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The Confederation of Real Estate Developers Association of India (Credai) has pitched for reduction of mandatory provision of reservation of housing units for economically weaker section (EWS) to five per cent of the total residential built-up area from the prescribed quota of 15 per cent in the state's new affordable housing policy.
"Reduce mandatory provision of 15 per cent to minimum five per cent as small percentage will also create a sizeable numbers of units," DS Tripathy, joint secretary, Credai National wrote to Injeti Srinivas, principal secretary, state Housing & Urban Development Department(H&UD) .
The policy proposes that private developers of apartment buildings and group housing projects spread over a plot size exceeding 2,000 square meters will earmark at least 15 per cent of their construction area for making dwelling units for EWS and LIG categories (with EWS units not less than 50 per cent).
The realtor body has asked the state government for flexibility option between EWS and LIG instead of making it mandatory.
"Instead of keeping mandatory clause for both EWS and LIG, a provision of 'either or' will give better flexibility to developer fraternity to build houses according to the demands in particular location. In prime locations, EWS provisions will be better proposition than LIG," suggested Tripathy, former president of the state chapter.
Credai has also sought exemption of all statutory fees and deposits, if any, taken by the development authority or municipal body for approving the portion EWS, LIG (lower income group), LMIG (lower middle income group) and MIG (middle income group).
"The proposed selling rates of such housing are matching more or less with the construction cost and charging any fees will not only increase the cost of projects but also may render projects nonviable for developers fraternity," he maintained.
For voluntarily building EWS and LIG dwelling units beyond the mandatory provision of 15 per cent of built-up area, the policy mandates that private developers should provide minimum five acres of land for the project, but Credai wants it to be reduced to one acre.
