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NHAI Plans Land Appreciation Taxes to Finance Projects

Infra News - Published on Wed, 17 Jul 2019

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ET reported that the National Highways Authority of India is working on a mechanism to share gains in land value on account of upgradation of highways as it looks to part-finance urban projects amid increasing costs of land acquisition. The move will help the authority raise extra budgetary resources for urban highway projects and ring roads.

A government official, who did not wish to be identified, said that “Basically, the central government builds the roads and funds them. We are trying to capture the value enhancement, especially in urban projects, so that we are able to part-finance the projects and meet the viability gap funding.”

Through, value capital financing, the Centre will partner state governments and development authorities to share betterment levy, land value taxes and development charges. Betterment levy is a tax that a state collects on a plot of land that it has made better by building roads, metros, airports, etc.

Source :

Posted By : Mohan Sharma on Wed, 17 Jul 2019
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