Date:19/11/2008 URL: http://www.thehindu.com/2008/11/19/stories/2008111960820600.htm

Andhra Pradesh

GHMC’s novel offer to builders

HYDERABAD: Greater Hyderabad Municipal Corporation has offered to do away with all fees and charges to be paid for development provided builders take up low cost housing for the poor and weaker sections.

Commissioner S.P. Singh, who had publicly floated the idea a few days ago, is said to have made the proposal to some builders during a meeting. He had urged them to go for building apartments for Economically Weaker Sections (EWS) and the Low Income Groups (LIG) mooting the base price of Rs. 2 lakh per unit.

Developers can follow guidelines formulated by Government of India for such affordable housing where EWS units should be of 215 sq.ft size (20 sq.mts) and double the size for LIG units. The municipal corporation would not take its usual fees charged for builder permit, betterment, external betterment and so on, which costs substantially due to recent hikes.

Mr. Singh, official sources said, told the gathering which included noted real estate firms like SMR Builders, PBEL Development, Ambience Properties, Manjira Constructions, DSL Infrastructure, Ashoka Developers and My Home Constructions, that a list of probable buyers too would be given from its database as many had applied for the Indiramma housing scheme.

Civic infrastructure like roads, sewerage, streetlights and other amenities would be built for free for such housing plus speedy clearance of the plans. GHMC was also ready to assist in link-up with banks for providing loans.

The beleaguered developers, hit by current economic squeeze, can make use of their inventory of machinery and men for such projects as there was ‘great demand’. They can even go for high rises with lifts if the plot size permits as apartments on higher floors could be sold for a higher price to cross-subsidise the costs, he suggested.

But, common building rules would have to be adhered to and there was no case for allowing more built up space than what the rules permit, official sources affirmed. The suggested price of Rs. 2 lakh per unit was not cast in stone and final figure could be arrived at once concrete proposals are submitted, it was indicated.