Satellite towns may rejuvenate mega cities
The Centre is formulating a new policy for creating around 60 new towns on the lines of Gurgaon and Noida. Connaught Place beats Nariman Point
By Rajat Guha, TNN |
NEW DELHI: The Centre is formulating a new policy for creating around 60 new towns on the lines of Gurgaon and Noida. Cities with a population of 65 million would create such towns. The Urban Development Ministry is discussing the matter with states, said Urban Development Secretary M Ramachandran.
States have been asked to demarcate areas around major cities for developing new towns. “All new towns would get central funding under Jawaharlal Nehru National Urban Renewal Mission. Around 30 new towns would be taken up in the first phase and those located around mega cities would qualify,” Mr Ramachandran said. The government is of the view that the country is in dire need of residential accommodation as well as commercial space.
States will get financial assistance from the Centre only after meeting certain criteria. State governments would have to conduct vigorous feasibility studies relating to town creation.
Once done, the projects would have to be approved by rating agencies, banks and consultants. States would have to compete with each other for central funding.
To qualify for funding, states would also be required to reduce stamp duty, rationalise house tax, reform rent control laws and abolish archaic urban land ceiling laws.
The government believes that the policy for creation of new towns would ease the problem of rising real estate prices. “There is no space left to accommodate the rising population in mega cities. Therefore, people would get houses at fairly cheaper rates in the new towns and cities. The same would hold true for commercial and industrial space as well,” an official said.
States have been asked to demarcate areas around major cities for developing new towns. “All new towns would get central funding under Jawaharlal Nehru National Urban Renewal Mission. Around 30 new towns would be taken up in the first phase and those located around mega cities would qualify,” Mr Ramachandran said. The government is of the view that the country is in dire need of residential accommodation as well as commercial space.
States will get financial assistance from the Centre only after meeting certain criteria. State governments would have to conduct vigorous feasibility studies relating to town creation.
Once done, the projects would have to be approved by rating agencies, banks and consultants. States would have to compete with each other for central funding.
To qualify for funding, states would also be required to reduce stamp duty, rationalise house tax, reform rent control laws and abolish archaic urban land ceiling laws.
The government believes that the policy for creation of new towns would ease the problem of rising real estate prices. “There is no space left to accommodate the rising population in mega cities. Therefore, people would get houses at fairly cheaper rates in the new towns and cities. The same would hold true for commercial and industrial space as well,” an official said.
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