The Central Government has updated its policy on the disposal of 60,000 acres of unused salt pan lands, facilitating their transfer for various national development projects such as affordable housing and renewable energy. The lands will be leased for 99 years, primarily to government entities. Significant cost reductions have been introduced, allowing land for public infrastructure at just 10% of the guideline value, while conservation projects can acquire land free of charge.
The Central Government has revised its policy regarding the disposal of 60,000 acres of unused and unproductive salt pan lands across the country, allowing for their transfer on more accessible terms for various national development projects, including affordable housing and industrial use, according to a senior official. The surplus salt land can now be transferred for purposes such as biodiversity conservation, eco-sensitive projects, renewable energy, and affordable housing, as stated by the official. However, these lands can only be transferred to central government departments, central public sector enterprises (PSEs), state governments, and state PSEs.
The transfer will occur under a 99-year lease, with state governments holding the authority to sub-lease these lands for slum redevelopment, housing for economically weaker sections, and industrial plots. The specific land use will be determined at the time of transfer and cannot be altered later. Private parties may only acquire salt land that is under litigation or where government entities are reluctant to take possession. Land involved in litigation or other legal disputes will be auctioned. In contrast to the earlier guidelines that prioritised central government departments, followed by central PSEs, state governments, and their PSEs, the new policy removes this order of priority.
The updated guidelines also reduce the cost of salt land for central PSEs, state governments, and state PSEs. Previously, these lands could only be transferred at market value. Now, for uses such as ports, industrial projects, renewable energy, and eco-tourism, the land will be available at 50% of the guideline value or circle rate set by the state. For aquaculture, saltwater fisheries, seawater cultivation, and agricultural innovation, the land will be available at 25% of the cost. Similarly, for slum redevelopment, affordable housing under government schemes, schools, hostels, and other social infrastructure, the land will also be available at 25% of the cost.
For public infrastructure and utilities, such as roads, highways, bridges, and sewerage plants, the land will be available at just 10% of the guideline value or circle rate. Land under litigation will receive an additional 20% discount on the already reduced rate, and if no buyers emerge for such land, it will be auctioned to private parties. Central government departments will continue to acquire land at a nominal payment of INR1, and land will be provided free of charge for conservation and water management projects.
The central government currently owns 59,793 acres of salt lands across the country through the salt department, under the Department for Promotion of Industry and Internal Trade (DPIIT). Approximately 5,000 acres of this land is situated in Mumbai and its suburbs, although this land cannot be made available for commercial use. Other parcels of salt land are located in coastal areas of Tamil Nadu, Andhra Pradesh, and Rajasthan. Sea salt constitutes 82% of India's total salt production, with Gujarat accounting for 85.8%, followed by Tamil Nadu at 6.47% and Rajasthan at 6.35%.
This revised policy aims to optimise the use of salt pan lands, driving initiatives in housing, infrastructure, and environmental conservation. By simplifying the transfer process and reducing costs, the government is fostering a more efficient approach to land management and national development.
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