The Hindu : Andhra Pradesh / Hyderabad News : Housing board's mega plan for city

Online edition of India's National Newspaper
Monday, Dec 20, 2004

Andhra Pradesh

Andhra Pradesh - Hyderabad

Housing board's mega plan for city

By V. Geetanath

HYDERABAD, DEC. 19. The Andhra Pradesh Housing Board (APHB) has embarked upon plans to oversee the construction of 7,000 more modern housing units at an estimated cost of Rs. 2,000 crores, even while its Singapore Township nears completion at Pocharam and Malaysian Township under way at Kukatpally.

The Government has given tentative clearance for the townships, which will be in the form of independent houses. They will come up at different sites around the capital and another at Khammam.

The housing units are to be taken up as joint ventures with private developers in a novel public-private partnership, distinctly different from its earlier ventures.

In the twin cities, the proposed townships are to come up at Gachibowli (four sites), Kukatpally (three sites) and Pocharam.

Development fee

The APHB has already received Rs. 281 crores towards development fee from selected private partiers. But, it will continue to hold ownership over the units with private developers to take up construction and marketing.

Registration of units will be between the buyer and the APHB, and the latter will also get 1.5 per cent to 2 per cent of revenue on gross sales. It is also stipulated that private developers should allocate five per cent of the land for construction of lower income group housing (LIGH).

"Unlike our recent foreign ventures, we have no equity participation here. There is no need to invest huge funds. Litigations can be avoided and the risk is shared. Moreover, people are assured of quality construction, clear title deed, sticking to municipal bylaws and on time," explains a senior APHB official.

Tie-up with developers

The APHB has tied up with private developers after having built an average of 2,500 housing units per year in the last four decades at a cost of Rs. 500 crores. The Government has asked it to take up construction of at least 25,000 housing units each year. The APHB has issued notifications for joint ventures early this year and received 83 proposals from 28 private parties. Fourteen of them have been short-listed by a Government high-power committee. The credit rating agency, Crisil, evaluated the bids detailing the conceptual plans and the panel has chosen seven parties -- Gachibowli: DLF Universal Ltd., Ramky Infrastructure Ltd., Embasy Unity Consortium and Ambience Properties; Kukatpally: Embasy Unity Consortium, Madhucon-Binapuri Consortium and at Pocharam for K. Raheja Corp. For Khammam Township, IVRCL Infrastructure and Projects Ltd. has been finalised.

Agreements are to be signed in a couple of months and it will take close to 30 months from agreement date for completing the constructions and delivery, estimate APHB officials.

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