PSU may build your dream house
The move intends to bring down rising property prices by offering stiff competition to private developers.
By Rajat Guha & Mayur Shekhar Jha, TNN |
NEW DELHI: The urban development ministry is planning to set up a public sector company that will acquire land in cities and develop housing complexes for middle and higher income groups. The move is aimed at moderating property prices and meet growing housing needs.
“The urban development ministry is in talks with various state governments to acquire land and develop both high-income and middle-income group housing. Development of shopping arcades and convention centres is also on the cards,” urban development minister Jaipal Reddy told ET.
The move intends to bring down rising property prices by offering stiff competition to private developers.
According to sources in Nirman Bhawan, the proposed company will focus on developing real estate across the country under a single umbrella even as state governments have their own agencies dedicated to housing development. Delhi Development Authority, Haryana Urban Development Authority, Punjab Urban Development Authority are some such agencies.
“Properties sold by the new company will be free from irritants like unclear land titles and faulty registration. Moreover, tabs would be maintained to check speculation in prices and the states would get the due amount of stamp duty,” a source said.
The government has already ensured that a certain proportion of housing is dedicated to the economically weaker sections of the society. Hudco has been investing in housing aimed at accommodating lower income groups and economically weaker sections of the society. This is the first time the government is considering building houses for high-income groups on such a scale.
As of now, DDA is the Capital’s biggest development agency which reports directly to the ministry. However, the authority’s performance has not been up to the mark. “There is an increasing emphasis on limiting DDA’s role to planning and strategising and not to implementation,” an official said.
rajat.guha@timesgroup.com
“The urban development ministry is in talks with various state governments to acquire land and develop both high-income and middle-income group housing. Development of shopping arcades and convention centres is also on the cards,” urban development minister Jaipal Reddy told ET.
The move intends to bring down rising property prices by offering stiff competition to private developers.
According to sources in Nirman Bhawan, the proposed company will focus on developing real estate across the country under a single umbrella even as state governments have their own agencies dedicated to housing development. Delhi Development Authority, Haryana Urban Development Authority, Punjab Urban Development Authority are some such agencies.
“Properties sold by the new company will be free from irritants like unclear land titles and faulty registration. Moreover, tabs would be maintained to check speculation in prices and the states would get the due amount of stamp duty,” a source said.
The government has already ensured that a certain proportion of housing is dedicated to the economically weaker sections of the society. Hudco has been investing in housing aimed at accommodating lower income groups and economically weaker sections of the society. This is the first time the government is considering building houses for high-income groups on such a scale.
ADVERTISEMENT
According to sources, the government’s plans for a pan-India venture for providing mid-segment and premium housing originates from the major demand-supply gap that the sector has seen in the past 3-4 years.As of now, DDA is the Capital’s biggest development agency which reports directly to the ministry. However, the authority’s performance has not been up to the mark. “There is an increasing emphasis on limiting DDA’s role to planning and strategising and not to implementation,” an official said.
rajat.guha@timesgroup.com
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
