Vijayawada, India

Dr. Ayon Kumar Tarafdar (Associate Professor, Planning) completed his doctorate degree from the Norwegian University of Science and Technology (NTNU, Norway) in 2010, with the acclaimed full-time Norwegian Government Research FellowshipHe has 23 publications with international journals and publishers (ISBN/ISSN), 5 book chapters, and 13 international conference presentations (see attached CV for details). He has experience of over fourteen years in research, industry and teaching (over seventeen years if the time spent for acquiring all his educational qualifications is included).

Abdul Razak Mohamed, School of Planning and Architecture Vijayawada, India

Urban and regional planner with a basic master’s degree in Sociology, recently completed Executive Masters in e-Governance form Ecole Polytechnic, Lausanne, Switzerland. Dr. Razak has written 40 research articles in the national and international journals and about 15 international conference and 25 national conferences attended. Chapters wrote in about 10 books on Sociology, Town Planning, Environment Education, and e-Governance subjects. Wrote about 5 resource books on Research Methodology, Urban Planning and Urban Sociology, Disability and City Planning. Published number of popular news paper articles, interviews and letter to the editor are also adds to his credit. Wrote Environment Education booklets for school children and teachers on Neighbourhood, Water Conservation, Floods and Droughts, Trees in Urban Environment and Environmental Exhibits in Schools. Organized around 6 international conferences and 15 national conference on various issues.

References

Archer RW, Wu Chung-Tong (n.d.) Comments on land leasing and urban planning: Lessons from Hong Kong. Regional Development Dialogue. 15(2): 2-22.

Ballaney S; Bertaud M-A; Annez PC, Koshy CK, Nair, Bindu P, B, Phatak V, Thawakar V. (2013). Inventory of public land in Ahmedabad, Gujarat, India (English). Policy Research working paper; no. WPS 6664. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/724551468049195991/Inventory-of-public-land-in-Ahmedabad-Gujarat-India

Ding C. (2005). Land acquisition in China: Reform and assessment. Lincoln Institute of Land Policy, Working paper 05, CDI.

Farvacque C, McAuslan P, Farvacque C, PatriK. (1992). Reforming urban land policies and institutions in developing countries (English). Urban management programme policy paper; UMPP no. 5. Washington, DC: The World Bank. http://documents.worldbank.org/curated/en/257481468763516241/Reforming-urban-land-policies-and-institutions-in-developing-countries

Keshishian M. (2006). Making cities work: Assessment and implementation toolkit, PADO, USAID & Andrew Young School of Policy Studies, Georgia State University. Washington DC.

High Power Expert Committee (HPEC). (2011). Report on Indian urban infrastructure and services, Ministry of Urban Development, Government of India. New Delhi.

Lin CS, Ho PS. (2005). The state, land system and land development process in contemporary China. Annals of the association of American Geographers. 95(2): 411-436.

Lin CG, Zhang YA. (2014). Emerging spaces of neoliberal urbanism in China: Land commodification, municipal finance and local economic growth in prefecture-level cities. Urban Studies (Special Issue). 1-25.

Mathur OP. (2011). Municipal finance matters. National Institute of Public Finance and Policy. New Delhi: Asian Development Bank.

Mathur OP. (2013). Municipal finance matters - Indian municipal finance report. Technical Assistance Consultant’s Report, Asian Development Bank, National Institute of Public Finance and Policy, New Delhi.

Mckinsey G. (2010). India's urban awakening: building inclusive cities, sustaining economic growth.

Mohanty PK. (2014). Cities and public policy: an urban agenda for India. Sage Publications India Pvt Ltd., New Delhi, India. 186-216

Mohanty PK. (2016). Financing cities in India: municipal reforms, fiscal accountability and urban infrastructure (Vol. 1st Edition). New Delhi, India: Sage Publication India Pvt Ltd.

Mohanty PK, Misra BM, Goyal R, Jeromi PD. (2007). Municipal finance in India; an assessment. Study No.26, Department of Economic Analysis and Policy, Reserve Bank of India, Mumbai.

Ministry of Urban Development (MOUD). (2017). Value capture finance policy framework. Government of India.

Pan F, Zhang F, Zhu S, Wojcik D. (2016). Developing by borrowing? inter-jurisdictional competition, land finance and local debt accumulation in China. Urban Studies, 20.

Patricia CA, Gangopadhyav S. (2017). India’s public lands: responsive, transparent, and fiscally responsible asset management. IDF.

Peterson GE; Kaganova O. (2010). Integrating land financing into subnational fiscal management (English). Policy Research working paper; no. WPS 5409. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/173371468149668444/Integrating-land-financing-into-subnational-fiscal-management.

Peterson GE. (2006). Land leasing and land sale as an infrastructure-financing option (English). Policy, Research working paper; no. WPS 4043. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/133061468142165168/Land-leasing-and-land-sale-as-an-infrastructure-financing-option.

Peterson GE. (2009). Unlocking land values to finance urban infrastructure: land-based financing options for cities. Infrastructure Development Finance Company. New Delhi: Oxford University Press.

Phatak, VK. (2013.) Land based fiscal tools and practices for generating additional financial resources. Ministry of Urban Development and World Bank. New Delhi: Government of India.

Phatak VK. (2009). Charges on land development rights as a financing resource for urban development. Infrastructure Development Finance Company. New Delhi: 3i Network.

Roy B, Johannes L. (1992). Urban public finance in developing countries. New York: Oxford University Press.

Sridhar KS, Reddy AV. (2009). Land as a municipal financing Option: a pilot study from India. Public Affairs Center, Bangalore. Study Report.

Srinivasan G. (2010). Operations research: principles and applications (2nd Edition ed.). New Delhi, India: PHI Learning Private Limited.

Tao R, Su F, Liu M & Cao G. (2010). Land leasing and local public finance in China’s regional development: Evidence from prefecture level cities. Urban Studies. 47(10): 2217-2236.

Taha H. (1999). Operations research (5th Edition ed.). Singapore: Prentice-Hall International.

Thirteenth Finance Commission. (2009). Volume 1: Report. Government of India. New Delhi. https://fincomindia.nic.in/ShowContentOne.aspx?id=28&Section=1.

Yeh G-O A. (1994). Land leasing and urban planning: lessons from Hongkong. Regional Development Dialogue. 15(2): 3-28.

Downloads

Published

2020-12-29