http://timesofindia.indiatimes.com/business/india-business/Government-plans- to-sell-surplus-land-to-ease-fiscal-crunch/articleshow/16647260.cms
NEW DELHI: The Centre is ready with an ambitious plan to sell surplus government land to generate cash to ease financial pressures, as suggested by the Vijay Kelkar committee on fiscal consolidation. A Cabinet note prepared by the finance ministry within days of the Kelkar panel submitting its recommendations says that proceeds from the sale or lease of surplus land, seen as a non-performing asset, would be used only to repay loans or create capital assets that will generate recurring revenue. The upfront statement of objective is apparently a counter to any criticism that the government is selling family silver to feed its populist policy impulse. The proposal virtually lays down the policy that outright sale of land is to be preferred over other modes of earning cash from it - like lease and licensing. The government says that land leases are a losing proposition since the rental is out of sync with market value. Also, regaining possession of land after expiry of lease is a tough act.