Disappointed with factors like FSI and NA clearance, real estate developers in Gujarat find draft better than final township policy that has been announced by the state government. After much deliberations, the Gujarat government finally announced the much-awaited regulations for residential townships.
According to the new policy, real estate developers can avail a floor space index (FSI) of 1.5, irrespective of any zone in any urban area in Gujarat for township projects. However, developers feel the free FSI allowed till 1 (the rest 0.5 can be purchased on payment of 40-50 per cent of jantri rate) is less as compared to the earlier drafts of the policy.
"The earlier drafts of the policy had free FSI higher than 1 which is being offered now. We were disappointed since we were expecting more free FSI," says Rajesh Brahmbhatt, chairman of Safal Infrastructure Pvt. Ltd.
Safal Infrastructure itself is planning to set up a residential township in an area of 200 acres at an investment of Rs 100 crore on the outskirts of Ahmedabad.
Under the policy, any real estate developer who intends to set up a residential township will be required to buy a minimum of 200 acres of land in urban development authority areas and 100 acres in urban authorities operating in municipalities. Moreover, The developer will be required to set aside 60 per cent of land for residential purpose, and use the rest for common infrastructure like roads, streets, water and electricity supply, and drainage, among other things.
However, FSI is not the only thorn-in-flesh for the developers. "The earlier drafts had lessened the complications arising out of purchase of large chunks of contiguous land by real estate developers. In the draft, the government had offered to assist in negotiations with farmers in purchase of contiguous land but that is missing in the final policy. In a way, I would rate the draft above the actual policy," says Bhavin Mehta, head-business development at Ganesh Housing Corporation Limited (GHCL), which is developing 'Smile City', a residential township spread across 500 acres near Sardar Patel Ring Road.
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The developers are also demotivated by non-agricultural (NA) clearance that has been incorporated in the policy. "Unlike the previous draft which didn't require developers to get NA clearance, the policy has made it compulsory. We hoped it would have been scrapped but in vain," adds Mehta.
Meanwhile, developers believe the policy will overall boost the supply of residential units including affordable homes in next couple of years. About five per cent of the area needs to be set aside for socially and economically weaker sections, according to the policy.