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.

Courtesy:- ET dt:- 23-10-2009