VALUATION OF BIODIVERSITY PARKLAND

Saturday Brain Storming Thought (261) 08/02/2025

VALUATION OF BIODIVERSITY PARKLAND

A Bio Diversity Park Reservation is a protected area of land that is set aside to preserve the local biodiversity and ecosystem

Purpose of Bio-Diversity Reservation

To prevent local extinction and maintain the biological uniqueness of the area

Valuing BDP Land

Valuing BDP land is complex and often done by considering the ecological services it provides, such as carbon sequestration, air and water purification, flood control and recreational value, rather than solely based on the market value

Key factors influencing BDP Land Valuation

1) Ecological features

The diversity of plant and animal species, their ecological importance and the presence of rare or endangered species significantly impact the value

2) Location

Proximity to urban areas, accessibility and surrounding land use patterns affect the recreational value and potential for public engagement

3) Carbon sequestration potential

The capacity of the park to absorb and store carbon dioxide is a crucial environmental service

4) Water quality regulation

The ability of the park to filler and improve water quality

5) Flood control benefits

The role of the park in mitigating flood risks by absorbing rainwater

Gazette of BDP Reservation with PMC

On Wednesday 05/08/2015, PMC sanctioned BDP Reservation

To prevent the sale of BDP Reservation land in PMC

On 06/09/2018, PMC Commissioner Saurabh Rao has promised to load BDP Reservation onto the 7/12 extract of land owners, the prevent the sale of BDP reserved land

Recently, Chief Minister Devendra Fadnavis took a decision not to allow any construction in the BDP Reservation zone and give 8% TDR ( Transfer of Development Rights) as compensation

A total of 978 Hectares of land on the hills around Pune the BDP Zone

Out of 978 Hectares, 124 Hectares is government owned and the remaining 854 Hectares is owned by private parties

Valuation methods used for BDP

1) Benefit Transfer method

This method uses data from similar ecosystems in other locations to estimate the value of ecosystem services provided by the park

2) Travel Cost method

Analyzing the costs people incur to visit the park to estimate it’s recreational value

3) Contingent Valuation method

Conducting surveys to determine what people are willing to pay to preserve the parks ecological services

4) Shadow Pricing

Estimating the cost of replacing the ecosystem services provided by the park with artificial alternatives

Permissible land uses in BDP reserved Land in Maharashtra

1) Historical Museum

Can be built on government owned land with a maximum floor space area of 4% of the total plot

2) Bio Diversity information and Research Centre

Can be built on government owned land, with a maximum floor space area of 4% of the total plot

3) Public Streets

Can be built with a width up to 9 meters

Restrictions on land use in BDP reserved land in Maharashtra

1) No agriculture, nursery, public park or any public utility is allowed

2) Only development permitted before 21/03/2005 is considered as legal

Advantages of Bio Diversity

1) Flood security – It provides a variety of crops and livestock food and ensures sustainability of souls

2) Human health – It provides medicines and other materials used in healthcare, it also helps protect humans from disease

3) Climate change resistance – It helps ecosystems adapt to environmental stressors and resist climate change

4) Economic development – It supports agriculture, forestry and fisheries, which contribute to economic growth

5) Ecosystem health – It helps ecosystems provide clean air and water and maintain a balance of nutrients

6) Protection from storms and flooding – It helps protect humans and animals from storms and flooding

7) Pollination – It provides species that pollinate crops

8) Pest control – It provides species that control pests

9) Wastewater treatment – It helps ecosystems treat wastewater

Value of Biodiversity

1) Aesthetic value

a) It makes the world most beautiful

b) It can contribute to the quality of life, health and vitality

c) It can inspire harmony and peace

2) Ethical value

It relates to the importance of biodiversity conservation and protecting all life forms

3) Ecological value

a) Healthy ecosystems provide clean air and water, food and materials

b) They can better withstand and recover from challenges like storms and floods

4) Economic value

It provides products that can be harvested and sold commercially, such as food, fuel, pharmaceuticals and fiber

5) Ecosystem services

a) It provides ecosystem services that help maintain human needs and activities

b) These include fertile soil, fresh groundwater and oxygen

6) Consumptive use value

This is the value of products that are consumed directly, without passing through a market

7) Productive use value

This is the value of products that are harvested and marketed commercially

Bio Diversity Park Reserved land value importance

1) The value of land reserved for Biodiversity Park is generally considered significantly lower than the Market Value of regular developed land due to its restricted development potential

2) But can still hold value depending on factors like location, size and the compensation offered to landowners in the form of TDR, when the land is acquired for the Park

3) In the case of Pune, India, recent reports indicate landowners receive around 8% TDR for land reserved for Biodiversity Park

Reasoning for less value of BDP reserved land

1) Low development potential

Since construction and development activities are heavily restricted within a Biodiversity Park, the land value for building purposes is significantly reduced

2) Environmental Value

While the Market Value might be lower, the ecological and environmental benefits of a Biodiversity Park are considered high, contributing to overall quality of life in a region

3) Compensation Mechanisms

To incentivize landowners to give up their land for a Biodiversity Park, governments often provide compensation in the form of TDR, allowing them to develop land elsewhere at a higher density

4) Location Matters

The value of Biodiversity Park Land can vary depending on its location, with land closer to urban areas potentially holding a higher value even with development restrictions

Area under BDP

1) BDP proposed only on hills

2) Hills defined as Slope/Gradient of 1:5 ie 20% and area encompassed by it

Biodiversity Park reservation land valuation as per IGR

1) If BDP reserved land is included in Residential zone, you can consider valuation rates

a) 20% of residential plot rate

b) Rate of Hill top Hill Slope land rate

Whichever is higher

2) If BDP reserved land comes under Agriculture zone, No development zone

20% of residential plot rate

Rate of Hill top Hill Slope land rates

Whichever is higher