West Bengal FM says urban land ceiling law 'has to go'
Finance Minister Swapan Dasgupta calls for scrapping the 1970s urban land ceiling law to boost real estate and development in West Bengal.
In a major push for urban transformation, West Bengal Finance Minister Swapan Dasgupta has called for the removal of the decades-old urban land ceiling law, labeling it a significant roadblock to the state's development. Speaking at the 24th CREDAI NATCON in Kolkata, the Finance Minister emphasized that the state must shed outdated regulations to invite organized real estate players and modernize its infrastructure.
Outdated Laws Hindering Growth
Dasgupta pointed out that several laws dating back to the 1970s are still in effect in West Bengal, even though similar restrictions have been scrapped in other parts of India. He specifically identified the urban land ceiling as a primary deterrent to progress.
“One of them is something called the urban land ceiling. It is an impediment and a deterrent to development. It has to go,” Dasgupta stated during his address.
The Finance Minister also touched upon the challenges regarding land in rural areas. As West Bengal looks to expand its footprint in factories, technology parks, and logistics facilities, he noted that land-related hurdles must be addressed. He suggested that these issues should be resolved with a balance of "humanness" and "generosity" to ensure smooth industrial growth.
A Call for Accountability and Organized Development
Highlighting the massive potential for redevelopment in Kolkata and across West Bengal, Dasgupta stressed that the state has seen limited investment in housing and urban infrastructure for many years. To fix this, he advocated for a shift toward an organized real estate system.
Key priorities mentioned by the Finance Minister include:
- Full RERA Implementation: Ensuring the Real Estate Regulatory Authority is fully operational to provide security and transparency.
- Stronger Regulation: Moving toward a system defined by accountability and the rule of law.
- Administrative Efficiency: He noted that businesses are looking for "peace, law and order" and "efficient and impartial administration" rather than just specific incentives.
Real Estate Momentum and the AI Revolution
The event also highlighted the changing landscape of the industry. CREDAI President Shekhar Patel shared optimistic news regarding the local market, noting that Kolkata's real estate sales have gained significant momentum. According to Patel, sales in the first half of the year have already reached approximately 70 per cent of the previous year's total, projecting a growth of more than 20 per cent compared to last year.
CREDAI Chairman Boman Irani brought attention to the technological shift within the sector, specifically the integration of Artificial Intelligence (AI). Irani explained that AI is transforming customer interactions and building designs, drastically reducing timelines. Tasks that previously required consultants nearly a month to complete can now be finished in just a few hours, followed by human verification.
Proposed Policy Shifts
To support the next wave of growth, industry leaders suggested structural policy changes. CREDAI West Bengal President Sushil Mohta called for:
- A stronger township policy.
- A framework for transferable development rights, similar to successful models used in Gujarat and Maharashtra, to facilitate satellite-town development without the need for massive government land acquisitions.