'Cantts' Can Do It: Monetising Surplus Defence Lands To Make Space In Indian Cities

India is at an inflection point in its urban development journey. As the country aspires to become a $5 trillion economy, financing large-scale infrastructure remains a challenge.

One overlooked yet powerful solution lies in the monetisation of surplus Cantonment Lands under Defence — an untapped resource that could unlock economic growth, address housing shortages, and fund critical urban projects.

The question is: Will the government have the political will to act decisively?

The Land Paradox: Scarcity Amidst Abundance

Land is among the most valuable assets in India’s rapidly growing urban centres. While governments struggle to acquire land for public projects, vast tracts of prime land remain locked under the Ministry of Defence (MoD).

India’s 62 Defence Cantonments, which come under the Directorate General Defence Estates, hold 17.54 lakh acres — much of it in the heart of major cities. As per CAG reports, around 81,000 acres are underutilised, including 52,000 acres of vacant land.

At a time when cities are gasping for space, why does this land remain idle? The reluctance of defence authorities to part with land — despite evidence of inefficiency — has created a paradox where the government sits on gold mines while struggling for urban expansion.

This is an economic windfall India is ignoring. The financial potential of monetising surplus defence lands is enormous. Conservative estimates place the value of 80,000 acres at a staggering ₹8 lakh crore — an amount that could fund India’s urban transformation for years.

Also, the monetisation of surplus defence lands can be a game-changer in achieving the targets set under Pradhan Mantri Awas Yojana (PMAY), the flagship affordable housing scheme launched by Prime Minister Narendra Modi. With a vision of "Housing for All," PMAY aims to construct three crore urban and rural housing units. However, a major hurdle has been the non-availability of affordable land in prime urban areas.

Unlocking just 16,490 acres of surplus defence land in cities like Chennai, Pune, Bangalore, and Lucknow could provide space for over 29 lakh affordable housing units, addressing nearly 15% of India's urban housing deficit.

Strategic redevelopment of cantonments into mixed-use residential zones would not only lower land acquisition costs but also integrate essential infrastructure like roads, metro links, and commercial centres — making housing projects more viable.

By leveraging surplus defence lands, the government can bridge the affordability gap, accelerate PMAY implementation, and bring India closer to its goal of universal housing by 2030.

Transformational Potential in Key Cantonments

Delhi Cantonment occupies 43 sq. km. This land could transform into a world-class urban hub with modern housing, commercial zones, sports complexes, and transport corridors.

In the South, Secunderabad Cantonment occupies 40.2 sq. km, much of it leased or encroached, offering a massive opportunity for systematic redevelopment.

Ahmedabad’s cantonment occupies approximately 7% of the city’s area. This land could be repurposed to alleviate urban congestion and foster development.

Kanpur Cantonment is the largest in India, spanning approximately 12,576 acres. It presents significant opportunities for redevelopment into residential and commercial zones, potentially alleviating urban congestion and boosting the local economy.

Barrackpore Cantonment, established in 1765, stands as the oldest cantonment, covering an area of 6,702 acres. It offers a rich historical context for potential cultural and commercial revitalisation. Its proximity to Kolkata enhances its viability for urban integration and heritage-based tourism initiatives.

Other notable examples include Meerut Cantonment (35 sq. km), a prime location near NCR that can become a hub for logistics and affordable housing, and Ambala Cantonment (32 sq. km), which is well-connected to the Delhi-Chandigarh Expressway and suitable for IT and commercial use.

Global Success Stories India Can Learn From

India is not alone in grappling with defence land utilisation. The U.S., Canada, Australia, and the Philippines have successfully monetised surplus defence lands, converting them into economic engines.

The United States created the Base Realignment and Closure (BRAC) program, repurposing military bases into commercial and residential developments.

The Philippines’ Bases Conversion and Development Authority (BCDA) transformed former military sites into thriving business districts, boosting employment and urban expansion.

Canada and Australia set up centralised land agencies to ensure transparent and competitive land monetisation.

The key takeaway? A structured, transparent, and market-driven approach can turn defence lands into powerful economic assets.

What Needs to Be Done: A Pragmatic Blueprint

If India is serious about unlocking the potential of surplus defence land, a clear roadmap is essential. A high-powered body under the Prime Minister’s Office (PMO) should oversee land appraisal, classification, and monetisation.

Categorisation of land for optimal use — such as Surplus Land or Unused Land — is necessary. Monetisation via sale or lease for housing, commercial, or public infrastructure projects can be considered as viable options.

To ensure transparency and accountability, the government should publish bi-annual city-level reports on land availability, revenue potential, and relocation logistics. Independent audits should be conducted to prevent corruption and mismanagement.

Moreover, a market-oriented approach can be adopted where the government announces open competitive bidding for land leasing and sales to maximise revenue.

The Political Challenge: Can India Seize the Moment?

Various expert committees have advocated for the monetisation of underutilised government land to finance infrastructure projects. For instance, the Vijay Kelkar Committee on Fiscal Consolidation (2012) recommended leveraging unutilised and under-utilised land for urban development.

Despite the immense potential, bureaucratic inertia and institutional resistance pose significant hurdles. Defence authorities have traditionally resisted land reallocation, citing security concerns. However, in most cases, these concerns are overstated. Thoughtful planning and strategic relocation can balance national security interests with urban needs.

The government has already taken baby steps. The Defence Land Reforms Committee was formed to review land usage. However, half-measures won’t suffice. India needs a bold, decisive push — one that prioritises economic pragmatism over bureaucratic inertia.

Land monetisation isn’t just about revenue; it’s about India’s future. With ₹8 lakh crore in potential wealth, the opportunity to transform urban infrastructure, housing, and public services is unprecedented.

The question is: Will India act, or let another decade slip by while our cities continue to struggle for space? The answer will define India’s urban future for generations to come.

NOTE: The distribution of 17.31 lakh acres of Defence land in India, as depicted in the accompanying chart, highlights the land holdings under different defence-related entities.

The Scales of Accommodation applicable to the Defence Services did not recognize golf as an authorised activity. Nevertheless, the Defence Establishment currently operates 97 golf courses, cumulatively occupying approximately 8,076 acres of predominantly urban land.

Under the Cantonment Land Administration Rules (CLAR), 1937, A-1 defence land is reserved strictly for military purposes, and the establishment of golf courses thereon does not constitute a permitted or sanctioned use.

To avoid the charge of having surplus “recreational” land, the Army re-labeled its golf courses as “Army Environmental Parks and Training Areas.”

The 'Performance Audit of Defence Estates Management' Report by the Comptroller and Auditor General (CAG) reveals that an examination of the records maintained by the Directorate General of Defence Estates (DGDE) indicated that approximately 26,000 acres of land, comprising Abandoned Airfields (AAFs) and Camping Grounds (CGs) across five Commands, has remained unutilised and surplus to the operational requirements of the Armed Forces since 1980.

Despite the prolonged period of non-utilisation, this land has neither been formally disposed of nor repurposed for any alternative use. Furthermore, 7,500 acres of this land have been subject to encroachment. The extent of encroachment across the Commands ranges from 16.10% to 38.96% of the total area in question.