Financing Urban Infrastructure through Land Monetisation
Municipal Commissioners, Secretaries of Urban Development/ULBs, Development Authorities and the wider urban ecosystem should view public land not merely as a physical asset, but as a powerful financing instrument.
The recent NOIDA Authority auction of five commercial and mixed-use plots generated approximately ₹3,354 crore from nearly 35.7 acres through transparent competitive bidding.
Cities can adopt a structured approach:
Identify underutilised land → establish clear title and land use → improve development potential → undertake independent valuation → monetise transparently → ring-fence proceeds for infrastructure
Land monetisation should form part of a carefully designed Municipal Land and Asset Monetisation Strategy, with proceeds reinvested in water supply, sanitation, waste management, urban mobility, climate resilience and other priority infrastructure.
These resources can also help ULBs leverage funding through the Urban Challenge Fund, PPPs, municipal bonds, institutional debt and climate finance.
Before asking how much grant a city needs, assess how much value is already available on its balance sheet.
For strategic advice on land monetisation, PPP structuring and innovative urban-infrastructure financing, contact us.
Rajeev Chadha
PPPII Guru | Director, Adisri Strategic Advisors
Strategic Advisor to Government and the Private Sector
📧 rajeev@adisristrategic.com
