New Delhi: The Army has put on hold the monetisation of defence land, given that real estate prices have dropped due to the coronavirus pandemic, and will move ahead as soon as the situation improves, Army chief General M.M. Naravane said Tuesday.
Describing the land monetisation plan as a good way to beat the budgetary constraints, the general said the step will help all three armed forces and not just the Army.
Speaking at the annual press conference ahead of Army Day, Gen. Naravane also hoped that the armed forces will get additional money to go ahead with modernisation plans in light of the continuing stand-off with China in Eastern Ladakh.
“As far as land monetisation is concerned, there has been a lot of progress. We have got permission for equal value infrastructure. We will go ahead with the monetisation of land. But because there is a Covid situation, land prices have also fallen. Hence, we are waiting. As the situation improves, we will move it forward,” he said.
In October 2020, the Narendra Modi government paved the way for a number of stalled public projects to take off by approving new rules that allow equal value infrastructure (EVI) development for armed forces in lieu of the land procured from them.
Under the new rules, eight EVI projects have been identified, which the acquiring party can provide infrastructure for in coordination with the service concerned.
The Ministry of Defence is the biggest land-owner in the country and, according to the Directorate General, Defence Estates, the ministry has about 17.95 lakh acres of which about 16.35 lakh acres are outside the 62 cantonments in the country.
Gen. Naravane said the new scheme is an important step and will be good for the three services since unused land like old camping ground and land belonging to now-dismantled military farms can be traded for creation of EVI.
“A lot of budgetary constraints will also go away,” he said.
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Budget and modernisation
The Army chief said that the force works according to the long-term integrated plans.
“Depending on the situation and budgetary allocations, these priorities keep changing. And we make whatever changes that need to be made on the modernisation plans,” he said.
He noted that while all ministries were told that instead of 25 per cent expenditure every quarter, only 20 per cent had to be spent, no restrictions were placed on the defence ministry.
“We are hopeful that at the Revised Estimates stage, and have full belief, that we will get, especially in revenue expenditure, more funds so that the more work that needs to be done is completed,” he said.
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Snehesh, The Indian Army does not hold any land.
The MOD does.