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Big role now for private sector in public housing projects

Gaurav Vivek Bhatnagar

Delhi Development Authority throws open the door to builders in the Capital


  • A major shift in focus under new policy
  • Mega boost for mega projects
  • Fresh terms and conditions for builders

    NEW DELHI: Paving the way for "high-class" residential housing development as seen in neighbouring Gurgaon, Noida, Greater Noida and even Ghaziabad of late, the Delhi Development Authority on Tuesday approved in principle the participation of private sector in mega housing projects across the Capital. The decision was taken at a meeting chaired by the Lieutenant-Governor of Delhi, B. L. Joshi, at Raj Nivas.

    Announcing the decision, DDA Vice-Chairman Madhukar Gupta said as per the Foreign Direct Investment policy of the Centre, the private sector would be involved in construction involving a minimum area of 10 hectares or 50,000 square metres of built-up area or their multiples. With this, the focus would now shift from plotted development to built-up development.

    Under the Urban Extension Development Plan, he said, 50 per cent of the total land is to be provided city-level infrastructure such as Master Plan roads, greens, district parks and district centres. While there will be a "facility corridor'' on either side of the Master Plan roads, the gross residential land -- on which the private sector will take up work -- will be located behind these corridors.

    Mr. Gupta said private builders would be asked to construct 35 per cent of the total units in sizes of two rooms or less -- measuring between 25 and 40 square metres -- and these would be allotted by DDA. The builders would also have to pay external development charges since peripheral infrastructure would be the responsibility of the various State authorities such as DDA, Municipal Corporation of Delhi, Delhi Jal Board and Public Works Department. Moreover, they would also be asked for conversion charges as land use would be changed from agricultural to residential.

    To avoid delays, he said, all the construction work would have to be completed in three years by the private developers from the date of the land being handed over to them. And the developers would also provide the necessary public facilities such as community halls, schools, shopping centres and garbage disposal areas within the premises. They would also maintain the services, like DDA does, till the area is handed over to the local authority. In case of violation of the norms, Mr. Gupta said, there would be penalty clauses to deal with the developers.

    In the case of land developed by DDA, he added, a separate module has been devised. Here the developers will be asked to construct 35 per cent of the units for the economically weaker sections of society and these will be given to DDA by the developers free of cost. "This would also bring the informal service providers close to residential areas where they can get gainful employment. Also, the plan would provide them high quality shelter.''

    The third module will comprise cooperative group housing societies. They will now be required to construct as many 25 square metre tenements for the economically weaker sections as the number of units they intend to construct for their members. "So while on the one hand this would add to the housing pool available with DDA, by increasing the cost of land in the hands of societies, it would also reduce the wide gap between pre-determined rates and the market rates of plots -- thereby reducing corrupt practices."

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