Bids for 1 lakh houses for para forces soon

NEW DELHI: The government will soon invite bids from realty and construction companies for erecting one lakh dwelling units for paramilitary forces on a public-private partnership basis, providing a significant boost to the construction industry even as it debates exit from the fiscal stimulus measures it undertook last year to boost the economy.

The ministry of home affairs will shortly invite bids for the first phase of the scheme that envisages construction of 11,000 houses spread over four clusters including one near the national capital region. The scheme was announced by the United Progressive Alliance government in its first budget in July after general elections.

The project will come as a major boost for realty companies, recovering from a severe demand slowdown , and provide them with assured returns of nearly 15-18 % , the official said.

The government is expected to provide a support of about Rs 1,000 crore to the project that will be implemented on build operate transfer (BOT) basis over the next few years. The total project size, including the cost of land, is estimated at Rs 15,000 -20 ,000 crore.

The Central Public Works Department that implements most of such housing projects for the government will also be eligible to bid for this project.

The government will provide land for the development of these houses that will be built and maintained for 15 years by the builder and then transferred to the government. In the first phase land will be provided in Gurgaon near Delhi and Assam.

The government will pay a monthly installment towards the maintenance and the builder will also be allowed to sell additional units that it manages to build in the given land.