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Chapter 5
URBANISATION PROCESS
5.1 Concept of urbanisation process Process of urbanisation in peri-urban involves the interaction of internal and external
forces bringing out change from traditional rural life to the urbanised form. This process
continues for a long time and ultimately results in complete transformation of the
traditional rural society to an altogether different physical, cultural and socio-economic
environment. Urbanisation refers to a process, which generates certain manifestations,
both physical and social, within the settlement pattern and cultural organisation of the
involved community (Rose1967). 1 According to Smailes (1953),2 the process of
urbanisation, which refers to a change in both place and people, involves two notions,
one geographical and the other sociological. The geographic concept relates to the
grouping of the people in concentration that are different in size, functions and
institutions from rural clusters of agricultural population; the sociological concept relates
to the presumably distinctive way of life associated with milieu and occupation that are
set apart from the agricultural life of the countryside. The process of urbanisation is a
continuing process which is not merely a concomitant of industrialisation but a
concomitant of the whole gamut of factors underlying the process of economic growth
and social change (Bose 1980). 3
In simple terms urban process in the peri-urban areas means the transformation of the
rural areas into urban one, owing to the industrialisation, migration of population and
many other agents involved in the process. Although there are many components which
are involved in the process of urbanisation, present chapter deals_ with three main
constituents i.e. the migration of population; development of commercial and industrial
establishments, the land market system and the changing land prices in the peri-urban
areas to find out how these constituents work in a dynamic zone to contribute to the
urbanisation process.
Before attempting the empirical studies, it is essential to analyse the past trends of
urbanisation in Delhi where number of settlements which were once peri-urban were
converted to urban areas and are now part of Delhi urban area.
124
5.2 Review of the urbanisation process
Delhi, the historical city of India has been the seat of many empires that prospered and
vanished over its land. These empires had developed general settlements and royal
establishments in different parts of Delhi that is acknowledged by the ruins of forts and
monuments of that period. Each dynasty developed its own site abandoning the old one.
According to Stephen (1876),4 in 45 sq. miles 13 capitals have appeared and
disappeared. These empires were not stable and many battles were fought around Delhi.
It is because of political instability, frequent battles and shifting of capital sites that
population of Delhi could not increase in large size for a longer period. Under these
conditions of slow population growth, the need for the physical expansion also did not
arise. Physical expansion of Delhi started with the foundation of Shahjahanbad, a new
city at the bank of Yamuna in 1648 AD (Gazetteer1987).5 The proper city covered
hardly a radius of 5 kilometres and around it there were small settlements. In 1803, the
city came under the control of British who initially settled in Kashmere Gate area and
later on shifted to the north now known as civil lines. After the suppression of uprisings,
the British's cleared the whole area from Red Fort to Jama Masjid for military reasons.
People who lost their houses in the process migrated to settle outsides the walled city.
Some were settled in the suburbs of Motia Khan, Idgah Kadam Sharif, Paharganj,
Nizamudin, and Mehrauli, (Jain 1966).6 It was for the first time that the city started
expanding outsides the walls into rural areas. Mori gate, Farash Khana, Ajmeri gate,
Turkman gate and Delhi gate were the fringe territories of the walled city upto early
twentieth century (Diwakar 1991). 7
Though the city growth was started with the introduction of railways in 1867 and other
economic activities, the real growth was witnessed after 1911 when the capital of British
India was shifted from Calcutta to New Delhi. In 1913, land was acquired in Karol bagh
area and in western extension to settle the workers, brought to Delhi for construction work
in the capital area. In 1916, the butchers and tanners were removed from Old City and
settled in Regharpura. In 1920, Daryaganj was developed for residential plots in its north
part and charity institutions in its southern part (Jain 1996).8 Upto this period, though land
was acquired for different purposes, there was sharp dividing line between the city and
the countryside (Gupta1981).9 In 1937, Delhi improvement Trust was formed and the
entire Govt land was kept at the disposal of the Trust for improving the conditions in the
walled city (Rebeiro 1987). 10
After the partition in 194 7, Delhi witnessed a vast expansion in its area and population.
About 0.5 million population migrated to Delhi during this period. Govt of India planned
125
to settle the displaced persons in different areas. Large area of agricultural land was
acquired especially in the west and South Delhi and the colonies like Nizamuddin, Lajpat
Nagar and Malviya Nagar were built in the South and Rajendra Nagar, Patel Nagar, Tilak
Nagar and Ramesh Nagar were built in the west (Yadav 1979). I I As the number of govt.
employees increased in administrative activities, number of more colonies like defence
colony, south Extension, Greater Kailash, Green Park and Hauz Khas were developed in
South Delhi.
5.2.1 Temporal stru:ctural changes in urban, peri-urban and the rural zone
As mentioned above, till 1920,Delhi had a sharp dividing line between the urban and the
rural area and as such had a very week peri-urban zone where rural and urban interaction
was negligible. After this period, Delhi became a dynamic area forming regular peri
urban zone that was interacting with the urban for sometime before its merging into the
main city. This has been a continuous process and many structural changes in urban, peri
urban and rural zone have been witnessed since 1921.Few main structural changes in
above set up are given below:
Increase in number of towns
Since 1921, there has been sharp increase in the number of towns in different parts of
Delhi, which increased the interaction of the rural areas with the city and formed a
narrow peri-urban zone mutually drawing and supplying services to each other. Table 5.1
shows that upto 1921 there was only one town (i.e. the walled city) administered by the
Municipal committee of Delhi. In 1931, New Delhi and Shadara were added as new
towns raising the number to three. In 1941, six new towns namely Cantonment, Civil
lines, Narela, Mehrauli, Najafgarh and Fort Delhi were added.
Table 5.1
Year No. oftowns
*Statutory towns •• Census towns Source: Census oflndia I 96I, I 97I, I98I, I 99I, District Census Handbook, Delhi.
At the time of 1951census, a new town known as West Delhi was added on account of
urbanisation of few villages of West Delhi and the formation of West Delhi Municipal
126
committee. In 1958, the Delhi Municipal corporation act came into force and with this
Municipal corporation for Delhi was formed which took all the local bodies in its fold
except New Delhi Municipal Committee and Delhi Cantonment board and thus by 1961
census, the number of towns were reduced to three that continued in 1971 census. In
1981, there were 3 statutory towns while 27 settlements were considered as census towns.
In 1991, there were 3 statutory and 29 census towns. Increasing number of towns shows
that peri-urban zone became the regular phenomena after independence. It was
continuously developing and merging in the main city.
Reduction in rural villages
Delhi urban area, seen today has been expanded at a very rapid rate for the last few
decades taking many peri-urban and rural settlements into its fold. As per the records of
the census 1931, the number of villages at the time of 1921census was 357, out of which
314 were inhabited while 43 were uninhabited (Table 5.2). During 1925, one revenue
estate named Pachara went out to Uttar Pradesh while 25 revenue estates from Meerut
district were added in Delhi. Between 1921 and 1931, 25 revenue estates were (18
included in Delhi city, 6 in New Delhi city and 1 in Shadara town) urbanised. 356
villages remained at the time of 1931 census out of which 307 were inhabited while 49
were uninhabited. During 1941, there were 354 villages out ofwhich 305 were inhabited
while 49 were uninhabited. Decrease of two inhabited villages from 1931 census is not
mentioned in the census report and it was assumed that these two villages were included
in Shadara town.
According to 1951 district census handbook, there were 363 revenue estates, which
showed a decrease of 18 revenue estates over the previous census. This appears that 18
revenue estates that were included in Delhi City in 1931 no longer retained the status of
revenue estates, as it became the part of Municipal area of Delhi. There were 304
inhabited villages at the time of 1951 census leaving the gap of 5Q revenue estates to
make it 363.After investigation from the later on records, it is found that 22 revenue
estates were urbanised before 1951 and 3 7 revenue estates were deserted at the time of
1951census making the total to 363 revenue estates. Thus, by 1951, more than 40 villages
were urbanised since 1921, out of which 18 lost its status of "revenue estate" as they
were merged in Delhi City. During 1961 census, there were 3 00 villages as listed in the
127
village directory out of which 276 were inhabited and 24 were uninhabited. However,
there was difference between the census list and the revenue records. Our of the total 341
villages in 1951, 4 7 were urbanised during 1951-61 reducing the list to 294 villages.ll
new villages came into being within 294 revenue estates making the list to 305. Since 5
villages namely Sabapur, Jagatpur, Pur, Badarpur and Shinjarpur had their land existing
on both sides of river, were shown each in two revenue estates. However, the census
1961 has taken it as one unit each reducing the number to 300 villages. The number of
villages at the time of 1971 census was 258, out of which 15 were uninhabited. The rest
243 were distributed in two tehsils as the new tehsil Mehrauli was constituted in 1971.
There were 156 villages in Delhi tehsil and 1 02 villages in Mehrauli tehsil. In 1981, there
were 231 villages, out of which 17 were uninhabited and 214 inhabited. In 1991, there
were 209 villages out ofwhich 199 were inhabited while 10 village were uninhabited.
Table 5.2
NCT Delhi
Changes in the number of rural villages during 1921-91
Year Total no. ofvillaees Deserted villa2es Inhabited "illages 1921 357 43 314 1931 356* 49 ' 307 1941 354 49 305 1951 341 37 304 1961 300 24 276 1971 258 15 243 1981 231 17 214 1991 209 10 199
*In addition one revenue estate (Pachera) went to Uttar Pradesh by means of notification no. 4626 R & A dated 24'• July 1925 and 25
new revenue estates were added in Delhi.
Source: Census oflndia 1961,1971,1981,1991,District Census Handbook, Delhi
Table 5.3
NCT Delhi
Villages urbanised during 1921-91
Year 1921-31 1931-51 1951-61 1961-71
Nwnber of villages 25 22 48 40
urbanised
Source. Census oflnd1a 1961,1971, 1981,1991 ,D1str1ct Census Handbook, Delh1
128
1971-81 1981-91 Total
27 21 183
Temporal absorption of rural areas into the urban
The urbanisation process in Delhi is absorbing the villages in the urban area at a very fast
speed. From 1921to 1991, 183 villages have been incorporated in the urban limits (Table
5.3).
During 1921-31, 25 villages were incorporated in the urban limits for the capital area and
to settle down the workers brought from outside for the construction work.
During 1931-51, another 22 villages were incorporated in urban area. During this period
two events occurred which increased the urban population in large size. Firstly, Second
World War (1939-45) accelerated the demand of manufactured articles for the army. As a
result, _industrial growth took place, which attracted the workers from outside. The
industrial units increased from111 in 1939 to277 in 1945(Gazetteer1987/2 and industrial
workers from 17000 to 3 7000 during this period. Second event occurred when partition
of the country took place and about 5 lakh refugees from Pakistan came to Delhi and
large part of them settled in urban area. Such heavy influx of population accelerated its
growth especially in urban areas. These two events accelerated the growth of urban
population and increased its number from 4.4 7 lakh in 1931 to 14.3 7 lakh in 1951. This
heavy growth of population increased the demand for land to accommodate the
population and therefore the adjoining villages were incorporated in the urban area.
During 1951-61, the urban population was increased from 14.37 lakhs in 1951 to23.59
lakhs in 1961. Delhi improvement trust set up in 193 7 to execute the schemes for
ameliorating the living conditions could not manage the growth of the city. The city grew
haphazardly and the land passed into the hands of the speculators. As a result, the
unauthorised colonies started increasing. Besides, Jhuggi clusters, which occupied mainly
the govt land, were increased from 199 in 1951 to 444 in 1961 and population living in
these Jhuggies increased from 12,740 in 1951 to 42,814 in 1961 (Nangia, et. al. 2000). 13
To prevent the bad layout ofthe land, haphazard erection of buildings and expansion of
Delhi according to proper planning, Delhi Development authority was set up in 1955. An
act of parliament called the Development act 1957 enabled the constitution of Delhi
development authority. 48 villages were incorporated in the city during 1951-61.
129
The construction of ring road in 1956 (Gazeteer1987) 14 opened new areas for
development in the periphery of the city. It helped the d_evelopment of new colonies such
as defence colony, Kidwai Nagar, South Extension, Andrewsganj etc. 27 out of the 48
villages were incorporated in the south Delhi. The industrial expansion that stood from
431registered factories in 1951 to 1096 in 1961 also helped in the expansion ofthe city
both by occupying the space as well as attracting the migrants from outside.
During 1961-71, 40 villages with 11972 ha. of land were incorporated in the urban
limits. During this period, population of the city increased from 23.59 lakhs in 1961
to36.47 lakhs in 1971. Number of registered Industrial factories increased from1 096 in
1961 to 1764 in 1971. Rural industrial centres set up in different plan periods resulted in
change in land use and many other urban activities. Jhuggies (Squatter settlements)
increased from 42.8 thousand in 1961 to 52.6 thousand in 1971 (Danik Jagrin, 101h Sep.
1998).15 16 out of the 40 villages were incorporated in the city across Yamuna. Number
ofunauthorised colonies came up in this area.
During 1971-81, 27 villages were incorporated in the city area. Urban population
increased from36.47 lakhs in 1971 to 57.68 lakhs in 1981. This decade experienced large
expansion of industrial development. The number of registered factories increased from
1764 in 1971 to 3649 in 1981 and industrial units increased from26, 000 to 50,000 in the
corresponding period. The length of roads was doubled during this period, which led to
better network of transport. Increase in land value and better transport network
encouraged many industrial units to move to the periphery. Master plan also encouraged
the shift of industrial units to the conforming areas in the outskirts. 10,000 ha. of land
was acquired to develop 46 resettlement colonies.
During 1981-91, 21village were incorporated in the urban agglomeration. Urban
population increased from 57.68 lakh in 1981 to 84.71 lakh in 1991. Industrial units
increased from 50,000 in 1981 to 81000 in 1990.Though, the unauthorised colonies
which came upto June 1977 were regularised, the process of further development of more
unauthorised colonies continued and by 1983, 700 new unauthorised colonies have come
up covering about 4500 ha. of land and accommodating 12 lakh population (Mehta). 16
Number of unauthorised colonies increased to 945 by March 1991(Nangia and Thorat
2000). 17 Jhuggies (Squatter settlements) that were decreased to 20,000 in 1977 after the
130
resettlement of major Jhuggi clusters (Squatter clusters) in new sites were again increased
to 2,59,300 in 1990 (Danik Jagrin, sep lOth 1998). 18 New master plan (MPD2001)19 came
into force during this period and it was proposed to acquire 14000-20,000 ha. of land
between 1981-2001. 4000 ha. of land was proposed to be acquired exclusively for he
Papan Kalan residential complex out of which large part of the notified area was
encroached upon under unauthorised constructions by 1996. (Jain 1996).20
5.2.2 Temporal population changes in the urbanisation pracess
There has been a rapid growth of urban population since 1901 (Table5.4). It has increased
from 52.76 percent in 1901 to 89.93 percent in 1991.High growth ofurban population is
on account of rapid change in industrial, commercial and administrative activities that
generated employment opportunities to attract population from different states.
There has been great decadal variation in the population of rural areas and urban areas.
During 1901-11 the urban population growth has been less impressive as it grew
nearly11.13 percent. However, rural population declined by 8.24 percent during this
period. This is on account of severe epidemic of plague and malaria, which restricted the
growth of population. Urban population growth picked up from 1911-21 with the decadal
Variation of 27.94 pcrc;nt, -which shows \hnt though this decade faced epidemic of
influenza, even then urban population incteased significantly. Thil:i is on account of
shifting of capital from Calcutta to Delhi in 1911. Number of workers came :from other
states for the construction work in the capital area. The subsequent decades of 1921-31
and 1931-41 experienced very significant growth of urban population, which was on
account of increase in trade and commerce, industries, offices and institutions. During
1941-51, Delhi experienced very high percentage growth of population both in rural and
urban areas. However, the urban population experienced higher percentage growth than
the rural areas. This was on account the partition of India in 1947 when 0.5. million
population migrated to Delhi and large proportion of them settled in the urban area. In the
subsequent decades the urban population of Delhi increased at a very significant rate. The
rural population in 1951-61 decreased by 2.52 percent, which was on account of
incorporation of 48 villages in the urban area. The rural population growth in Delhi
during 1961-71 was significantly higher than the corresponding growth in India which
131
reveals that peri-urban areas of Delhi whicli were under the influence ofurban area must
have experienced very high growth of population leading to high growth in the over all
rural area. In 1971-81, population of urban area showed an increase of 58.16 percent
while the rural areas experienced 8.01 percent during this period. The low increase in
population of rural area is again on account of incorporation of 27 villages in the urban
agglomeration.
During 1981-91, the rural areas of Delhi have experienced highest population growth it
has ever experienced. It crossed all its past records and also crossed the percentage
growth of urban population. Urban population showed slightly the low percentage growth
than the previous decade. High population growth in rural Delhi is on account of very
high population growth in the peri-urban areas adjoining the urban area and low number
of incorporation of villages in the urban area during this period than the previous decades
since 1951.
Table 5.4
NCT Delhi
Decadal variation of population 1901-1991
Year Population Percent of Percent decadal population variation
Area in Rural Urban Total Rural Urban Rural Urban ·Total sq. kms.
1901 - 191704 214115 405819 47.24 52.76 - - -1911 - 175907 237944 413851 42.50 57.50 -8.24 11.13 1.98
1921 1536 184032 304420 488452 37.68 62.32 4.62 27.94 18.03
1931 1484 188804 447442 636246 29.67 70.33 2.59 46.98 30.26
1941 1447 222253 695686 917939 24.21 75.79 17.72 55.48 44.27
1951 1497 306938 1437134 1744072 17.60 82.40 38.10 106.58 90.00
1961 1484 299204 2359408 2658612 11.25 88.75 -2.52 64.17 52.44
1971 1485 418675 3647023 4065698 10.30 89.70 39.93 54.57 52.93
1981 1483 452204 5768200 6220404 7.27 92.73 8.01 58.16 53.00
1991 1483 949019 8471625 9420644 10.07 89.93 109.87 46.87 51.45
Source: Census oflndia, 1961, 1971,1981 and 1991
Population density
--
318.00
428.74
634.37
1165.04
1791.52
2737.84
4194.47
6352.42
High rate of population growth in rural Delhi shows that Delhi urban area is not able to
absorb the growing migration and increasing number of establishments. Therefore, the
pressure is on peri-urban areas, which later on will be absorbed in the urban area as soon
as it fulfils the conditions, laid out for its absorption. High growth of population in the
132
rural area is not limited to 1991 census, it has been happening since the formation of peri
urban zone. This is not visible in the figures because population of part of peri-urban
areas has been regularly taken over by the city in different census periods along with its
settlement. High rate of urbanisation process in Delhi Metropolis is partly the product of
urbanisation process in the peri-urban areas.
5.2.3 Growth of population in the peri-urban areas 1971-81 and 1981-91
Growth of population calculated above in table 4.4 does not truly represent growth in the
rural/ peri-urban areas because ofthe difference in the number of villages in the base· year
and the year for which the percentage growth is calculated. For example, to calculate the
decadal percentage growth of rural pppulation in1971-81, the rural population of 1971
has been taken as the base population which belongs to 258 villages while the population
of 1981 is taken of 231 villages as 27 village became census towns between 1971-
1981 and considered towards urban than in rural areas in 1981. This difference of units
brings the decadal population growth to 8.01 percent, which is misleading. I
To see the real population growth during 1971-81 and 1981-91 in rural areas that have
been considered as the peri-urban of National Capital Territory of Delhi in the present
study, 185 villages out of total 209 in 1991 census have been taken up. 10 villages were
uninhabited during 1991 while 14 villages were either uninhabited during 1971 or 1981 or
having some other problem to compare the data in inter census period. Villages became
urbanised or census towns during this period have also not been considered, as data for
these units is not comparable.
Table 5.5
NCT Delhi: Peri-urban
Growth of population
Percent
Zone 1971-81 1981-91 Inner peri-urban 57.46 314.07 Middle peri-urban 44.27 41.89 Outerperi-urban 36.48 33.81 Total 46.90 . 145.87
Source: District Census Handbook ofDelhi, Village and Town Directory Directory, 1971, 1981, and 1991
133
Table 5.5 shows that in 1971-81, population growth in the peri-urban is 46.90 percent.
The inner peri-urban shows 57.46 percent growth that is almost equal to the growth of
urban areas during this period. The growth of population declines towards outer peri
urban as the influence of the city is reduced. '
In 1981-91, the population growth in the peri-urban areas is 145.87 percent, which is
more than three times the growth rate in urban areas. The population growth percentage
in the inner peri-urban is significantly higher and accounts for 314.07 percent, which is
nearly 7 times the growth percentage in the urban area. The growth of population
declines towards the outer peri-urban. These trends of population growth clearly indicate
that peri-urban areas are the service centres that serve the growth of population and area
for the urban.
5.3 Constituents of urbanisation process
Migration of population, development of industrial and commercial establishments, land
market system and changing prices are the chief constituents of urbanisation process in
the peri-urban and are discussed below: -
5.3.1 Migration
Migration of population from different states to the peri-urban is an important factor,
which accelerates the urbanisation process in these areas. Rural urban migration is by far
the major component of urbanisation and as the chief mechanism by which the entire
world's great urbanisation trends have been accomplished (Donald J.Bogue & K.C
ZachariaH 1962)21. Peri-urban receives mainly two types migration streams i.e. frrstly
those who had earlier migrated in the rural or urban area and after staying there for some
period as tenants have purchased plot and constructed /purchased houses either in the
village Lal Dora or agricultural land. Second stream of migrants are those who come to
this area as tenants because they cannot afford high rents in the urban areas. They are
either working in the local area or commuting to the city for work.
Since migration is unique feature of urbanisation process, data of 83 migrant households
has been collected with a view to study its dynamics in the urbanisation process. Out of
83 households 41 are house owners while 42 are tenants.
134
States of migration
Analysis of data show that 51.21percent ofthe migrants are from Uttar Pradesh while the
second highest figure is from Bihar State with 21.95 percent of the migrants. Though the
Bihar State is second in terms of total percent of migrants, it is lowest with regard to the
percentage of house owner migrants (Table 5.6). It means that small fraction of the
migrants from Bihar construct their houses which seems to be on account of their poor
economic condition. Uttar Pradesh again leads in the percentage of house owner migrants
followed by Harayna, Rajasthan, Punjab and Himachal Pradesh. As far as tenant migrants
are concerned, Uttar Pradesh again comes in the first position with 46.34 percent tenants
from this state. Bihar follows it with 41.46 percent. Hafayana State has 12.19 percent as
tenants in the sample area.
State Bihar Uttar Pradesh Punjab Haryana Rajasthan Himachal Pradesh Total
Period of migration
Table 5.6
NCT Delhi: Peri-urban
States of migration
Owners Tenants 2.44 41.46 56.10 46.34 9.76 0.00 17.07 12.20 9.76 0.00 4.88 0.00
100.00 100.00
Figures in percent,
Total 21.95 51.22 4.88 14.63 4.88 2.44
100.00
Analysis of the primary data shows that large percentage of migrants living in the peri
urban belongs to the period before 1980 and 1981-85 (Table 5.7). The decline in the
percentage of migrants in the subsequent 5-year interval is on account of irregular flow of
migrants. All the migrants living in the peri-urban don't come directly in this area. Large
part of the migrants stays in the metropolis for some years and then shifts to the peri
urban for construction of own house.
This way, the flow from the urban to the peri -urban is not regular and· depends upon
many factors. Such irregular flow of migrants to the peri-urban declines the percentage of
migrants in the subsequent periods.
135
Table 5.7
NCT Delhi: Peri-urban
Temporal percentage of migration in sample households
Village Years (migration figures in percent)
Before 1980 1980-85 1986-90 1991-95 1996-99 Total Kapas Hera 45.45 18.18 9.09 18.18 9.09 100 Mith~ur 40.00 33.33 6.67 6.67 13.33 100 Libaspur 40.00 20.00 0.00 30.00 10.00 100 Kakrola 30.77 46.15 7.69 15.38 0.00 100 Inner peri-urban 38.78 30.61 6.12 16.33 8.16 100 Bankauli 0.00 30.00 60.00 10.00 0.00 100 Holambi Khurd 22.22 33.33 22.22 11.11 1'1.11 100 Paprawat 10.00 40.00 20.00 30.00 0.00 100 Middle peri-urban 10.34 34.48 34.48 17.24 3.45 100 Nangal Thakran 0.00 100.00 0.00 0.00 0.00 100 Jhatikra 33.33 0.00 33.33 33.33 0.00 100 Outer peri-urban 25.00 250.00 25.00 25.00 0.00 100 Total peri-urban 28.05 31.71 17.07 17.07 6.10 100
The proportion of migrants belonging to different periods is not uniform over the entire
peri-urban. In the inner peri-urban, highest percent of migrants that accounts for 38.78
percent of the total migrants belong to the period before 1980. The middle and the outer
peri-urban have 10.34 and 25.00 percent migrants belonging to this period. Kapas Hera
has the highest percentage of migrants belonging to this period. In the inner peri-urban,
the percentage of migrants declines in the subsequent period. In the middle peri-urban,
the percentage of migrants is highest belonging 1980-85 and 1986-90. There is no trend
in the outer peri-urban as the number of migrants is very low.
Reasons for Migration
Analysis of the primary data shows that migrants presently living in the peri-urban came
to Delhi have different reasons for their movement from their last residence.37.05 percent
migrants moved to Delhi in search of employment. However, there is variation in the
male and female migrants under this reason. 62.92 percent male population migrated to
Delhi in search of employment while only 1.16 percent females migrated under this
reason. Second major reason for the migration to Delhi is the movement of the family
including children and the aged persons who came along with the family (Table 5.8).
Third major reason for the movement is the movement of the females who moved with
their husband. The female migrants forms the highest group under this reason Another
reason for migration is the marriage of the females in Delhi that fonns negligible percent
among the total migrants Other reasons of migration which are minor in nature are
education, natural calamities and others.
136
holders. Some poor plot holders are not able to construct houses and sell land as the price
increases. This process goes on and with each further stage of development, new people
having better economic status come in the market. In this way, the percentage of resale
plot holders is increased over the original purchasers.
Table 5.11
NCT Delhi: Peri-urban
Nature of sale-deed and channels through which the plots are purchased.
I Village Figures in percentage II Nature of sale deed Channel of purchase
First sale plot Resale plot From farmer Speculators Allottee Others Total Holders Holders
Kapas Hera 20.00 80.00 0.00 100.00 0.00 0.00 100 Mithepur 0.00 100.00 0.00 77.78 11.11 11.11 100 Libaspur 20.00 80.00 0.00 100.00 0.00 0.00 100 K.akrola 14.29 85.71 14.29 85.71 0.00 0.00 100 Inner peri-urban 12.00 . 88.00 4.00 92.00 4.00 0,00 100 Bankauli 50.00 50.00 25.00 25.00 50.00 0.00 100 Holambi Khurd 80.00 20.00 0.00 50.00 50.00 0.00 100 Paprawat 100.00 o·.oo 50.00 50.00 0.00 0.00 100 Middle peri-urban 78.57 21.43 28.57 35.71 35.71 0~00 100 Nanga! Thakran 100.00 0.00 100.00 0.00 0.00 0.00 100 Jhatikra 100.00 0.00 0.00 0.00 100.00 0.00 100 Outer peri-urban 100.00 0.00 50.00 0.00 50.00 0.00 tOO Total peri-urban 39.02 60.98 14.63 68.29 17.07 0.00 100
Sale and purchase is not operated through one channel. Different channels are involved
under different stages of urbanisation process. 68.29 percent sale /purchase in the peri
urban is conducted by the speculators which tests the hypothesis that the speculators have
the key role in the land sale-purchase of the unregulated sector.14.63 percent of the plot
holders purchased their plots directly from the farmers while 17.07 percent directly from
the plot holders.
Sale and purchase through different channels is not uniform over the peri-urban. In the
inner peri-urban 92.00 percent sale has occurred through speculators while in the middle
peri-urban this percentage is 35.71 and in the outer peri-urban it is nil as the speculators
dealing with such sale purchase are non-existent on account of low demand for
residential plots. In the outer peri-urban highest percentage of residential plots have been
purchased directly from the farmers. Corresponding percentage in the inner peri-urban is
lowest. The reason for such trend is the same as mentioned above that in the outer peri-
141
urban, demand for plots is low and as such the low activity of the speculators. Thus, the
direct deal is prevalent in the outer peri-urban. As one moves towards middle to the inner
peri-urban, the speculators come into the picture as the demand for residential land is
increased.
Temporal purchase of land
The land purchase in the unregulated sector by the migrants has occurred in different
proportions in different periods (Table 5.12). As per the sample data, the highest purchase
ofland has occurred in the period 1995-99 accounting for 31.71 percent deals. The lowest
percentage has occurred in 1980-85 accounting for 14.63 percent deals.
Table 5.12
NCT Delhi: Peri-urban
Temporal purchase of unregulated/ Lal Dora residential plots.
Village Year (Plots figures in percent)
80-85 86-90 91-95 95-99 Total KapasHera 20.00 40.00 0.00 40.00 100 Mithepur 12.50 0.00 62.50 25.00 100 Libaspur 16.67 33.33 33.33 16.67 100 Kakrola 0.00 83.33 16.67 0.00 100 Inner peri-urban 12.00 36.00 32.00 20.00 100 Bankauli 0.00 0.00 50.00 50.00 100 Holambi .Khurd 60.00 0.00 20.00 20.00 100 Paprawat 0.00 0.00 0.00 100.00 100 Middle peri-urban 21.43 0.00 21.43 57.14 100 Nanga! Thakran 0.00 100.00 0.00 0.00 100 Jhatikra 0.00 100.00 0.00 0.00 100 Outer peri-urban 0.00 100.00 0.00 0.00 100 Total peri-urban 14.63 26.83 26.83 31.71 100
However, there are great periodical variations in the percentage purchase of plots in the
unregulated I Lal Dora among different peri-urban zones. In the inner peri-urban, the
highest percentage of purchase has occurred in 1986-90 accounting for 36 percent of the
total purchase while in the middle peri-urban, the major purchase of land has occurred
in1995-99. In the outer peri-urban purchase of land is limited and the entire purchase
recorded has occurred in 1986-90. The comparison of first two zones which are dynamic
in purchase of land shows that in the inner peri-urban, the highest percentage of purchase
of land occurred long before the highest purchase of land in the middle peri-urban, which
is on account ofthe difference in the beginning of urbanisation process ..
142
Average period for which the plot remains vacant after purchase
It has been observed that_after purchasing land from the property dealer/farmer, it is not
put under use immediately. It is kept vacant for some period for want of money with the
purchaser or other reasons. Table 5.13 shows that 68.29 percent plots are kept vacant for
0-2 years, 24.39 percent for 2-5 years, 2.4 percent for 5-10 years and 4.88 for more than
10 years. However, there are inter- zonal variations in the temporal percentage of vacant
plots. In the inner peri-urban, 88 percent of the migrant plot holders keep their plots
vacant for 0-2 years and 12 percent for 2-5 years. In the middle peri-urban, highest
percentage of plot holders keep their plots vacant for 0-5 years and 14.29 percent for
more than 10 years. Keeping the plot vacant for the minimum period in the inner peri
urban is on account of more resale plot holders in this zone than the middle and the outer
one. The resale plot holders are economically more sound. Their investment in purchase
of plots is higher than the first sale plot holders and cannot afford to keep the plot vacant
for longer period. While on the other hand, large percentage of first sale plot holders are
economically week and cannot afford to construct their houses immediately and thus
keep the plot vacant for a longer period.
Table 5.13
NCT Delhi: Peri-urban
Number of years of unregulated/ Lal Dora residential plots remained vacant.
Plots in percentage
!Village No. of years (Plots figures in percent) Total 0-2 2.1-5 5.1-10 More than 10
IKapas Hera 100 0 0 0 100 Mithepur 87.5 12.5 0 0 100 ILibaspur 80 20 0 0 100 IKakrola 85.71 14.29 0 0 100 Inner peri-urban 88 12 0 0 100 Bankauli 50 50 0 0 100 Holambi Khurd 20 20 20 40 100 Paprawat 60 40 0 0 100 Middle peri-urban 42.86 35.71 7.14 14.29 100 ~anga1 Thakran 0 100 0 0 100 Jhatikra 0 100 0 0 100 Outer peri-urban 0 100 0 0 100 Total peri-urban 68.29 24.39 2.44 4.88 100
143
Period for wlticlt tlte migrants lived as tenants before owning a ltouse
Those migrants who have constructed their houses in the peri-urban migrated in Delhi in
different periods. They stayed in different areas as tenants before purchasing a plot and
constructing a house in the peri-urban. Data analysis shows that 4.88 percent migrants
who presently have their own house, stayed as tenants for <5 years, 17.07 percent for 6-
10 years, 31.71 percent for 11-15 years, 19.51 percent for 16-20 years and 26.83 percent
for more than 20 years before constructing their house in the peri-urban (Table 5.14).
However, zone-wise analysis shows that 14.29 percent house owner migrants in the inner
peri-urban, 4.00 percent in the middle and 50.00 percent in the outer peri-urban stayed as
tenants for <5 years. 8.00 percent house owner migrants in the inner peri-urban, 28.57
percent in the middle and 50.00 percent in the outer peri-urban stayed as tenants for 6-10
years.
In the inner peri-urban, 28.00 percent and in the middle 42.86 percent house owner
migrants lived as tenants for 11-15 years. 28.00 percent migrants in the inner peri-urban
and 7.14 percent in the middle peri-urban lived as tenants for 16-20 years. 32.00 percent
migrants of inner peri-urban lived as tenants for more than 20 years while the
corresponding percent in the middle peri-urban is 21.43.
Table 5.14
NCT Delhi: Peri-urban
Period for which migrants (owners) lived as tenants before constructing a house. Figures in percent
Village Number of years Total <5 6to10 11 to15 16 to 20 More than20
KaJ>as Hera 0.00 20.00 60.00 20.00 0.00 100 Mithepur 0.00 12.50 12.50 62.50 12.50 100 Libaspur 0.00 0.00 0.00 0.00 100.00 100 Kakrola 14.29 0.00 42.86 14.29 28.57 100 Inner peri-urban 4.00 8.00 28.00 28.00 32.00 100 Bankauli 0.00 25.00 75.00 0.00 0.00 100 Holambi Khurd 0.00 20.00 40.00 0.00 40.00 100 Paprawat 0.00 40.00 20.00 20.00 20.00 100 Middle peri-urban 0.00 28.57 42.86 7.14 21.43 100 Nanga) Thakran 100.00 0.00 0.00 0.00 0.00 100 Jhatikra 0.00 100.00 0.00 0.00 0.00 100 Outer peri-urban 50.00 50.00 0.00 0.00 0.00 100
Total peri-urban 4.88 17.07 31.71 19.51 26.83 100
144
Discussion reveals that highest percentage of house owner migrants in the inner peri
urban that account for 32.00 percent lived as tenants for >20 years while the highest
percentage of such migrants in the middle and the outer peri-urban lived for 11-15 years
and< 5 years respectively. Libaspur is the sample area where 100 percent house owner
migrants have to stay as tenant for more than 20 years before constructing a house. It
shows that migrants have to wait for the longer period in owning a house in the inner
peri-urban than in the middle and the outer peri-urban. This is on account of difference in
land prices, which makes it more difficult to own a house in the inner peri-urban than in
the middle and the outer peri-urban.
5.3.2 Commercial and industrial establishments
The proponents of urban growth theories often try to link the urbanisation process with
industrialisation and even endeavour to explain the former with the help of the later
process and extend such explanation to most of the countries. These twin processes have
some relationship among them.
Industrialisation in the peri-urban broadens the employment opportunities that attract
population from out side. Rapid industrialisation has undoubtedly accelerated the
urbanisation, particularly in and around large metropolis. Although urbanisation and
industrialisation relation hold good at the initial stages and continues till diseconomies
start in any of them, it is the growth of the tertiary and the quaternary functions which
explains modifications of urban structure and form and causes horizontal expansion
(Pathak 1986) 22
Peri-urban areas under study have g1ven rise to the commercial and industrial
establishments of different nature. To understand its dynamics in the process of
urbanisation in the peri-urban, primary data of 62 sample establishments has been
collected and analysed. Before the initiation of the urbanisation process, the limited
traditional commercial establishments like grocery shops were available in the area,
which used to serve these settlements. The importance of these traditional commercial
establishments has been declining and new establishments of urban nature are taking
place.
145
Period of origin of tlte establishments
These establishments have originated in different periods (Table 5.15). Analysis of the
sample data shows that 8.06 percent establishments originated before 1981, 11.29 percent
in 1981-85, 12.90 in 1986-90, 38.71 in 1991-95 and 29.03 in 1995-99. This trend shows
that in each subsequent time interval, percentage of establishments has increased.
Table 5.15
NCT Delhi: Peri-urban
Period of origin of the establishments.
Establishments figures in percent Village Period Total
Before 1981 81-85 86-90 91-95 96-99 Kapas Hera 0.00 0.00 12.50 50.00 37.50 100.00 Mithepur 0.00 0.00 28.57 42.86 28.57 100.00 Libaspur 16.67 16.67 16.67 41.67 8.33 100.00 Kakrola 0.00 12.50 0.00 62.50 25.00 100.00 Inner peri-urban 5.71 8.57 14.29 48.57 22.86 100.00 Bankauli 20.00 20.00 20.00 10.00 30.00 100.00 Holambi Khurd 0.00 11.11 11.11 33.33 44.44 100.00 Paprawat 20.00 20.00 0.00 20.00 40.00 100.00 Middle peri-urban 12.50 16.67 12.50 20.83 37.50 100.00 Nanga! Thakran 0.00 0.00 0.00 66.67 33.33 100.00 Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 Outer peri-urban 0.00 0.00 0.00 66.67 33.33 100.00 Total peri-urban 8.06 11.29 12.90 38.71 29.03 100.00
However, there are variations in the origin ofthe establishments among the zones ofthe
peri-urban. In the inner peri-urban 5.71 percent establishments were set up before 1981
while in the middle, 12.50 percent establishments belong to this period. No
commercial/industrial establishment of this period is observed in the outer peri
urban.8.57 percent establishments of the inner peri-urban belong to the period 1981-85
while 16.67 percent establishments of middle are of this period.
Further analysis of the data shows that up-to 1985, the commercial and industrial
establishments in the peri-urban under study were mainly localised along the highways.
Libaspur in the inner and Bankauli in the middle peri-urban are such areas where the
establishments came up-to 1985 on account of its location on the highway. After 1986,
the impact of Delhi Metropolis is quite visible as the establishments, thereafter, started
coming up in the peri-urban irrespective of its location from the highways. During 1986-
146
90, 14.29 percent ofthe total establishments ofinner peri-urban were established while in
the middl~ peri-urban 12.50 percent of its establishments were set up during this period.
No establishment of urbanising nature was established in the outer peri-urban up-to
I990.During 1991-95, 48.57 percent establishments of the inner peri-urban came into
existence while 20.83 percent establishments ofthe middle and 66.67 percent of the outer
peri-urban came up during this period. During 1996-99, 22.86 percent establishments of
the inner peri-urban, 37.50 percent of the middle peri-urban and 33.33 percent of the
outer peri-urban came into existence. The comparison of the inner and the middle peri
urban shows that higher percentage of establishment came in the inner peri-urban earlier
to the middle peri-urban which implies that urbanisation process in the inner peri-urban
started before the middle peri-urban
State-wise classification of owners of establisltments
The analysis of the data shows that highest percentage of establishment's owners that
account for 48.39 percent belong to Delhi urban area. 16.13 percent owners belong to the
local areas of the peri-urban. Among the outsiders, 12.90 percent owners belong to
Haryana, 6.45 each to Punjab and Uttar Pradesh and 4.84 percent to Rajasthan State.
Other states having very low percentage share in owners of establishments are Bihar,
Himachal Pradesh and Maharastra (Table 5.16) Analysis of the data for the owners
belonging to different states among the peri-urban zones reveals that inner peri-urban has
higher number of state representations in the ownership of establishments. The
representation of different states is reduced as one moves from the inner peri-urban to the
middle and outer peri-urban.
Also, it is observed that the proportion of owners belonging to Delhi and adjoining states
is increased in the middle and outer peri-urban. In the inner peri urban, the proportion of
owners from Delhi is 42.86 percent while the corresponding percentage in middle and the
outer peri-urban is 54.17 and 66.67 percent respectively. The representation of Haryana
in the inner per-urban is 11.43 percent while in the middle and the outer peri-urban it is
12.50 and 33.33 percent respectively. The representation of Punjab in the inner peri
urban is 2.86 percent while in the middle it is 12.50 percent.
147
Table 5.16
NCT Delhi: Peri-urban
State-wise classification of commercial/industrial owners.
Village States (Owners figures in percent Delhi Bihar Uttar Punjab Haryana Rajasthan Himachal Maharastra Local Total
Pradesh Pradesh Kapas Hera 50.00 0.00 0.00 0.00 25.00 0.00 0.00 0.00 25.00 100.00
Mithepur 28.57 14.29 42.86 0.00 14.29 0.00 0.00 0.00 0.00 100.00
Liba~ur 66.67 0.00 0.00 8.33 0.00 16.67 0.00 8.33 0.00 100.00 Kakrola 12.50 0.00 0.00 0.00 12.50 0.00 0.00 0.00 75.00 100.00 Inner peri- 42.86 2.86 8.57 2.86 11.43 5.71 0.00 2.86 22.86 100.00 urban Bankauli 70.00 0.00 0.00 20.00 0.00 10.00 0.00 0.00 0.00 100.00 Holambi 44.44 0.00 0.00 0.00 22.22 0.00 11.11 0.00 22.22 100.00 Khurd Paprawat 40.00 0.00 20.00 20.00 20.00 0.00 0.00 0.00 0.00 100.00 Middle 54.17 0.00 4.17 12.50 12.50 4.17 4.17 0.00 8.33 100.00 !peri-urban Nanga! 66.67 0.00 0.00 0.00 33.33 0.00 0.00 0.00 0.00 100.00 Thakran Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00. Outer 66.67 0.00 0.00 0.00 33.33 0.00 0.00 0.00 0.00 100.00 !peri-urban Total peri- 48.39 1.61 6.45 6.45 12.90 4.84 1.61 1.61 16.13 100.00 iurban
The reason for more representation from Delhi and nearby states in the outer and middle
peri-urban is that the entrepreneurs from the nearby states are more adjusted to the local
environment in these areas. Entrepreneurs from far off places may be feeling unsafe to
open their establishments in such environment, which is not fully urbanised. On the other
hand, the inner peri-urban that is running in the higher stage of urbanising process has
inter-cultural environment where people from far off states live. Such environment
encourages the businessmen even from distant places to start their business.
The proportion of establishment owners belonging to Delhi metropolis is highest in the
peri-urban. This is mainly on account two main reasons. First, with the increasing
urbanisation in Delhi, space for storage of commercial articles has become a problem. To
overcome this problem, Delhi businessmen find way in the peri-urban for construction of
godowns and other storing spaces. Large percentage of godowns in the study area of
Bankauli, Libaspur and Holambi Khurd are either owned or hired by the whole sale
dealers of Naya Bazar, Chawari Bazar and Azad Pur Market. Second, it has been
observed that pollution controlling and law enforcing agencies have been mounting
148
pressure on the polluting industrial establishments in the urban area. As a result, owners
shift their units in the peri-urban where they get cheap land and low govt. pressure on
polluting units.
Though the percentage of owners from local area is low as compared to total percentage
yet it is significant in comparison to the ownership from different states. Significant share
of the own1ership oflocal population is on account of three main reasons. Firstly, with the
conversion of agricultural land to non-agricultural uses, the scope for traditional
occupation has been reduced. As a result, local population especially the farming class
have to find new jobs in other fields. Secondly, with the sale of land, the financial
position of the farming class has become stronger and progressive people from this class
start their business in the village itself as they are used to the village environment.
Thirdly, local people have their own land in the village that helps them to start business.
Thus, local people are coming forward in the establishment of business in their own area.
Living place of tlze establislzment owners
Living place of the establishment's owners depends partly upon the stage of urbanisation
process in the peri-urban. As the urbanisation process is advanced in the peri-urban, the
urban infrastructure like better schools, health services transport etc. are also developed.
As a result, some migrant establishment owners start living in the local area. On the other
hand, in those peri-urban areas where better urban infra structure has not developed, the
migrant owners of establishments either commute daily to the city after working for the
whole day or keep supervisor to look after the unit regularly and make off and on visit to
the unit per their convenience.
Present data of establishment's owners shows that 70.97 percent live in the city while
29.03 percent live in the rural area including 16.13 percent local owners. It shows that
some migrant owners have settled in the same village where their establishments are
located. However, this figure is not uniform throughout the peri-urban (Table 5.17).
54.29 percent owners of the inner peri-urban are living in the city area whereas 45.71
percent are living in the rural area. 91.67 percent owners in the middle peri-urban are
living in the city are~ while 8.33 percent in the rural. In the outer peri-urban, all the
migrants who own the industrial and commercial establishments are living in the city
area.
149
Zonal variation in the percentage of owners living in the peri-urban is on account of
variation in the development of infra structures in different locations. The inner peri
urban has better infra structure facilities and therefore large percentage of establishment
owners live in the local area. However, Libaspur that is located in the inner peri-urban
and has reportedly 100 percent owners living in the city area is the exception. Interview
with the owners for the reason revealed that pollution, which is of very high degree in
this industrialised villages, is the main reason for not living in that area.
Table 5.17
NCT Delhi: Peri-urban
Living place of establishment's owners. Figures in percentage
Village City Rural Total Kapas Hera 37.50 62.50 100.00 Mithepur 42.86 57.14 100.00 Libaspur 100.00 0.00 100.00 Kakrola 12.50 87.50 100.00
Inner peri-urban 54.29 45.71 100.00 Bankauli 100.00 0.00 100.00 Holambi Khurd 77.78 22.22 100.00 Paprawat 100.00 0.00 100.00 Middle peri-urban 91.67 8.33 100.00 Nanga! Thakran 66.67 33.33 100.00 Jhatikra 0.00 0.00 0.00
Outer peri-urban 100.00 0.00 100.00 Total peri-urban l 70.97 29.03 100.00
Workers engaged in commercial and industrial establishments
In the peri-urban, there are different types of industries and other commercial
establishments, which have accommodated number of workers. Data analysis shows that
92.4 7 percent workers engaged in these industries and establishments are the migrants
while 7.53 percent are the local workers (Table 5.18). The reasons for the low percentage
of local workers in the peri-urban establishments have come from two different views.
Interviews with the owners of the establishment reveal that they don't employ the local
people in their establishments because they don't work in the local area sincerely.
While on the other hand, 92 percent local population surveyed are of the opinion that they
cannot afford to work m the industries on account of low wages and long working hours.
8 percent respondents are of the opinion that they want to work in the industries and
150
establishment but the owners don't employ the local workers because of their
apprehension that they will not be able to exploit them as they practise with the migrants.
On the basis of the analysis of the wages in the local area and the number of working
hours, the views of the local population have a strong basis for not working in the local
industries and establishments. The average wages for unskilled workers for the beginners
is Rs.600-800 per month while for the experienced persons, it is rupees 800-1200 for
eight hours work schedule with one weekly holiday. 10 percent workers have observed
getting Rs.IS00-1800 per month for working 12 hours daily. These wages are low in
comparison to approved wages in Delhi. Most of the establishments and industries are in
the informal sector and therefore don't follow the wage rules. Thus, owners are getting
migrant workers on their terms and decide the wage rates, which is not possible with the
local workers who are aware of their rights.
Table 5.18
NCT Delhi: Peri-urban
Percent of workers from different regions working in industries and establishments.
States Percent of workers Uttar Pradesh 43.01 Bihar 30.11 West Bengal 1.08 Nepal 2.15 Local 7.53 Haryana 8.60 Himachal Pradesh 1.08 Rajasthan 6.45 Total 100.00
Region-wise analysis of the workers engaged in the peri-urban establishments and the
industries show that major percentage of workers which accounts for 40.43 percent
belongs to Uttar Pradesh while the second highest percentage of workers belong to Bihar.
About 70 percent of the workers engaged in peri-urban industries and establishments
belong to these two states. Haryana has a share of 8.86 percent workers engaged in local
industries and establishments.2.2 percent workers in these establishments are Nepalese
and 6.6 percent are from Rajasthan. Other states that have. low percentage of workers in
peri-urban industries and establishments are West Bengal and Himachal Pradesh.
151
Living Place of workers engaged in commercial and industrial establishments
Data analysis shows that 72.77 percent workers engaged in peri-urban commercial and
industrial establishments are living in the same locality while 21.22 percent workers are
commuting from nearby peri-urban or urban areas from different distances. I 0.10 percent
workers are commuting from less than 5 kilometres distance; 6.6 percent from 5-l 0
kilometres and5.53 percent from more than 10 kilometres distance (Table 5.19).
Table 5.19
NCT Delhi: Peri-urban
Living place of workers engaged in industries and other commercial establishments.
Living area Living premises Distance travelled by commuters
Local Commuting Total In rented In working Total <5 5-10 >10 None
houses premises
77.42 22.58 100.00 65.59 34.41 100.00 10.75 6.45 5.37 77.42
The living condition of these workers are very poor as they are low paid workers ~d as
such are not able to afford good accommodation and other amenities. 65.59 percent of
these workers are living in rented accommodations while 34.41 percent are living in the
working premises either in godowns, shops or factories. The living conditions in these
premises are very poor.
Size of establishments •
The increasing urbanisation also affects the size of the establishments. Analysis of the
data shows that highest percentage of establishments in the peri-urban that accounts for
45.71 percent belongs to medium category (201-500 sq. yard). However, there are great
variations in the size of establishments among different zones of peri-urban. The inner
peri-urban has highest percent of establishments in the medium size group while the
middle and outer peri-urban have highest percentage in the very high and high size
groups respectively (Table 5.20). The high percentage of medium size establishments in
the inner peri-urban reflect the advance stage of urbanisation process which increase the
price as well as the rent of the establishments and as such, the businessmen cannot afford
to hire large spaces for their establishments
152
Table 5.20
NCT Delbi: Peri-urban
Classification of size of the commercial/industrial premises
Village Area in Stl_ Yards Total Very low Low Medium Medium Higb Very bigb (%)
(Below 100) (101-200) (201-500) bigb (501- (1001- (More 10001 2000}_ tban2000}_
Kapas Hera 12.50 12.50 50.00 0.00 0.00 25.00 100.00 Mithepur 85.71 0.00 14.29 0.00 0.00 0.00 100.00 Libaspur 0.00 33.33 66.67 0.00 0.00 0.00 100.00 Kakrola 0.00 37.50 37.50 12.50 0.00 12.50 100.00 Inner peri-urban 20.00 22.86 45.71 2.86 0.00 8.57 100.00 Bankauli 0.00 0.00 20.00 20.00 20.00 40.00 100.00 Holambi Khurd 11.11 22.22 22.22 22.22 11.11 1l.l1 100.00 Paprawat 0.00 0.00 40.00 0.00 0.00 60.00 100.00 Middle peri-urban 4.17 8.33 25.00 16.67 12.50 33.33 100.00 Nanga! Thakran 0.00 0.00 0.00 0.00 66.67 33.33 100.00 Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Outer peri-urban 0.00 0.00 0.00 0.00 66.67 33.33 100.00 Total peri-urban 12.90 16.13 35.48 8.06 8.06 19.35 100.00
On the other hand, the land price and the rent in the middle and the outer peri-urban is
cheaper and businessmen can afford to pay price/rent of the premises. Secondly, as the
space of the inner peri-urban is reduced, its value is increased and the units occupying
large space are closed and give rise to other establishments that occupy less space and
generate high profits. In the outer peri-urban, no establishment could be observed
occupying low or medium size space.
Choice for Location of Establishments
Though, the general reasons for the location of establishments in the peri-urban are
visible yet each owner has its own reason for the location of his establishment in the
particular location in the study area. Analysis of the interview with the owners (Table
5.21) shows that highest percent of owners have chosen the location for their
establishment on account of nearness to the market of Delhi Metropolis. 19.35 percent
owners have located their establishments because they belong to that village. They are
owners of the premises and as such don't have to pay any price/ rent. 16.13 percent
owners opened their establishments because of cheap land in the area while 12.90 percent
owners established because of cheap rent. Owners express that though the prospects of
business are better in the urban than the peri-urban, payment of rent or price of the
premises is beyond their means and hence prefer to locate their establishments in this
area. 9.68 percent owners have set up their establishments because the area is located
153
along the highway and this location provides them fast and cheap transportation of raw
material and fmished goods. Other reasons are availability of skilled labourers from the
metropolis, nearness to raw material, regular power supply and other miscellaneous
reasons.
Table 5.21
NCT Delhi: Peri-urban
Reasons for the choice of location for the establishment.
Reasons for the location of establishments (Figures in percentage) Village Cheap Cheap Near to Own Highway Skilled Near to Regular Others Total
land rent market Village labourers raw Electricity Available material
Kapas Hera 0.00 12.50 37.50 37.50 12.50 0.00 0.00 0.00 0.00 100.00 Mithepur 0.00 0.00 28.57 14.29 0.00 0.00 0.00 0.00 57.14 100.00 Libaspur 33.33 25.00 41.67 0.00 0.00 0.00 0.00 0.00 0.00 100.00 Kakrola 0.00 0.00 0.00 75.00 0.00 12.50 0.00 0.00 12.50 100.00 loner peri-urban 11.43 11!43 28.57 28.57 2.86 2.86 0.00 0.00 14.29 100.00 Bankauli 10.00 0.00 30.00 0.00 50.00 0.00 10.00 0.00 0.00 100.00 Holambi Khurd 0.00 11.11 0.00 22.22 0.00 0.00 11.11 55.56 0.00 100.00 Paprawat 80.00 20.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 Middle peri-urban 20.83 8.33 12.50 8.33 20.83 0.00 8.33 20.83 0.00 100.00 Nangal Thakran 33.33 66.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Outer peri-urban 33.33 66.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 Total peri-urban 16.13 12.90 20.97 19.35 9.68 1.61 3.23 8.06 8.06 100.0()
However, these reasons are not uniformly applicable to all the establishment owners of
the peri-urban. 30 percent owners of the inner peri-urban have chosen the location on
account of nearness to the market while the corresponding figure for the middle peri
urban is 12.50 percent. Village Libaspur in the inner peri-urban has the highest percent
owners who expressed this as the main reason for the location of their establishments in
the area. This village is very near to Delhi metropolis and also located on the highway.
Having good access to the metropolis, it is very easy to transport the goods to the
Metropolitan market. Also, the highest percent of owners of the establishments of this
village reside in the metropolis and it is very easy for them to reach to their residence
after closing the establishment in the evening. Thus, easy access for commuting and
transportation of raw material and finished goods between the peri and the metropolis are
the main reasons for the areas located close to the metropolis to attract the businessmen
to set up commercial and industrial establishments.
154
Cheap rent is the main reason in the outer peri-urban for opening commercial and
industrial establishments. 66.67 percent establishments in this zone have come up on
account of this reason while the corresponding figures for the middle and the inner peri
urban are 8.33 and 11.43 percent respectively. The outer peri-urban lies in an active
agricultural belt and the farmers compare the rent with the value of agricultural
production, which is very low. Hence, the premises for establishments are available at
cheap rates.
Cheap land, nearness to highway and regular supply of electricity are equally important
main reasons for opening of establishments in the middle peri-urban. In this sample zone,
80 percent establishment owners of the village Paparawat opened their establishment on
account of cheap land in the area while 50 percent in the Bankauli established on account
of nearness to highway. 55.00 percent in Holambi Khurd set up their establishments on
account of regular electricity supply.
From the above discussion it is clear that nearness to Delhi market and availability of
space in the peri-urban are the two main reasons for the establishment of commercial and
industrial establishments in the area. All other reasons that have more or less localised
effect revolve around these main reasons.
Nature of establishments
Different types of establishments have come up in the peri-urban and its intensity
depends upon the stage of urbanisation process in the area. 66.13 percent establishments
ofthe sample survey belong to the factories of different kinds, 14.52 percent to godowns,
11.29 percent to shops, 4.84 percent to workshops and 3.23 percent to stockyards.
However, there is variation in the distribution of these establishments among different
zones ofperi-urban. In the inner per-urban 57.14 percent establishments ofthe urbanising
nature belong to factories while in the middle and the outer peri-urban 75. 00 and 100
percent establishments of urbanising nature are factories respectively (Table 5.22).
Comparative low percentage of factories to the total establishments in the inner peri
urban are on account of high growth of population in this zone which give rise to the
demand for other activities besides industries. Therefore, businessmen establish other
commercial activities in this zone to cater to the needs of the growing population and thus
155
reduce the percentage of factories to total establishments. On the other hand, the outer
peri-urban where the population growth is not so high and demand for daily needs are
met by establishments of rural nature locally or in the adjoining areas, businessmen don't
feel it profitable to open establishments other than factories that have market outside the
local area.
Workshops that cater to the needs of the local population have higher percentage in the
inner peri-urban than in the middle. No observation in the sample study is observed in the
outer peri-urban belonging to workshop. It reveals low demand for such establishments in
the area. Godowns that are the storing places for bulk commodities have higher
percentage in the middle peri-urban than the inner. No observation of godown came
across in the outer peri-urban. Godowns in the former two regions are located on the G.
T. road which have good transportation network to Delhi metropolitan and all other states
of India. The higher percentages of godowns in the middle peri-urban are on account of
cheap land as compare to the inner peri-urban. No godown establishment in the outer peri
urban is partly on account ofhigh distance from the metropolis and the highway.
Table 5.22
NCT Delhi: Peri-urban
Nature of establishments.
Establishments (Figures in percentage)
Village Workshop Factory Shop Car-vard Godown Total KapasHera 12.50 37.50 25.00 25.00 0.00 100.00 Mithepur 14.29 14.29 71.43 0.00 0.00 100.00 Libaspur 0.00 66.67 0.00 0.00 33.33 100.00 Kakrola 0.00 100.00 0.00 0.00 0.00 100.00 Inner peri-urban 5.71 57.14 20.00 5.71 ll.43 100.00 Bankauli 0.00 60.00 0.00 0.00 40.00 100.00 Holambi Khurd 0.00 88.89 0.00 0.00 11.11 100.00 Paprawat 20.00 80.00 0.00 0.00 0.00 100.00 Middle peri-urban 4.17 75.00 0.00 0.00 20.83 100.00 [Nangal Thakran 0.00 100.00 0.00 0.00 0.00 100.00 Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 Outer peri-urban 0.00 100.00 0.00 0.00 0.00 100.00 Total peri-urban 4.84 66.13 Jl.29 3.23 14.52 100.00
Regarding shops of urban nature, the percentage is highest in the inner peri-urban. The
growing population in the traditional villages and unauthorised colonies in the inner peri
urban has increased the demand for shops of different kinds. As a result, many new shops
having urban characters have come up in the inner peri-urban to cater to the needs of the
156
population. However, percentage of shops of urbanising nature in the middle and the
outer peri-urban is low and thus has not been considered in the sample of establishments.
Vehicle yards that has low percentage among the total sample establishments are
localised in Kapas Hera village in the inner peri-urban where Maruti Udyog is nearby and
cars are stocked in yards in this area. Its showrooms are located in the city and cars are
shifted from these yards as per the requirement at selling sites.
Percentage of factory establishment in the inner peri-urban has great variation within its
sample areas. It is very essential to discuss these variations to understand the causes for
difference in the rate of development of similar establishments in similar locations. Kapas
Hera and Mithepur have very low percentage of factories as compared to Libaspur and
Kakrola although all the four sample areas are located in four comers of Delhi in a
similar distance range' from the urban boundary. Low percentage of factories in Mithepur I .
is on account of two main reasons. Firstly, the settlement is located across twin canals of
Gurgaon and Agra and has very narrow bridge to link it with the main city. There is
always traffic jam over the bridge. As a result, the businessmen are not interested to set
up industries in this area. Secondly, there is not sufficient space in the Lal Dora to
accommodate large and medium industries and hence does not have much scope for
further industries. Low percentage of factories in Kapas Hera village is on account of
altogether different reasons. The Haryana industrial area is located very near to Kapas
Hera and industrialists like to have industries in regular industrial area than in the village
that does have many problems. Another reason which is closely related with the former is
that, though industrial area of Haryana has opened employment avenues it has not made
any living arrangement for labourers. As a result, labourers find their living place in the
nearby villages and Kapas Hera being near to the industrial area is housing large number
of factory workers.
Local people who have large size plots in the Lal Dora prefer to construct small size
rooms for rent instead of factory sheds like Libaspur. Discussion highlights that it is not
merely location of area from the urban boundary that shapes the urbanisation process in
the peri-urban but also many other local factors that play important role in this direction.
157
Nature of activities
The nature of establishments does not clearly mention the activity it is running. Analysis
ofthe activities data shows that 41 percent establishments are engaged in manufacturing,
17.74 in processing, 16.13 percent in storage, 9.68 percent in fabrication, 6.45 percent
exclusively in selling, 4.84 percent in repairing and 3.23 percent in others. Though 66.13
percent establishments surveyed are factories, all are not exclusively engaged in
manufacturing.
Table 5.23 shows that 14.29 percent activities in the inner and 20.83 percent in the
middle peri-urban are engaged in storing and major activities of storing are rice and Dal
godowns of Libaspur in the inner peri-urban and Holambi Khurd and Bankauli in the
middle peri-urban.48 percent establishments of the inner peri-urban and 37.50 percent
activities in the middle peri-urban are engaged in manufacturing of different kinds. 8.57
percent establishments of the inner, 8.33 percent of the middle and 33.33 percent of the
outer are engaged in fabrication and major activities under this class are fabrication of
cement pipes in Kakrola in the inner, Paprawat in the middle and Nanga! Thakran in the
outer peri-urban.
Table 5.23
NCT Delhi: Peri-urban
Nature of activities of the establishments.
Activities {fif!ures in percental!e) Village Storing Manufacturin2 Repairin2 Fabrication Processing Selling Others Total Kapas Hera 12.50 37.50 12.50 12.50 12.50 12.50 0.00 100.00 Mithepur 0.00 14.29 14.29 0.00 0.00 42.86 28.57 100.00 Libaspur 33.33 66.67 0.00 0.00 0.00 0.00 0.00 100.00 Kakrola 0.00 62.50 12.50 25.00 0.00 0.00 0.00 100.00 Inner peri-urban 14.29 48.57 8.57 8.57 2.86 11.43 5.71 100.00 Bankauli 40.00 10.00 0.00 0.00 50.00 0.00 0.00 100.00 Ho1ambi Khurd 11.11 66.67 0.00 0.00 22.22 0.00 0.00 100.00 Paprawat 0.00 40.00 0.00 40.00 20.00 0.00 0.00 100.00 Middle peri-urban 20.83 37.50 0.00 8.33 33.33 0.00 0.00 100.00 Nanga) Thakran 0.00 0.00 0.00 33.33 66.67 0.00 0.00 100.00 Jhatikra 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Outer _j)eri-urban 0.00 0.00 0.00 33.33 66.67 0.00 0.00 100.00 Total peri-urban 16.13 41.94 4.84 9.68 17.74 6.45 3.23 100.00
2.86 percent establishments of the inner, 33.33 percent ofthe middle and 66.66 percent of
the outer peri-urban are engaged in processing and the major activity in this class is Dal
(Pulses) and Rice Mills in Bankauli in the middle and Dal Mills ofNangal Thakran.
158
Market for raw material and finished products
Among the establishments surveyed about 70 percent are engaged in manufacturing,
processing and fabrication. These establishments require raw material and market for its
finished products. Data analysis of these establishments shows that58.06 percent raw
material used in these establishments is procured from Delhi urban area and 14.52
percent from the local peri-urban. However, there is zonal variation in the procurement
percentage from different areas. In the inner peri-urban, 68.57 percent raw material is
purchased from Delhi urban area while the corresponding percentage for middle and
outer peri-urban is 45.83 and 33.33 percent respectively. Other states/areas supplying raw
material to the establishments of the inner and middle peri-urban are Haryana, Local peri
urban, Punjab, Uttar Pradesh, Rajasthan, Madhya Pradesh and some unspecified areas of
north, south and all over India (Table 5.24). In outer peri-urban, local and Delhi urban
area supplies the raw material to the manufacturing and processing units.
Table 5.24
NCT Delhi: Peri-urban
Market for raw material and finished goods.
State/Area Percent raw material procured from Percent finished product sold in
Inner Middle Outer Total Inner peri- Middle Outer peri- Total peri- peri- peri- Urban peri- Urban
Urban Urban Urban Urban Delhi 68.57 45.83 33.33 58.06 51.43 33.33 33.33 43.55
Haryana 8.57 4.17 0.00 6.45 0.00 '4.17 0.00 1.61
Local 8.57 16.67 66.67 14.52 20.00 0.00 0.00 11.29
Punjab 2.86 4.17 0.00 3.23 0.00 0.00 0.00 0.00
Uttar Pradesh 0.00 4.17 0.00 1.61 0.00 0.00 0.00 0.00
Rajas tan 0.00 4.17 0.00 1.61 0.00 0.00 0.00 0.00
Madhya 0.00 12.50 0.00 4.84 0.00 0.00 0.00 0.00
North India* 0.00 8.33 0.00 3.23 0.00 20.83 66.67 11.29 South India* 8.57 0.00 0.00 4.84 5.71 0.00 0.00 3.:B All overlndia* 2.86 0.00 0.00 1.61 20.00 16.67 0.00 17.74
Foreign 0.00 0.00 0.00 0.00 2.86 25.00 0.00 11.29
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
*Respondent d1d not specified the state
As far as market for finished goods is concerned 43.55 percent product is supplied in
Delhi urban area while 11.29 percent goes to local area godowns. Rest of the product is
distributed all over India in different states. 11.29 percent of the product is exported to
different countries in which rice is the main product.
Discussion shows that more than 70 percent of the raw material and about 55 percent of
the fmished product find their way to Delhi urban and the local peri-urban area. This
159
gives support to the reason that nearness to Delhi market is the main reason for the
development of establishments in the peri-urban.
5.3.3 Land sale and prices
Land conversion to non-agricultural uses in the formal and informal level is another
component of urbanisation process in the peri-urban. Increasing demand for land push up
the land prices in the area which attracts the speculators in the market. The nature of land
sale and the prices depends upon the level of urbanisation process in the area. The land
near the urban area where the process of urbanisation is at the higher level is sold or
purchased more for the non-agricultural purposes while the areas away from the
Metropolitan, the sale is still more from farmer to farmer/ farmhouse owner.
Table 5.25
NCT Delhi: Peri-urban
Percentage of land sale to different agencies.
Agencies (figures in percentage)
Village Farmer/ Speculator. Govt. Businessman Total Farmhouse
owner Kapas Hera 50.00 36.36 13.64 0.00 100.00 Mithepur 0.00 100.00 0.00 0.00 100.00 Libaspur 0.00 100.00 0.00 0.00 100.00 Kakrola 0.00 21.28 78.72 0.00 100.00 Inner peri-urban 4.45 64.37 31.17 0.00 100.00 Bankauli 0.00 4.44 0.00 95.56 100.00 Holambi Khurd 26.14 0.00 73.86 0.00 100.00 Paprawat 100.00 0.00 0.00 0.00 100.00 Middle peri-urban 41.48 0.74 41.85 15.93 100.00 Nanga) Thakran 0.00 0.00 0.00 100.00 100.00 jJhatikra 73.68 0.00 0.00 26.32 100.00 !Outer peri-urban 64.78 0.00 0.00 35.22 100.00 Total peri-urban 33.48 27.75 23.16 15.61 100.00
Primary survey of the farmers have been conducted to collect data of the land sale to
different purchaser groups to understand the dynamics of land conversion with the
process of urbanisation since 1975. Analysis of the data shows that 33.48 percent of the
land sale took place between farmer to farmer or city based farmhouse owners. 27.75
percent land sold by the farmers was purchased by the speculators, 23.16 percent by the
160
i'
govt and 15.61 percent by the businessmen. However, there are great variations in the
percent of land sale to different agencies in different zones of peri-urban.
In the inner peri-urban, 64.37 percent reported land sale has been made to the speculators,
31.17 percent is acquired by the govt for various housing and other schemes and4.45
percent is sold to the farmers or farm house owners (Table 5.25). In village Mithepur and
Libaspur, 100 percent land sale by the farmers have been made to the speculators since
1975. Being located in the declared flood prone areas, Govt has not acquired land for its
housing and other projects in this area. These areas are located adjoining to Delhi
Metropolis and the demand for land to the non-agricultural purposes is very high. In
Kapas Hera, 50 percent of land is sold to the farmhouse owners. This is farmhouse area
and the buyers are from the eftluent class who purchase land at exorbitant rates. Since,
the land rates are very high, the unauthorised colonies, which are considered poor man's
area have not spread like Mithepur and Libaspur. In Kakrola, the purchase of land by
speculators was in progress when govt acquired land for its Papan Kalan Housing Project.
In this area, highest percent of land sale by the farmers is covered under land acquisition
by the Govt.
In the middle peri-urban, out of the total sale of land by the sample farmers since 1975, '
41.48 percent is sold to the farmers, 0.74 percent to the speculators, 41.85 percent is
acquired by the Govt. and15.93 percent is sold to the business men. In Bankauli, out of
the total land sale by the farmers, the businessmen have purchased 95.56 percent. Most of
them have constructed unauthorised godowns in the area. Since the demand for
residential land is not so high, colonisation process is low and hence the percent of land
purchased by the speculators is also low. In Holambi Khurd, 73.86 percent of the land
sale has been made to the Govt for the powerhouse and the Bawana industrial area. In
Paprawat, 100 percent land sold by the farmers is purchased by the farmers/ farmhouse
owners as the village lies in the farmhouse area. In the outer peri-urban 64.78 percent of
the total land sale is made to the farmers or farmhouse owners and 35.22 percent to the
businessmen. Land is not purchased by the speculators or acquired by the govt. in the
sample villages of this zone as the same is still away from the Delhi Metropolis.
161
Discussion shows that percentage of land sale to the speculators is highest in the inner
peri-urban, to the Govt in the middle peri-urban and to the farmers and farmhouse owners
in outer peri-urban. The higher percentage of the land sale to the speculators in the inner
peri-urban is on account of higher rate of urbanisation process, which is evident from the
population growth. Higher rate of population growth and the increasing urbanising
activities require more space. In the absence of regular provision of land or housing,
people go for unauthorised purchases of the agricultural land. Since farmer don't deal in
the small plots from his farm, he sells in bulk to the speculators who in tum divide the
land into small pieces as per the requirements of the buyers and sells at higher rates.
Temporal/and sale in the peri-urban
Temporal variations in land prices in the peri-urban measures the urbanisation process in
the economic terms where as percentage of land sale by the farmers in different periods
measures in physical terms. It has already been discussed that the farmers sell land to
various agencies in different proportions in the peri-urban. Here, the spatial and temporal
variation in the percentage of land sale is discussed.
Out ofthe total reported land sale by the sample farmers during 1975-99, 24.85 percent
has been sold during 1975-80, 13.19 percent during 1981-85,35.64 percent during 1986-
90, 16.28 percent during1991-95 and 10.04 percent during 1996-99 (5.26).
However, there are variations in the sale of land in different zones of the peri-urban
depending upon the degree of urbanisation process. In the inner peri-urban, of the total
sale of land from 1975-99, 38.54 percent has occurred between 1975-80 while in middle
peri-urban only 2. 73 percent of its sale occurred during this period. In the outer peri
urban, of the total land sale by the farmers, 37.83 percent is sold during this period.
Highest land sale has been occurred in Libaspur during this period where the urbanisation
process have started with the establishment of industries in the Lal Dora and unauthorised
colonies in the agricultural hind. As a result, the demand for land had increased.
162
Table 5.26
NCT Delhi: Peri-urban
Temporal (1975-99) percentage of land sale.
Figures in percentage
Village 1975-80 1981-85 1986-90 1991-95 1996-99 Total
Kapas Hera 14.29 9.52 57.14 19.05 0.00 100.00
Mithepur 54.17 22.92 22.92 0.00 0.00 100.00
Libaspur 75.47 22.64 0.00 0.00 1.89 100.00
Kakrola 12.05 10.84 6.02 71.08 0.00 100.00
Inner peri-urban 38.54 16.59 13.66 30.73 0.49 100.00
Bankauli 0.00 10.32 83.33 4.76 1.59 100.00
Holambi Khurd 0.00 0.00 13.79 1.72 84.48 100.00
Paprawat 16.67 27.78 55.56 0.00 0.00 100.00
Middle peri-urban 2.73 10.45 60.45 3.18 23.18 100.00
!Nanga! Thakran 0.00 13.04 34.78 30.43 21.74 100.00
IJhatikra 44.25 12.54 28.76 13.27 1.18 100.00
Outer peri-urban 37.83 12.61 29.63 15.76 4.16 100.00
Total peri-urban 24.85 13.19 35.64 16.28 10.04 100.00
Source: Primary survey
During 1981-85, inner peri-urban has again experienced the higher percentage of land
sale than the middle and the outer peri-urban. During 1986-90, the middle peri-urban has
experienced more than 50 percent of its land sale while the sale percent in the inner peri
urban is decreased to 13.66 percent during this period. The outer peri-urban has
experienced higher percent of land sale than its previous time interval. Village Bankauli
where transaction between the farmers and the businessmen took place at large scale for
the construction godowns experienced highest land sale percent during this period.
During 1991-95, the inner peri-urban has experienced 30.73 percent of its land sale while
middle peri-urban has experienced 3.18 percent and the outer 15.76 percent. The higher
percent of land sale in the inner peri-urban is on account of land acquisition by Govt in
Kakrola sample area where 71.08 percent of its sale has occurred during this period. In
1995-99, the land sale percent has been reduced to 0.49 percent in inner peri-urban while
in the middle and the outer, the proportion is 23 .18 and 4.16 percent respectively. The
higher percentage of land sale in middle peri-urban during this period is on account of
land acquisition in the Holambi Khurd where land has been acquired by the Govt. for
163
Bawana industrial area. The low percent of land sale in the inner peri-urban during this
period is on account of drastic reduction in the availability of land for sale. Farmers have
smallholdings and are keeping it for speculation in the future and thus the sale of
agricultural land has significantly reduced.
Discussion reveals that urbanisation process has direct relation with land sale in the peri
urban. The occurrence of more than 50 percent land sale between 1975-85 in the inner
peri-urban in comparision to about 20 percent in the middle peri-urban in the same period
highlights that urbanisation process in the inner peri-urban started before middle peri
urban. Further, as discussed in the land sale to different agencies, more than 95 percent
sale in the inner-peri-urban has been made to speculators, govt., and businessmen, who
directly or indirectly used the land for non-agricultural purposes. This percentage is less
than 60 percent in niiddle peri-urban which further supports the discussion that there is
variation in the urbanisation process in different zones.
Land prices
Process of urbanisation in the peri-urban provides dynamism to land ~rices. As the
urbanising activities are increased, the land prices start rising. Peri-urban has multiple
land prices and for the purpose of analysis it has been divided into two parts. First, the
agricultural land prices and second, the commercial and residential land prices. The
agricultural land prices are dual in nature i.e. the prices which the farmer gets by selling
the land to the govt or to the individual at govt rates and the prices, the speculator or any
individual pays to the farmers for land at competitive rates which is generally higher than
the govt prices. First is known as formal while the later is known as informal land prices.
Data of the land prices prevailing in different periods in the informal transactions is
collected from the farmers who sold land at competitive rates in the open market and
confirmed its authenticity from the persons engaged in the sale and purchase of land in
the area. Data about the formal land sale is compiled from the secondary source upto
1988 and from 1989-99 from the farmers who have sold land in the formal transactions.
Agricultural land prices: Table 5.27 shows that during 1975-81, average per acre
agricultural land prices in the informal transactions is 13 thousand rupees while the govt
land prices is 13.9 thousand per acre. However, zone-wise average per acre informal
164
agricultural land prices in the inner peri-urban isl2.5 thousand rupees while in the middle
and outer peri-urban it is 16.7 and 10 thousand rupees respectively. The highest land
prices are found in the Holambi Khurd in that period in the middle peri-urban while the
lowest are found in Jhatikra and Nangal Thakran in the outer peri-urban. The land price
variation between the formal and informal and among the different zones is not high
during this period which reflects that urbanisation process in the area under study is not
so significant during this period.
Table 5.27
NCT Delhi: Peri-urban
Formal and informal per acre agricultural land prices during 1975-99.
Village Informal Figures i11 '000' rupees
1975-80 1981-85 1986-90 1991-95 . 1996-99
Kapas Hera 17 100 576 3000 8000
Mithepur 10 200 500 2000 8000
Libaspur 12.8 200 1000 2000 4000
Kakrola 10 100 500 1500 4000
Inner peri-urban 12.5 150 644 2125 6000 Bankauli 15 100 200 950 1000
Holambi Khurd 20 100 200 800 1300
Paprawat 15 60 110 500 2000
Middle peri-urban 16.7 86.7 170 750 1433.3 Nanga! Thakran 10 100 150 300 500
Jhatikra 10 100 150 650 800
Outer peri-urban 10 100 150 475 650
Total peri-urban 13 J12.2 321.3 1116.7 2694.4
Formal Average govt land prices 13.9* 32* 51.7* 299 673.7
Source: primary survey
* Compiled from Diwakar Ashok (1991) Urban Expansion and Rural Land Acquisitiqn in the Fringe
Villages: A Case Study of Union Territory of Delhi- Unpublished Ph.D. Thesis, J.N.U.,New Delhi
During 1981-85, the land price in the informal transactions is 112.2 thousand rupees per
acre while the corresponding govt price is 32 thousand. The variation in land prices has
started growing between the informal and formal transactions and among the different
zones located at different distances from Delhi Urban Agglomeration. In the inner peri-
165
urban, per acre agricultural land prices in the informal transactions are 150 thousand
rupees while in the middle and outer peri-urban it is 86.7 and 100 thousand rupees
respectively. The highest per acre agricultural land prices are observed in the Libaspur
and the Mithepur where unauthorised colonies have started coming up at a rapid rate and
land speculators become more active during this period. The lowest agricultural land
prices are observed in Paprawat village.
During 1986-90, the average agricultural land prices in the formal transactions are 51.7
thousand rupees per acre while in the informal transaction, the reported average
corresponding land price are 321.3 thousand rupees. However, the inner peri-urban has
the highest informal average agricultural land prices accounting for 644 thousand rupees
per acre while the corresponding prices in the middle and the outer peri-urban are 170
and 150 thousand rupees respectively. The highest agricultural land prices are observed
in Libaspur while the lowest are found in Paprawat during this period.
During 1991-95, the average govt agricultural land prices are 299 thousand rupees per
acre while average informal land prices in the peri-urban are 1116.7 thousand rupees.
However, inner peri-urban has highest land prices accounting for 2125 thousand per acre.
Per acre informal land prices in the middle and outer peri-urban are750 and 475 thousand
respectively. During 1996-99, the average formal agricultural land prices is 673.7
thousand per acre while the corresponding average informal land prices is 2694.4
thousand rupees per acre. However, in the inner peri urban the average informal
agricultural land prices are 6000 thousand rupees per acre while the corresponding prices
in the middle and the outer peri- Urban are 1433.3 and 650 thousand rupees respectively.
Discussion reveals that variation in the formal and informal agricultural land prices has
been on the rise since 1975. However, this variation is more significant when the formal
land price are compared with informal land prices in the inner peri-urban (Fig 5.2) where
the speculators are very active and the unauthorised colonisation is on the rise. They
purchase land from the farmer at exorbitant rates and further sell out at higher rates in
small residential plots.
166
NC T Delhi: Pe ri-u1·bun
Average(Forma1 & informal) Agricultural Land Prices 1975-99
7 000
6000
,.; .... 5000
g
3. 4 000
0 0 3000 9
·= .; 20 0 0 ~
100 0
0
1975 -8 0
-+- Inner peri-urban Outer peri-urban
Source: primary surve~·
Informal
19 81-8 5 19 8 6-90 1991-95 1996 -99
perio d
Middle peri-urban F orma l agricultural land prices
Fig. 5.2
Data of formal agricultural land prices for the period 1975-1990 compiled from: Diwakar Ashok (199 1)
Urban Expansion and Rural Land Acquisition in the Fringe Villages: A Case Study of Union Territory of
Delhi- Unpublished Ph.D. Thesis, J.N.U. .New Delhi
---The variation in the formal agricultural land prices in general and informal land prices in
the outer peri-urban has been narrowed down in 1991-95 with the higher rate of increase
in formal land prices during this period. Further rise in formal land prices has left behind
the informal land prices in the outer peri-urban during 1996-99. However, in the inner
and the middle peri-urban, the informal agricultural land prices remained high than the
formal agricultural land prices during all the time.
Commercial and residential land prices: Although, the mcrease m agricultural land
prices at differential rates in the peri-urban indicates the level of urban isation process, the
real measure is the informal land prices for the residential and commercial land where the
control is in the hands of speculators who play with the land prices as the urbanisation
process advances.
167
Table 5.28
NCT Delhi: Peri-urban
Residential and commercial land prices.
(Prices in rupees per sq. Yard)
1985 1999
Village In Lal Dora Along main road A way from both In Lal Dora Along maio road Away from both
Kapas Hera 400 800 250 3500 10000 2000
Mithepur 700 300 250 3000 6000 1500
Libaspur 500 800 200 5000 12000 1000
Kakrola 400 1000 250 3000 8000 1500
Inner peri-urban 500 725 238 3625 9000 1500
Bankauli 400 ·, 500 150 1500 8000 1000 Holambi Khurd 400 400 150 1500 3000 500 Paprawat 200 200 150 1400 4000 500
Middleperi-urban 333 367 150 1467 5000 667 fNangal Thakran 200 300 100 1000 2000 500
!Jhatikra 100 200 100 500 1000 300
Outer peri-urban 150 250 100 750 1500 400
Total peri-urban 328 447 163 1947 5167 856
Analysis ofthe data shows that during 1985, the average land prices (per sq. yard) in the
Lal Dora is Rs. 328 per sq. yard while it is Rs. 447 along the main road and Rs. 163 away
from both Lal Dora and main road. In 1999, it has increased to average price ofRs. 1947
in the Lal Dora, Rs. ~ 167 along the main road and Rs. 856 away from both Lal Dora and
the main road. The average rise in land prices in the peri-urban is higher along the main
road followed by Lal Dora in the absolute terms (Table 5.28) as well as in the percentage
(fig.5.3). However, there is variation in the land prices in different zones ofthe peri-urban
which is described below: -
In the Lal Dora: Average land prices in the inner peri-urban during 1985 is Rs.500 per
sq. yard while it is Rs. 383 in the middle peri-urban and Rs. 150 in the outer peri-urban. It
has increased to Rs. 3625 in the inner peri-urban, Rs. 1467 in the middle peri-urban and
Rs. 750 in the outer peri-urban in 1999. This shows that inner peri-urban has experienced
highest rise in per sq.yards land prices both in absolute value as well as in percentage
form during 1985-99. The highest land prices in the Lal Dora are observed in Libaspur
during 1999 where the industrial growth has increased the land value to this level.
168
I l:l.
NCTDelhi: Peri-urban
Percentage rise in commercial and residential land prices (1985-99)
1400
1200
1000
800
600
400
200
0 In lal dora Along main road
Locations of la11d
A\\lly from both
(:!)Inner peri-urban 11111 Middle peri-urban D Outer peri-urban-~ ~==================================================~
Fig.5.3
Along the main road: During 1985, the inner peri-urban has average land prices of 725
rupees per sq. yard along the main road while it is Rs. 367 in the middle peri-urban and
Rs.250 per sq. yard in the outer peri-urban in the corresponding location. It has increased
to 9000 rupees per sq. yard in the inner peri-urban, 5000 rupees in the middle and 1500
rupees in the outer peri-urban in 1999. The highest land prices along the main road is
recorded in Libaspur which is located at the G. T road and very near to Delhi Metropolis
and in the midst of highly industrialised villages. Analysis of the data shows that inner
peri-urban has experienced highest rise in land prices along the main road in the absolute
terms during 1985-99. However, the percentage increase in the land value along the main
road is slightly higher in the middle peri-urban. The outer peri-urban shows lowest
increase in both absolute land value and in percentage form.
Away from Lal Dora and the main road: The land which is used for unauthorised
construction away from Lal Dora and main road is considered under this class. In 1985,
the average land prices in the inner peri-urban under this land category is 23 8 rupees per
sq. yard while it is 150 rupees in the middle and 100 rupees in the outer peri-urban. In
1999, it is increased to the average land price of 1500 rupees per sq. yard in the inner
169
peri-urban, 667 rupees in the middle and 400 rupees in the outer peri-urban. The highest
land price in 1999 is recorded in Kapas Hera in the inner peri-urban. Analysis shows that
inner peri-urban has experienced highest rise in land prices in this land category both in
absolute land value as well as in percentage form during 1985-99 while the outer peri
urban experienced the lowest
Discussion reveals that inner peri- has the highest land prices in all categories of land and
has also experienced highest rise in land value during 1985-99. This is on account of
higher level of urbanisation process in the inner peri-urban which has increased the
demand for limited land resources that leads to competition among the buyers and results
in high rise in prices.
5.3.4 Spatial variation in urbanisation process and agricultural land prices
After discussing the land prices in different sample villages and zones of the peri-urban,
it is essential to establish the relationship between the urbanisation process and the rise in
land prices. In this regard, population growth and agricultural land prices in the sample
areas during 1981-91 have been analysed at zone level (Table 4.29).
The price rise has positive relation with the urbanisation process which is evident from
the fact that high rise in population in the inner peri-urban has led to high rise in land
prices. As one moves towards middle and outer peri-urban, the population growth is
comparatively slowed down and in the same way the rise in land prices.
Table 5.29
NCT Delhi: Peri-urban
Relation between the rise in informal agricultural land prices and growth of
population-1981-91.
Zones % rise in formal agricultural land prices Growth in population*
Inner peri-urban 329.33 176.91
Middle peri-urban 96.15 76.22
Outer peri-urban 50 47.455
* Source: District Census Handbook ofDclhi, Village and Town Directory Directory, 1981, and 1991
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5.4 Summary
Process of urbanisation in peri-urban though started before 20th century could not make
much progress till 1911 when capital of British India was moved from Calcutta to Delhi.
Number ofvillages were acquired for the capital area during 1911-31 which started the
era of city interaction with the rural areas. Its speed was accelerated at the time of
independence when Delhi experienced heavy influx of population after the partition.
Though Govt made all efforts to rehabilitate the migrants, it could not succeed and the
speculators in the peripheries of the city started the parallel work of colonisation. To
control the unauthorised construction, Delhi development authority was formed and the
master plan was launched which acquired large areas for planned development.
Development authority has also not been fully successful in providing shelter to the
rapidly growing population. As a result, outgrowth in the peripheries of the city has been
a regular phenomenon, which is informal in nature and is mainly controlled by
speculators. In this process, number of unauthorised colonies developed in the peripheries
have been approved from time to time and presently more than 1000 colonies located in
the peri-urban are still waiting for govt approval.
Urbanisation process in the peri-urban is not a simple phenomenon and major
constituents involved in the process are migration; commercial and industrial
establishments; the land conversion and the prices.
Migration in the peri-urban of National Capital Territory of Delhi belongs to different
states and the maximum comes from Uttar Pradesh followed by Bihar.
Highest percent of male migrants have migrated on account of economic reasons while
the females have been migrated on account of family reasons. Large percent of owner
migrants have not come directly in the peri-urban. They had their first camp in Delhi
urban area or other peri-urban areas and after staying there for a longer period as tenants
have purchased plot or house in this area. The reason for purchasing the plot in the
unauthorised area is the cheap prices as compared to plots in the developed area. Large
percent of tenants have come directly in this area.
171
Persons owning commercial and industrial establishments in the peri-urban belong to
different states. Highest percent of owners belong to Delhi urban area. This is on account
of expansion of their business in the main city requiring more space or shifting of
polluting units to these areas where the pressure of the pollution controlling authorities is
low. Highest percent of owners live in the city area as peri-urban has not developed infra
structure to their living standards. Highest percent of workers in these establishments are
migrants out of which highest percent belong to Uttar pradesh followed by Bihar State.
Low percent of local workers in these establishments are on account of low wages. 2/3rd
workers live as tenants whil(!l/3rd live in the premises of the establishments in very poor
living conditions. Highest percent of establishments of urban nature belongs to factories
followed by godowns and shops. Large percent of establishments are engaged in
manufacturing followed by processing, storing and selling. Maximum establishments are
in the size group of 201-500 sq. yards. Percent of establishments having largest size
increases towards outer peri-urban. Cheap land, low rent, nearness to highway and Delhi
market are the chief reasons for the establishments of these activities in the peri-urban.
The main market for procurement of raw material and selling of finished goods is Delhi
urban area.
Land market system in the peri-urban is both formal and informal in nature. The land
prices are generally higher in informal system than the formal. The speculators who
control the informal land market are more active in the inner peri-urban where the
urbanisation process is in advance stage. Here, they purchase large part of the agricultural
land from the farmers for speculation. More than 90 percent land in the unregulated
residential sector is sold through the speculators in the inner peri-urban. Away from the
inner peri-urban, the significance of the speculators is reduced as the demand for
residential land is decreased in the distant area. The percent rise in land prices is highest
along the main roads. In the urbanisation process, the absolute increase in land prices
which are more in the inner peri-urban shift many establishments occupying large space
from the inner to the middle and outer peri-urban as the owners cannot afford longer to
hire that much space in the inner peri-urban. Similarly, the common man who is in need
of residential land shifts his focus from the inner peri-ur~an to the middle and outer peri
urban. Thus, rise in land prices advances the urbanisation process in further areas.
172
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