In a major policy revamp pertaining to the defence lands, the Government of India (GoI) has given a green signal to allow equal value infrastructure (EVI) development for armed forces in lieu of the land procured from them. The new guidelines come ahead of a string of defence land reforms that the government is mooting to provide for the development in cantonment zones, regarded essentially inviolable till now. One of the major reforms in this category is the Cantonment Bill 2020
As per a report in Moneycontrol, Land needed for important public projects, such as the construction of metros, highways, trains, and flyovers may only be swapped for the land of equal value or after payment of market prices. Eight EVI projects have been designated under the new guidelines, for which the acquiring party can provide infrastructure in conjunction with the relevant Service.
They include, among other things, construction units and highways. In circumstances where land is located within cantonment zones, the value of the land will be evaluated by a committee led by the local military authorities. The rate for land outside of cantonments will be determined by the district magistrate.
There have been murmurs in the defence circle that the money raised through this monetization process will be used for the modernization of forces. A non-lapsable fund is expected to be constituted to take care of the modernization needs of the forces which have been a major focus in the last few years.
It is to be noted that the draft cabinet note on the establishment of the defence modernization fund is currently undergoing inter-ministerial consultations, after which it will be presented to the Union cabinet for approval.
Insufficient for military modernization
However, there has been major apprehensions raised within the military circle as to whether these funds would be enough to fulfil the needs of modernization. Last year, the government was advised by the Department of Military Affairs (DMA), led by Chief of Defence Staff (CDS) Gen. Bipin Rawat, that profits from defence land monetisation would be insufficient to meet the armed services' needs.
