Defence Ministry Eyes Surplus Land Monetisation for Revenue Generation
The Ministry of Defence is embarking on an ambitious initiative to harness the potential of its vast land holdings, seeking innovative ways to optimise underutilised and surplus defence land for revenue generation. With more than 17 lakh acres of land across India, the armed forces are the largest landholder in the country, but a significant portion of this land remains unproductive. The government is now exploring avenues to make better use of this valuable resource, aiming to not only support the armed forces’ modernisation but also contribute to the nation’s economic development.
Sources suggest that the Ministry is seeking input from various stakeholders, including the armed forces, public sector enterprises, and state governments, on how to transform unused land for public benefit. The focus is on identifying opportunities for sustainable projects, such as large-scale greening and plantation activities, as well as leasing land for infrastructure projects like roads, railways, and public utilities. There is also significant potential for using surplus defence land for expanding industrial and commercial zones, which would stimulate local economies and create jobs. In addition to its land for housing and training purposes, the Ministry of Defence holds numerous parcels of land in locations that have become less relevant due to urbanisation. These include military ranges and testing areas, which are often no longer required due to the rapid expansion of surrounding cities. According to insiders, a substantial portion of this unused land could be repurposed to benefit other government projects or leased to private entities, which would generate much-needed revenue for the Ministry.
A critical aspect of this initiative is the potential for monetisation. The government has already identified around 20,000 acres of surplus land, particularly in areas where military farms have been closed. These lands could be offered for development, either to other government departments or to public-sector enterprises. Similarly, abandoned airfields and camping grounds amounting to 8,000 acres have been identified as having commercial value. The Ministry has also highlighted the issue of 1,243 acres of encroached defence land, estimated to be worth ₹10,000 crore, which could be recovered through monetisation efforts.The long-term aim of this strategy is to create a modernisation fund for the armed forces, which would finance the much-needed upgrade of defence infrastructure, equipment, and facilities. The idea is to ensure that defence land, which has long remained idle, is utilised in a manner that contributes to the national economy while meeting the needs of the armed forces. The monetisation of this land could provide a significant revenue stream that supports the broader goals of modernising and enhancing India’s military capabilities. However, the proposal has met with some resistance, particularly concerning the distribution of the revenue generated. In 2021, the Ministry of Finance suggested that only half of the funds raised through land monetisation should be allocated to the armed forces, with the remaining portion to be channelled into the Consolidated Fund of India. This proposal has sparked a debate about the best way to balance the needs of the armed forces with the broader fiscal interests of the country.
The Defence Ministry has been proactive in addressing these concerns, including amending land transfer rules to allow for the exchange of land holdings across India in exchange for infrastructure development. This move is aimed at financing key projects such as accommodation for troops and building facilities for the armed forces.
While the monetisation of surplus defence land is still in its nascent stages, the Ministry’s efforts could lead to the creation of sustainable, eco-friendly, and equitable cities. With the right policies in place, these lands can not only support military modernisation but also contribute to the broader goal of building a zero-net carbon, inclusive, and forward-thinking nation. The Defence Ministry’s initiative holds immense potential, but its success will depend on careful planning and collaboration with stakeholders at every level. The ultimate goal is to ensure that the country’s vast land resources are utilised efficiently, in a way that benefits both the armed forces and the broader Indian populace.
