The Hindu : New Delhi News : DDA for private sector role in housing projects

Online edition of India's National Newspaper
Tuesday, May 10, 2005

New Delhi

New Delhi

DDA for private sector role in housing projects

Gaurav Vivek Bhatnagar

Agency has failed to fulfil its role, admits DDA Vice-chairman `Private developers will supplement construction by DDA'

NEW DELHI: Accepting the reality that it has not been able to live up to the expectations and provide sufficient housing, the DDA has now proposed that the private sector be allowed in large-scale housing projects to make up for the shortage in the sector and meet the growing demand for residential units. This would be in addition to the housing activity to be undertaken through cooperative group housing societies. "Private sector will supplement construction by the DDA as it has not been able to fulfil the role satisfactorily,'' said the DDA Vice-Chairman, Madhukar Gupta, following the Authority meeting where the proposal was discussed on May 6.

It has been proposed that the involvement of the private sector in housing could be either through a joint venture between the DDA and the developer concerned through the formation of a special purpose vehicle as has been done in Andhra Pradesh or it could be on the basis of outright disposal on tender or auction basis.

In either case, the developer would need to be identified through a two-part bid process involving short-listing of developers on the basis of financial capacity, technical capability and experience followed by financial bids. Alternately, the pre-selection could be carried out as a general process and financial bids invited from short-listed developers for specific sites which may be identified from time to time.

While preparing the proposals in this regard, the DDA has also kept in view the policy regarding Foreign Direct Investment in townships, housing, built-up infrastructure and construction development projects. As such, in case of development of services housing plots, the minimum land area will be 10 hectares; in construction-development projects it will be 50,000 square metres; and in combination project one of the above two conditions would suffice.

In all these alternatives the private developer shall provide a minimum of 35 per cent of development units for LIG/EWS categories -- 25 to 40 square metres or two-room sets -- which shall be handed over to the DDA either free of cost or at a pre-determined price. The developer shall also provide internal roads, services, infrastructure, parks, parking facilities as per planning norms and approved layout plan; and shall make the prescribed contribution towards planning, permission fee, scrutiny fee, conversion charges, betterment charges and external development charges wherever applicable.

An important condition would be that at least 50 per cent of the project must be developed within a period of five years from the date of obtaining land and the developer shall not be permitted to sell or make agreement to sell the undeveloped or un-built properties where roads, water supply, street lighting, drainage, sewerage and other conveniences as applicable under prescribed regulations have not been made available.

The project, the proposal said, shall conform to the norms and standards, including land use requirements and provision of community amenities and common facilities as laid down in the Master Plan, building bye-laws, rules and other regulations.

The developer shall also be responsible for obtaining all necessary approvals including those of the building/layout plans, developing internal and peripheral areas and other infrastructure facilities, payment of development, external development and other charges and complying with all other requirements as prescribed.

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