The
Rajasthan government has rolled out new urban housing
policy, which promises 1.25 lakh dwellings over next five years for
economically backward section.
As per the
policy, the state government would rope in private developers under the
public-private partnership PPP model for developing low cost housing with Awas
Vikas Limited as the nodal agency. The state urban development and housing
minister Shanti Kumar Dhariwal said that the policy would have five models.
“Apart from
government bodies like Rajasthan Housing Board (RHB), Jaipur Development
Authority (JDA) and local bodies, private developers will also play an
important role in providing affordable accommodation.
Out of five
models, four involve active participation of private developers while the
fifth model is meant for government-run urban agencies like RHB, JDA and municipalities,”
he said.
The new
housing policy is an offshoot of estimation by Planning Commission, which
indicated that the shortage of housing units in the state would go up to 17
lakh in 2021 from 10.70 lakh in 2007.
Under the
policy, the state government has made it mandatory for RHB to construct 50% of
the total dwellings for Economically Weaker Section (EWS) and Lower Income
Group (LIG). Similarly, JDA and other Urban Improvement Trusts will have to
reserve 25% of land in any residential scheme for economically weaker section.
The private developers
too will have to keep aside 15% of the total constructed units or 5% of the
total project area for EWS and LIG in any residential township or Group Housing
Schemes.
Apart from
providing low cost accommodation to LIG and EWS, the state government will also
allot free accommodations to slum dwellers.
“Under this
model, the state government will invite global tender and the successful bidder
would have to develop residential units in the slum areas. The developers will
have to hand over the houses to local bodies for the free allotment of houses
to the slum dwellers. The developers, in return will get the remaining land as
per the prescribed formula for commercial use with 1:4 Floor Area Ratio as
against the normal 1:1.8 FAR.
Low-cost
housing is likely to provide a great opportunity for battered real estate
developers in the form of public-private partnership (PPP). According to a
recent report by industry body Assocham PPP model is the most viable business
model for such projects. “The model will help the cash-strapped developers, who
are finding it difficult to fund their projects on a standalone basis,” the
study says.
