MAINS Current Affairs includes World Inequality Lab Report on Land Inequality in India & Rooftop Solar: Government Planning Incentive Scheme for States

Governance

1. World Inequality Lab Report on Land Inequality in India

Context

A recent working paper released by the World Inequality Lab has highlighted the serious extent of land inequality in rural India.

The study draws on data from the Socio-Economic Caste Census (SECC) and covers nearly 650 million people across 2.7 lakh villages, making it one of the most extensive analyses of rural land distribution.

Key Findings of the Study

High Concentration of Land Ownership

The report reveals a sharp concentration of land in the hands of a small proportion of households.

• Top 10% of rural households own nearly 44% of total land
• Top 5% own around 32%
• Top 1% alone control 18%

This reflects a highly skewed pattern of ownership.

Widespread Landlessness

• Nearly 46% of rural households are landless.
• This means that almost half of rural families do not possess land as a productive economic asset.
• Such landlessness directly affects livelihood security and income generation.

Village-level Concentration

• At the village level, concentration remains significant.
• On average, the largest landowner controls about 12.4% of village land.
• In nearly 8% of villages, a single individual owns more than half of the total land, showing continued landlord dominance.

State-wise Variation

• The study points out substantial regional variation.
• States like Bihar and Punjab show high land concentration.
• Kerala records the highest land inequality in terms of the Gini coefficient.

Landlessness is especially high in:

• Punjab – 73%
• Bihar – 59%
• Madhya Pradesh – 51%

Relatively lower levels are seen in:

• Rajasthan – 34%
• Uttar Pradesh – 39%

Determinants of Land Inequality in India

Historical Factors

• Regions historically governed under the zamindari system continue to show higher land concentration.

These areas were marked by:

• Dominance of large landlords
• Concentration of ownership rights
• Limited access for cultivators

In contrast, former princely states generally show relatively lower inequality.

Agricultural Factors

• Areas with highly fertile and agriculturally productive land tend to attract concentration by large landowners.
• Better land quality often encourages accumulation and consolidation.

Fragmentation Due to Inheritance

• Repeated subdivision of landholdings through inheritance laws has reduced the economic viability of small farms.
• This often forces small farmers into distress sales, enabling larger landowners to consolidate holdings.

Weak Reform Implementation

• Poor implementation of land reforms has allowed loopholes such as:
• benami holdings
• paper fragmentation
• proxy ownership

This has enabled dominant landholders to retain effective control.

Legal Framework for Land Reforms in India

Abolition of Intermediaries

• The Zamindari Abolition Acts were introduced to eliminate middlemen and transfer ownership rights to actual cultivators.

Tenancy Reforms

• These reforms aimed to:
• regulate rents
• protect tenants from eviction
• provide ownership rights

A notable example is Operation Barga in West Bengal.

Land Ceiling Laws

• The Land Ceiling Acts fixed upper limits on the amount of land an individual or family could own.
• Surplus land was intended to be redistributed among landless households.

Consolidation of Holdings

• States like Punjab and Haryana promoted consolidation to reduce fragmentation and improve agricultural efficiency.

Digitisation of Land Records

• The Digital India Land Records Modernization Programme (DILRMP) seeks to improve transparency and reduce disputes through digitised records.

Forest Rights Act, 2006

• The Forest Rights Act, 2006 recognises land rights of forest-dwelling Scheduled Tribes and traditional forest communities.
• This aims to correct historical injustices.

Challenges in Land Reforms

Elite Resistance

• Land reforms often face strong resistance from powerful landed elites, especially in states with entrenched landlord structures.

Poor Land Records

• Outdated and unclear records lead to:
• disputes
• litigation
• exclusion of genuine beneficiaries

Incomplete Tenancy Reforms

• Many tenant farmers still lack formal recognition and legal protection.
• This limits security of tenure.

Social Barriers

• Caste-based exclusion and social discrimination continue to restrict land access for marginalised communities.

Constitutional Constraint

• Land is a State subject, which means implementation largely depends on state governments.
• This leads to uneven progress across states.

Way Forward

Improve Access for Marginalised Groups

• Special measures should focus on:
• SC/ST communities
• women farmers
• landless labourers

Joint land titles and targeted redistribution can help.

Promote Leasing and Contract Farming

• As recommended by NITI Aayog, formal land leasing and contract farming frameworks can improve efficiency without altering ownership structures.

Support Small and Marginal Farmers

• Institutional support must be strengthened through:
• credit access
• irrigation facilities
• technology adoption
• Farmer Producer Organisations (FPOs)

This can reduce distress land sales.

Conclusion

Land inequality in India remains deeply rooted in historical, institutional, and social structures.

The challenge lies not only in unequal ownership but also in the widespread prevalence of landlessness.

Comprehensive reforms and targeted support for landless and small farmers are essential for equitable rural development and inclusive growth.

Energy

2. Rooftop Solar: Government Planning Incentive Scheme for States

Context: To achieve the target of 1 crore households under PM Surya Ghar by 2027, the Ministry of New and Renewable Energy (MNRE) is encouraging states to adopt a Utility Led Aggregation (ULA) model.

This step is aimed at accelerating rooftop solar adoption in the residential sector.

About the Proposed Incentive Scheme

• The MNRE is considering a new incentive framework to make the PM Surya Ghar: Muft Bijli Yojana more attractive for state governments.
• Under this model, state electricity distribution companies (DISCOMs) will bear the installation cost of rooftop solar systems for households that:
• cannot afford the upfront cost
• lack suitable rooftop infrastructure
• face technical barriers

This utility-led approach is intended to expand coverage among economically weaker households.

Progress Under ULA Model

• The ministry has already approved around 58 lakh ULA-based installations across multiple states and Union Territories.
• These include:
  • Andhra Pradesh
  • Odisha
  • Kerala
  • Telangana
  • Bihar
  • Tripura
  • Ladakh
  • Jammu and Kashmir
  • Andaman and Nicobar Islands
  • Daman and Diu
  • Dadra and Nagar Haveli

This reflects a growing push toward decentralised solarisation.

India’s Energy Share

Installed Power Capacity

• As of 2025, India’s total installed electricity capacity has crossed 500 GW, reaching approximately 6 GW.

Non-fossil Capacity

• The total non-fossil installed capacity stands at nearly 74 GW, which is about 51.5% of total installed capacity.
• This marks significant progress in the clean energy transition.

Solar Capacity

• Installed solar power capacity has reached around 85 GW.
• India currently ranks:
  • 3rd globally in solar capacity
  • 4th in wind power capacity
  • 4th in total renewable energy capacity

Fossil Fuel Share

• Fossil-fuel-based capacity remains around 80 GW, accounting for nearly 49% of installed capacity.
• Coal alone contributes close to 74% of actual electricity generation, showing continued dependence on thermal power.

PM Surya Ghar: Muft Bijli Yojana

• The PM Surya Ghar: Muft Bijli Yojana was launched in 2024.
• Its objective is to provide affordable or free electricity to households through rooftop solar installations.

Aim

• The scheme aims to achieve 1 crore rooftop solar household installations in the residential sector by FY 2026–27.

Subsidy Support

• The scheme provides a subsidy of up to 40% for eligible households.
• This reduces the initial financial burden and encourages wider adoption.

Model Solar Village Component

• A dedicated allocation of ₹800 crore has been made for the Model Solar Village initiative.
• Each selected village will receive ₹1 crore.

Eligibility

• To qualify, the village must be a revenue village with a population of:
• more than 5,000
• or 2,000 in special category states

This initiative promotes village-level energy self-reliance.

Key Benefits of the Scheme

Reduced Electricity Costs

• Households benefit from significantly lower electricity bills through rooftop solar installations.
• In many cases, power can become nearly free.

Fiscal Savings

• The scheme is expected to help the government save nearly ₹75,000 crore annually in electricity-related

Environmental Benefits

• It is projected to reduce carbon emissions by around 720 million tonnes.
• This supports India’s climate commitments.

Capacity Addition

• The scheme aims to add nearly 30 GW of solar capacity in the residential sector.

Additional Household Income

• Households can earn additional income by selling surplus electricity back to DISCOMs through net metering arrangements.

Employment Generation

• The initiative is expected to generate nearly 17 lakh direct jobs in sectors such as:
• manufacturing
• installation
• maintenance
• distribution

Way Forward

• The PM Surya Ghar: Muft Bijli Yojana is emerging as a major pillar of India’s clean energy strategy.
• Beyond lowering power costs, it is contributing to:
• energy self-reliance
• green growth
• employment generation
• emission reduction
• With stronger state participation through the ULA model, the scheme is well-positioned to achieve its target of 1 crore solar-powered homes.

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