The Centre has askedstate governmentsto consider leasing out vacant land parcels owned by village panchayats to improve revenue.
The Centre observed that vast extent of lands was left unoccupied giving scope for encroachment. It noted that leasing of such properties will help local bodies to improve its revenues at least by 63 per cent over the present revenues.
National Council for Applied Economics and Research (NCAER) carried out a study on the issue and submitted a report with its findings to the Centre. The Centre forwarded the report to the with a suggestion to consider the report’s recommendations.
The state government has directed village panchayats to identify suitable land to grant them on lease. The NCAER report said that auctioning of village tanks by converting them in to fish tanks is expected to improve revenues by 21 per cent.
The report also suggested local bodies to make full use of its borewells after tapping waters for its drinking water needs.