The West Bengal government is contemplating changes to the Urban Land (Ceiling and Regulation) Act, 1976 (ULCRA) to enhance land availability for industrial and infrastructure ventures. The ULCRA historically restricted private vacant landholdings in key cities like Kolkata, Asansol, and Durgapur to prevent land speculation, but it has hindered infrastructure and industrial investments in reality.
Sources from the state secretariat have revealed that a preliminary review of the Act is in progress to identify provisions that could be modified to facilitate industrial and infrastructure investments while still preventing land speculation. Although some in the industry advocate for a complete repeal of the law, the government is leaning towards targeted amendments after a thorough evaluation.
Following the presentation of the state Budget for 2026-27, Finance Minister Swapan Dasgupta emphasized the government’s focus on reforming land-related regulations and reviewing the outdated ULCRA to attract significant private investments. He highlighted the need to amend or remove certain provisions that impede investment opportunities due to the Act’s archaic nature.
The new state government’s land policy, which involves direct land purchase from owners for specific purposes, has garnered positive feedback from economic and industrial experts. This policy shift, along with the potential amendments to the ULCRA, is expected to streamline the investment environment by addressing regulatory challenges related to land availability for large-scale projects and fostering industrial and infrastructural development.
