Banking of land resources: A framework

Abstract

This study attempts to analyse the current Indian agriculture sector and to come up with Land Bank model which will help to mobilize land efficiently. The land mobilization is the way by which land will be mobilized from one party to other party in such a manner that both party as well as land bank will be beneficiary. The methodology used is predominantly discussion with faculty guide, secondary research involving articles, published papers and literature review on land banking practices in Philippines. After an in depth analysis of the current scenario, we propose to recommend a framework for banking land resource that could be helpful in addressing the current concerns in farming sector in India. In beginning we try to understand the financial system in India. The core function of financial intermediary is also understood. The existence of different model for organized sector and unorganized sector are also discussed in this study. After good understanding of the current financial system we study the land development financing by NABARD which play vital role for facilitating credit flow for promotion and development of agriculture. The concept of land tenancy, land reform, tenancy reform, land acquisition act, land revenue act and contract farming are also discussed so that while developing a model for land bank policy guideline can be set properly. After this we study land lease and land use classification in India and find out that land banking model will be suitable in India. In later part we attempt to develop a basic framework for Land Bank. We discuss various stack holders in this model. The land bank function is also discussed. The operational aspect of land bank is described in briefly. After it we discuss the financial implication of this model and develop a balance sheet and profit and loss account Performa for this bank. Then land bank valuation methods are discussed. We also discuss buyer buying process to find out what factor will impact buying, selling and leasing of land. Having discussed all of these we find out economics of land bank which talks about how every player will be beneficiary of this land bank model. In concluding section we discuss advantages and disadvantages of land bank.