Pvt hand in Delhi housing

Realty builders welcome DDA's decision

Real Estate developers and builders have welcomed the Delhi Development Authority's proposal to allow private players in the Delhi housing sector. The industry have given a thumbs up to the proposal but at the same time is waiting for further clarifications on the issue.

Sanjay Chandra, executive director, Unitech Constructions Ltd, believes the move will provide consumers with more options without compromising on quality.

"The entry of private developers will see intense competition and ultimately the consumer will be the king. Delhi will get its first taste of quality housing at competitive prices," Chandra says.

Rohtas Goel, chairman and managing director, Omaxe Constructions Ltd, has also welcomed the step but was still waiting for the final draft.

"This is a positive development and developers in the National Capital Region (NCR) will get an opportunity to do business in Delhi. However,this is just the first step and we are still awaiting for the government to come up with the full policy," Goel says.

The industry is also not overtly concerned with the clause in the new policy,which says that 35 per cent of the dwelling units have to be provided for the lower income groups (LIGs) and economically weaker sections (EWSs).

"The government has to shed more light on the matter and we will look at the fine print. But having said that, it will still not be a deterrent for us, since we always do our feasibility study before putting our hand in a project," Goel adds.

Pradeep Jain, chairman, Parsvnath Developers, feels that allotting 35 per cent of dwelling units is actually a good step.

"There is need for more clarity here but it appears to be a good step. The interests of the have nots have to be looked after too," he adds.

Jain, however, is concerned about the transparency of the whole procedure. "The priority has to be a final policy as soon as possible and also to ensure full transparency," he adds.

However, Dinesh Chandiok, chief operating officer, Ansal Properties and Infrastructure Ltd, while welcoming the move, said the Delhi Development Authority should have kept housing for the LIGs with itself.

"It is good for the society but will raise costs and ultimately the end-user, i.e, the consumer will have to bear the cost. The private players are good at premium housing and they should be involved only to that extent," he says.

The industry also believes that availability of land remains one of the key issues in Delhi.

"The policy opens a door of opportunity for us but the government in their final plan has to ensure that developers get enough land. Further it will turn out to be a damp squib if we get the leftovers and the government keeps the prime locations to itself," says Pankaj Pal, vice president, Vatika group.

"Ensuring land availability is a challenge and what we need here is a restructuring of the existing available land, most of which is occupied by slums. The government has an active role to play in this and private participation will be successful once it is done," says a DLF spokesperson.