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Andhra Pradesh Priorities: Ease of Doing Business - Pahle India Foundation
1. Doing Business in Andhra Pradesh
Nirupama Soundararajan and Shagun Khurana
Pahle India Foundation, New Delhi
Andhra Pradesh Priorities Conference, Vijayawada June 18-20
2. STUDY AT A GLANCE
• Ranked 2nd (implementation score 70.12%) in 2015, 1st
(implementation score 98.78%) in 2016 and 3rd (implementation
score 99.73%) in 2017
• Two interventions selected –
(i) Land records management system
• BCR
Land Records Management System 23
3. METHODOLOGY
• Secondary Research
• Shortlisting of interventions
• Primary Enquiry – interviews with government as well as business
stakeholders
• Selection of interventions
• Data collection
4. PRESENT SCENARIO
• Obtaining land records highly dependent on human intervention
• Manual records subject to manipulation and present opportunities
for harassment and rent seeking.
• Recording, storage and retrieval of manual records – a major
challenge for the state governments.
The poor state of land records affects future land transactions,
especially in the presumptive ownership system. The process of
obtaining land records is cumbersome, and leads to time and cost
inefficiencies.
5. GOVERNMENT INITIATIVES
• Computerization of Land Records Programme (CLR)
• Strengthening of Land Administration & Updating of Land Records
• National Land Records Modernization Programme (NLRMP)
• Digital India Land Records Modernization Programme (DILRMP)
7. STATUS OF DILRMP IN ANDHRA PRADESH
• Computerized copies of RORs available in 97% of the villages.
• RoRs are available with a digital signature of the designated official
in 98% villages (17212 out of 17563) and legally accepted.
• Survey activities under DILRMP completed for only 0.75% of the
villages.
• 57% of the cadastral maps have been digitized; spatial data verified
with non-spatial data verified only for 1.83% of the villages.
Conclusive titling system requires all land records to be integrated and
updated simultaneously in order to make future land transactions less
cumbersome and reduce the land-related disputes.
8. COSTS
• Risk of expropriation, transfer
and convertibility restrictions,
opaque and inefficient land
markets – disincentive for new
business
• High cost of land in SEZs and
industrial areas
• Land/property-related
disputes, which make about 66
per cent of all civil cases in
India.
• Flawed implementation design
of DILRMP
BENEFITS
• Genuine land transactions
• Implement rural development
programmes.
• Land – mainstay for all
economic activity, especially
manufacturing.
• Acquisition of land will become
easy further with conclusive
titling system – as envisaged in
DILRMP
9. METHODOLOGY
• Cost of survey per square km – LBSNAA study for Rajasthan
• Cost of digitization per map - cost incurred for digitization of existing
maps by Andhra Pradesh
• Operational and maintenance cost = 0.22% of the fixed cost
• Knack and Keefer (1995) find that secure property rights lead to
economic benefit quantified as 0.024% addition to the growth rate of
the economy.
Digitization of land records has immense future benefits. The present
value of total costs and benefits of the interventions are calculated till
2070.
10. Costs
• Total cost of conducting survey/re-survey operations across rural
areas in Andhra Pradesh
• Total cost of digitizing the cadastral maps
• Operational and maintenance cost accruing on a yearly basis.
• Total estimated cost = INR 481 crores
14. REFERENCES
“Access to Justice Survey 2015-16”, Daksh, Bangalore, India, retrieved from
http://dakshindia.org/wp-content/uploads/2016/05/Daksh-access-to-justice-survey.pdf
Ahuja M., Singh A.P. (2006, March). “Computerization of Land Records in West Bengal”. Man
& Development.
Ahuja M., Singh A.P. (2003). “Evaluation of Computerization of Land Records in Karnataka: A
Study from Gulbarga District”. Centre for Rural Studies.
“Foreign Investment Perspectives and Policy Implications”. (2017-18). Global Investment
Competitiveness Report
India Brand Equity Foundation Report. (2017, February). Andhra Pradesh
Knack S., Keefer P. (1995). “Institutions and Economic Performance: Cross-country tests using
Alternative Institutional Measures”. Economics and Politics, 7(3)
Mishra P., Suhag R. (2017, September). “Land Records and Titles in India”. PRS Legislative
Research.
15. REFERENCES
Singh V. V., (2016), “Identifying Existing Capacities to Execute the National Land Records
Modernization Programme in Rajasthan: An Appraisal”, Lal Bahadur Shastri National
Academy of Administration.
“The NCAER State Investment Potential Index”, Report 2017, National Council of Applied
Economic Research, retrieved from http://www.ncaer.org/uploads/photo-
gallery/files/1500629311N-SIPI_2017.pdf
Data Sources
Digital India Land Records Modernization Programme portal, accessed at
http://dilrmp.nic.in/faces/common/home.xhtml
Open Government Data Platform India, accessed at https://data.gov.in/
Unspent balance of Computerization of Land Records, Strengthening of Revenue
Administration and Updation of Land Records programmes, retrieved from
http://dolr.nic.in/dolr/downloads/pdfs/CLR,%20SRA&ULR%20Refund%20of%20Unspend%20
Balance%2029-Apr-2014.pdf
16. Land Records Management System – COSTS
(All figures are in 2017 INR)
Cost of conducting survey
activities per sq.km.*
Total area of Andhra
Pradesh left to be surveyed
under DILRMP
Cost of conducting
survey activities in the
state
34000 142107.017 4831638578
Average cost of digitizing
one map**
Total number of cadastral
maps left to be digitized in
Andhra Pradesh
Cost of digitizing the
cadastral maps in the
state
68.37 315798 21591109.26
Operational cost as a
proportion of fixed expenses
Operational and
maintenance cost
0.22% 10677105
17. Land Records Management System – BENEFITS
(All figures are in 2017 INR)
Expected growth in GDP of
Andhra Pradesh (Knack and
Keefer, 1995)
Economic Benefit from secure
property rights in the first year
post implementation
0.024% 1607896666
