The Hindu : Karnataka / Bangalore News : Greater role for developers

Online edition of India's National Newspaper
Thursday, Dec 28, 2006
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Karnataka

Karnataka - Bangalore

Greater role for developers

Special Correspondent

Bangalore: The new Comprehensive Development Plan, awaiting formal announcement by the Government, is expected to take into account housing needs of an expanded city.

While Bangalore Development Authority (BDA) has so far been developing new layouts and allotting housing sites on its own, the CDP may give room for private partnerships. These will be in the shape of locations set apart for "budget housing" and apartment buildings in the new areas with a subsidy component from the Government.

With the government agencies so far going it alone in providing affordable housing for the middle income group, while the prices may be low, there have been drawbacks. There have been years of waiting in many cases and some layouts became tangled in legal disputes. The proposal, which may find place in the land use policy under the CDP, may allow BDA to provide the land and private developers to build houses or apartments. With the main cost component of the land taken care of by the government agency, the developers may be able to offer the house at rates considerably lower than those prevailing in the market. Land costs now account for 20 per cent or more of the development cost for builders. A two-bedroom apartment even in peripheral areas costs between Rs. 25 lakh and Rs. 35 lakh as a result. Cheaper housing from the builders is invariably located far from the city proper.

Under this arrangement, the developer may be responsible for getting the utility connections and providing any internal roads necessary but the clearances will come faster. The government agencies will keep an eye on factors such as quality of construction and the facilities provided to potential apartment owners.

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