chapter 5 urbanisation process 5.1 concept of ... -...

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.

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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

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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

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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

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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.

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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

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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.

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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


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.

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Table 5.7


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

170

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

References:-

1 Rose, A.J. (1967). Patterns of Cities, Nelson, London, Melbourne, p.16. 2 Smailes, A.E. (1953). Geography ofTowns, Hutchinson University Press, London,

p.32. 3 Bose, A. (1980). India Urbanisation 1901-2000, Studies in Demography No. 10,

Tata McGraw-Hill Publishing Co., New Delhi.p.3. 4 Car Stephen (1876). The Archaeology and Monumental Remains of Delhi,

Publishing House, New Delhi, P.iii

5 Gazetteer of rural Delhi (1987). Delhi Administration, p.284. 6 Jain, A.K. (1996) Indian Megacity and Economic Reforms, Management

Publishing Co., New Delhi, p.69. 7 Diwak:ar A. (1991). Urban Expansion and Rural Land Acquisition in the Fringe

Villages: A Case Study of Union Territory of Delhi- Unpublished Ph.D. Thesis, p.92.

8 Jain, A.K. (1996) op. cit., p.69. 9 Gupta, N. (1981). Delhi Between Two Empires, Oxford Press Delhi. 10 Rebeiro, E.F.N. (1987). Urban Land Policy of the Development for Delhi, Paper

Presented at NIUA/AIT, Regional Seminar on Managing Urban Land Development, National Institute Of urban Affairs, New Delhi. ·

11 Yadav, C. S. (1979). Land In Big Cities, A Case Study of Delhi, Inter India Publication Delhi.

12 Gazetteer ofrural Delhi (1987). op. cit., p.149. 13 Nangia, S. & Thorat, S. (2000). Slum In A Metropolis-The Living Environment,

Shipra Publications, Delhi, p.42 14 Gazetteer of rural Delhi (1987). op. cit., p.285. 15 Danik Jagran Sep lOth 1998.

16 Mehta, D. & Mehta, M (1991). land for shelter Delivery serviced land in Metropolitan India, vol. 2, school of Planning, Centre for Environmental Planning And Technology, Ahmedabad.

17 Nangia, S. & Thorat, S. (2000). op. cit, p.14. 18 Danik Jagran Sep 1oth 1998.

19 Master Plan for Delhi(MPD 2001 ), Delhi Development Development, August 1990, p.120

20 Jain, A.K. (1996). op, cit., pp.163-164. 21 Donald, J Bogue and Zachariah, K. C. (1962). Urbanisation and Migration in

India,. In Roy Turner (ed.) India Urban Future, Berkley, University of California Press, p.28

22 Pathak, C.R (1986) Industrialisation Development and Urbanisation process. In Mohammed Shafi and Mahdi Raja ( ed.) Spectrum of Modem Geography, Essays in the memory of Prof. Mohammad Anas, Concept publishing co. New Delhi.pp.45-163.

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