Punjab Govt to auction land reserved for EWS housing in private projects

In a breather for private realtors, the government has proposed to auction the land reserved for the economically weaker section (EWS) housing in around 40 mega projects across the state. The government will use the proceeds to construct EWS housing near urban conglomerates like Mohali, Ludhiana and Jalandhar.

Scheme remained non-starter

The EWS housing scheme has remained a non-starter. Reluctance of the private builder lobby to allow EWS housing next to their high-end flats also delayed its implementation

Under the policy, a private realtor has to reserve 5% of the gross area of the project for EWS housing. For group housing, 10% of the total number of flats have to be reserved for EWS

The Department of Housing and Urban Development would auction nearly 500 acres for around Rs 2,000 crore and use the sale proceeds to raise the EWS housing on chunks of land to be bought for the purpose. The policy would require approval of the Cabinet, said a senior government functionary.

By auctioning the land, the policy would keep the door open for the builder to buy back the same chunk of land that was earlier reserved for EWS houses.

The EWS housing scheme has remained a non-starter so far. Reluctance of the private builder lobby to allow EWS housing next to their high-end flats also delayed the implementation of the scheme. Under the policy, a private realtor has to reserve 5% of the gross area of the project for EWS housing. For group housing, 10% of the total number of flats have to be reserved for EWS.

Sources in the department said the government had been exploring the option of providing one marla plots in the mega projects to EWS allottees and allowing them to raise construction as per the defined specifications. However, integration of the basic amenities with that of the mega projects and leaving land for the basic amenities was a hurdle.

Jagjit Singh Majha, president, Punjab chapter of the Confederation of Real Estate Developers Association of India (CREDAI), said they had asked the state government to return the land to them at the market rate and use the sale proceeds to float EWS housing elsewhere.

To incentivise EWS housing, the Local Government Department allows an EWS colony on 1.5 acres against five acres required earlier and a group housing project under affordable housing can be built on half an acre against two acres. The built-up or saleable area for residential and commercial projects has also been increased by 10%, subject to certain conditions.