The Gujarat government has released a new formula to revise government land rates. The revenue department issued a government resolution (GR) on Tuesday, which allows revision of land rates up to 1.5 times. This means that private land owners will also revise their rates. The GR suggested a formula to calculate the rate, with the help of which district land valuation committees will now finalise the rate in urban, semi-urban and rural areas. Government land given to an individual or institution will now be sold at revised rates. A senior official in the revenue department said: "This new formula will hike up the prices of government land. The formula is going to consider the location, connectivity and quality of the plots to decide the final rates and that would increase the price by at least 1.5 times. This can also push other private land owners to revise their rates if their land is in the vicinity of government plots." The official said that the revenue department had fixed a formula in May as well, but that was a loss-making one. "Hence the new formula has come up. Government land near big projects such as Metro rail, bullet train or GIFT City project would be sold at higher rates from now on," the official added. The valuation committee would consider five different factors while calculating land rates. They would calculate an average rate of land on the basis of transactions in the past one year, area of the land to be sold, connectivity with roads and highways, floor space index (FSI) and town planning (TP) in urban areas, among others. The final rate of land parcels in all eight municipal corporations and urban development authority areas including Ahmedabad will be 150% more than the average rate derived after calculation. The final rate in municipalities will be 75% more than the average rate while those in rural areas will be 50% more. WHAT TO EXPECT

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