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This section covers the concepts of land use and land use planning, participation and implementation in planning, land consolidation and land pooling, land governance, land conflicts and their resolution, the basics of land valuation, its legal basis and land valuation in Nepal.
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Land Use and Land Use Planning • Land cover is what physically covers the ground (forest, water, built-up, bare soil); land use is the purpose for which people use the land (agriculture, residence, commerce, industry, recreation).
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Remote sensing observes cover directly and use only by inference. • Land use planning (FAO) is the systematic assessment of land and water potential, alternatives for land use, and the economic and social conditions, in order to select and adopt the best land-use options.
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It is carried out at national, provincial and local levels, and is implemented through zoning, building bye-laws, permits, transaction control and investment. • Steps: set goals and terms of reference → collect data (land resources, present use, socio-economic data, tenure) → analyse land suitability and demand → formulate alternatives → evaluate and select → prepare the plan and legal instruments → implement → monitor and revise.
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GIS-based multi-criteria suitability analysis is the standard technical tool. • In Nepal, the Land Use Act, 2076 (2019) and its regulation require the classification of all land into land use zones — agricultural, residential, commercial, industrial, mining and minerals, forest, river/stream/lake and water bodies, public use, cultural and archaeological, and others — with land use councils/committees at federal, provincial and local level, restrictions on plotting and on the conversion of agricultural land, and land use maps prepared for each local level.
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(Verify the current zone list and procedures.) • Participation and implementation: consultation of land owners and communities, public hearings, participation of local government, and transparent appeal procedures; implementation depends on building permits, registration control (refusing transactions that conflict with the plan) and enforcement capacity.
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Weak enforcement, fragmentation of holdings, unplanned plotting and urban sprawl onto fertile land are the principal problems.
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Land Consolidation and Land Pooling Technique Description Land consolidation A rural instrument: fragmented and scattered holdings are re-arranged into fewer, larger and better-shaped parcels, usually with new roads, irrigation and drainage, and an updated cadastre.
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Merits: efficient cultivation and mechanisation, less travel, better infrastructure and clearer boundaries.
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Difficulties: valuation and re-allocation disputes, attachment to ancestral plots, cost and time, and the need for strong legal backing Land pooling (land readjustment) An urban instrument: the owners of unserviced land pool their parcels; the area is replanned with roads, drainage, water supply and open space; each owner receives a smaller but serviced and more valuable plot, and part of the land is sold to recover the project cost.
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Merits: little or no cash compensation or acquisition is needed, owners keep their land and share the gain, and it is participatory.
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Difficulties: lengthy procedures and consent requirements, disputes over valuation and plot allocation, speculation and delay in servicing.
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It has been used for several projects in the Kathmandu Valley and other Nepali towns Land Governance, Conflicts and Resolution • Land governance is the set of rules, processes and organisations through which decisions on access to, use of and control over land are made and implemented, and the way conflicting interests are reconciled.
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Good land governance is judged by transparency, accountability, participation, rule of law, equity, efficiency and effectiveness; the FAO Voluntary Guidelines on the Responsible Governance of Tenure (VGGT, 2012) and the World Bank's Land Governance Assessment Framework are the standard references.
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Weak governance shows itself in corruption, elite capture, illegal encroachment and land grabbing. • Land conflicts: boundary and encroachment disputes between neighbours; inheritance and family disputes; landlord-tenant (dual ownership) claims; encroachment on public, forest, river and Guthi land; informal settlements on public land; compensation disputes in acquisition; and errors or fraud in records. • Resolution: prevention through accurate, public and current records; negotiation and community mediation; administrative correction by the survey and land-revenue offices; quasi-judicial bodies and commissions (for example the commissions formed to settle the problems of landless and unregistered settlers); arbitration; and finally the courts.
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Alternative dispute resolution is preferred because court cases over land are slow and costly.
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Land Valuation • Value in land economics may be market value (the most probable price in an arm's-length transaction), rental value, assessed value for taxation, insurable value, investment value or compensation value.
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Its principles include supply and demand, highest and best use, substitution, anticipation of future benefits, contribution and change. • Factors affecting land value: location and accessibility; available infrastructure and services; permitted land use and zoning; plot size, shape, frontage and topography; soil and irrigation for farmland; legal status and tenure security; surrounding development; and market conditions and expectations. • Methods of valuation: comparative (sales comparison) method — the commonest, using adjusted prices of similar recent transactions; income capitalisation — value = net annual income ÷ capitalisation rate, for rented property; cost method — land value plus depreciated replacement cost of the building; residual (development) method — value of the completed development minus development cost and profit, used for development land; profit method for trading properties; and mass appraisal (CAMA) with statistical models and GIS for taxation of many properties at once. • Legal basis and practice in Nepal: valuation is needed for the registration fee and taxes (Land Revenue Offices publish minimum valuation rates used for assessing transfer fees), for compensation in land acquisition under the Land Acquisition Act, 2034 (determined by a compensation determination committee chaired by the Chief District Officer, considering prevailing prices and loss caused), for bank collateral (valuation by engineers/valuators under the lender's and Nepal Rastra Bank's requirements), and for accounting and court purposes.
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Problems: assessed/minimum values well below market prices, scarcity of reliable transaction data because prices are under-declared, and the limited number of trained professional valuers.
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(Verify the current valuation rules and institutional arrangements.)