Sick PSUs’ land to be used for low-cost housing

In a fillip to its flagship Housing-For-All programme, the Modi government has identified vast tracts of land in eight cities belonging to sick public sector undertakings (PSUs) to be monetised or leased for low cost houses for the poor. These cities include Gurgaon, Hyderabad, Pune and Ranchi.
Working on PMO directives, the ministry of housing and urban affairs has finalised a public private partnership model to provide affordable housing. A beginning would be made with land owned by HMT Bearings (Hyderabad 14.48 acre), Hindustan Antibiotics (Pune 62 acre), Heavy EngineeringCorporation (Ranchi 60 acre) and Indian Drugs and Pharmaceuticals (Gurgaon 10-15 acre).
“The biggest problem that the programme has been facing is the paucity of land. In many states, the beneficiaries have been identified but land remains an issue,” said a senior official.
A four-member committee constituted in May has finalised a working model. Land will be identified and then the PSU would either sell it or lease it out to a private partner, who would build low cost houses.
Private developers would be able to bid for the project and would be required to design the product mix and construct all the dwelling units. The committee has favored a cross-subsidy model for the private developer.
This would mean that the private developer would be given either a tract of land in another part of the city where it would be allowed to build high-end flats and sell them at a premium with a pre-condition of building low-cost housing in the identified PSU land.
Sources indicated that the two types of houses – low cost and high-end – could also be built on the same tract of land depending on the size.
Entire project cost inclusive of construction cost, taxes, and statutory levies would be borne by the developer. Infrastructure facilities and open spaces to be mandatorily provided have been identified. The developer would maintain the houses till they are allocated.
Sources said the National Buildings Construction Corporation (NBCC) has been tasked with identification of sick PSU land and framing a model memorandum of understanding and other contracts.
State governments would facilitate affordable housing projects through single window clearances and fast track approvals, waivers and reductions wherever possible.

Source- ETRealty