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Sizeable thrust

In a development that may prove to be a game changer for the recession-hit realty sector in Haryana, the BJP government has unveiled a bonanza for the small and medium builders.

Sizeable thrust


Pradeep Sharma

In a development that may prove to be a game changer for the recession-hit realty sector in Haryana, the BJP government has unveiled a bonanza for the small and medium builders. Earlier this week the Haryana Government significantly revised the area norms of licensed colonies falling under the medium and low potential zones.

The area norms for the plotted colony in a medium potential zone have now been reduced from 50 acres to 15 acres, while for the group housing colonies these norms have been slashed from 10 acres to 2 acres. Similarly, the area norms have have been brought down from 25 acres to 10 acres in low potential zone for plotted colonies in the low potential zones and from 5 acres to 1 acre for the group housing projects.

These far-reaching changes were made following the recommendations of a four-minister Cabinet Sub Committee headed by Finance Minister Capt Abhimanyu. The committee was constituted on February 2, 2015, to take a holistic view regarding revision in area norms for grant of licenses for various types of colonies in low and medium potential towns by the Town and Country Planning Department.

Earlier, on October 26, 2015, the Haryana Government had announced a New Integrated Licensing Policy-2015 (NILP-2015) for the Hyper and High Potential Zones which brought down the area norms for establishing a colony from 100 acres to 25 acres. The government had allowed the internationally-acclaimed models of Transferable Development Rights (TDR), allowing farmers or landowners with small pieces of land to monetise their land at the current market price. “The relaxed norms would go a long way in giving the much-needed fillip to the realty sector. However, the central and the state governments need to go in for more real estate reforms to put the realty sector back on track,” says Suresh Aggarwal, president of the Haryana State Property Dealers Welfare Association.

The smaller projects can be completed faster and as a result the cost escalation for developers due to delays and low demand will be taken care of, while the buyers, too, will be getting homes in time. “Area norms were a major obstacle in the growth of realty sector in several areas in the state as because of these and high price of land realty projects had become unviable for small and local builders. The change in area norms is a positive step that will add momentum to the property market in the state”, said Amit Gera, founder of Gera Engineers.

While announcing government decisions on February 3, Haryana Chief Minister Manohar Lal Khattar hoped that the new regime would provide a level playing field to the small and medium builders and give a push to the ‘housing for all’ initiative.

However, as the size of new residential colonies would be small, it would not be possible to provide the required community facilities, particularly those of higher order facilities such as high school, dispensary, hospital etc. in a planned and integrated manner. Therefore, it has been proposed to take over 10 per cent of the licensed area, free of cost, from these licensed colonies and community facilities should be developed by the state government or agencies designated for this purpose.

Currently, the completion of residential colonies according to the approved plan and specification is being ensured through bank guarantee equivalent to 25 per cent of the estimated cost of Internal Development Works (IDW).

The developer would be given an option either to furnish required bank guarantees as per the existing provisions or mortgage 15 per cent of saleable area in favour of the DGTCP, to be released proportionately after the grant of completion certificate for the licensed area. This would help in unblocking of financial resources with small/local real estate developers, which would have otherwise been blocked against bank guarantees, a senior official added.

Meanwhile, in order to protect the interest of the allottees, the coloniser would be allowed to sell only 50 per cent of the saleable area till completion of IDW and issuance of completion certificate of development works by the department. Till then, the balance 50 per cent of the saleable area of the project, including the 15 per cent mortgaged saleable area, would not be sold by the coloniser.


Re-categorisation of Potential zones

Hyper potential zone
Area forming part of the development plan of Gurgaon-Manesar Urban Complex


High potential zone-I

Areas forming part of development plan of Faridabad-Ballabhgarh Urban Complex,Part of Sohna Development Plan falling in Gurgaon District, Gwal Pahari


High potential zone-II

Periphery Controlled Areas of Panchkula, Panipat and Areas forming part of development plan of Sonipat-Kundli Urban Area Complex.


Medium potential zone

Areas forming part of development plan of Karnal, Kurukshetra, Ambala, Yamunanagar-Jagadhari, Bahadurgarh, Hisar, Rohtak, Rewari, Gannaur, Palwal, Hodal, Bawal, Dharuhera, Prithla, The Urban Areas declared under clause (o) of Section 2 of the Haryana Development and Regulation of Urban Areas Act, 1975 (8 of 1975) to cover the Controlled Areas declared under the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963 (Punjab Act 41 of 1963) in Faridabad District (excluding the Controlled Areas of Faridabad-Ballabhgarh Complex), Oil Refinery Panipat (Baholi) in Panipat District.


Low potential zone-1

Bhiwani, Fatehabad, Jind, Kaithal, Narnaul, Sirsa, Jhajjar
Low potential zone-2
Gharaunda, Hansi, Assandh, Indri, Naraingarh, Narwana, Nilokheri Taraori, Ratia, Shahabad, Tohana, Talwandi Rana, Mahendergarh, Any other town not appearing in any of the potential zones.


Deen Dayal Jan Awas Yojna

Deen Dayal Jan Awas Yojna is a policy for providing affordable plotted housing for low and medium potential towns. It aims at development of ‘High Density Plotted colonies’ in Low and Medium Potential towns of the state. Under the scheme, all such projects shall be required to be necessarily completed within seven years from the date of grant of licence. The projects shall be allowed in the residential zone of the notified Development Plans of Low and Medium Potential towns of the state. The minimum and maximum net planned area for such projects shall be five acres and 15 acres, respectively.

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