This will lower property prices in the country considerably. Urban Affairs Minister Ram Jethmalani told The Indian Express that he expects the ordinance to be issued next week.

Apart from lowering prices dramatically, the fact that no ULCRA clearance will be required will also speed up the development of real estate projects in the 64 cities which are covered by ULCRA.

Currently, the ratio of land used for housing to the total usable land, for instance, is around 34 for cities like Delhi, as opposed to close to double this in most developed countries -- thus, property prices will fall dramatically.

The ULCRArepeal will also hasten industrial restructuring since several textile mills are currently sitting on large tracts of land -- being able to sell these easily will now give them the funds required for restructuring and giving severance packages to workers.

In Ahmedabad alone, for example, around 15 textile mills are sitting on 85 hectares of land -- the mills have over 28,000 workers who have not even been paid their dues of Rs 9 crore. The mills also have outstanding liabilities of Rs 155 crore.

Once ULCRA is repealed, each State will be free to enact its own land laws. The nature of these laws will determine how much land will eventually be freed. Currently, around a fourth of the total land under ULCRA is located each in Maharashtra and Uttar Pradesh; around 32,000 hectares in Gujarat come under this; 28,000 in Rajasthan, 16,000 in Madhya Pradesh, and 13,000 in Andhra Pradesh. Around 345 hectares of land in Delhi is governed by ULCRA.

Once ULCRA is repealed, each State may come up with provisions thatwill ensure that the poor and needy benefit. The new laws, once enacted, may specify that a small part of the value of the land freed is to be deposited in a shelter fund which will be used to construct housing for the poor and needy.