Punjab to acquire 1,500 acres for EWS housing scheme

The Punjab Housing Department will acquire a total of 1,500 acres in six cities, including Ludhiana and Mohali, to provide residential plots to those belonging to economically weaker sections (EWS).

The other four cities to be covered under the scheme are Jalandhar, Bathinda, Amritsar and Sangrur.

The decision was taken at a Punjab Cabinet meeting on Thursday.

While giving approval to it, Chief Minister Bhagwant Mann also allowed the Housing Department to auction 700 acres worth around Rs 2,000 crore, which were earlier reserved for EWS housing in 40 mega projects across the state.

The department will use the proceeds to buy new land for EWS housing near the six cities. The EWS housing scheme has remained a non-starter so far.

According to department sources, the reluctance of private builders in allowing EWS projects next to their high-end flats delayed its implementation.

Under the policy, a realtor had to reserve 5 per cent of the gross area of his project for EWS housing. For group housing, 10 per cent of the total number of flats had to be reserved for EWS.

A source said the government had been exploring the option of providing one marla plots in mega projects to EWS allottees and allowing them to raise construction as per the defined specifications.

However, the integration of basic amenities with that of the mega projects and leaving land for basic amenities was a hurdle. Private realtors have been demanding that the government should return the land to them at the market rate and use the sale proceeds to float EWS housing elsewhere.

Nod to policy on external development charges

The Cabinet also gave approval to a policy to optimally utilise the external development charges (EDC) collected by various development authorities on behalf of government from promoters who develop their projects under the Punjab Apartment and Property Regulation Act, 1995.

As per this policy, 50 per cent of the EDC collected from promoters will be utilised for the development of infrastructure within the periphery of a colony or township, whereas the remaining 50 per cent will be utilised by the government for the development of major projects in the state.