Rajasthan govt to take Rs 200 cr loan from HUDCO to build 23,000 homes

05 Jan 2022 CW Team

The Rajasthan government plans to build 23,000 homes after getting a loan or Rs 200 cr from the Housing and Urban Development Corporation Ltd (HUDCO).

The urban housing department had earlier planned to build about 23,000 homes for the economic weaker section (EWS) and lower-income group (LIG) across the state under the public-private and partnership (PPP) model. But, the construction work was delayed after just 10-15% of allottees managed to deposit the installments.

An official told the media that the department would take a loan of Rs 200 crore to achieve these projects. While Rs 160 crore will be used to build the pending 19,244 homes under Jan Awas Yojana, Rs 40 crore will be spent on developing 4,112 affordable homes.

Previously, to accomplish the goal of the ambitious scheme, the state government had rendered significant relaxations to developers in the state. The government had relaxed the conversion of land policy for developers developing homes for the economic weaker section (EWS) and the lower income group (LIG) under the Mukhyamantri Jan Awas Yojana. But, nothing can provide the project with momentum during the pandemic.

Private parties constructing residential projects on their land have to reserve 10% of the saleable area in offered colonies and a 7.5% floor area ratio in apartments for EWS and LIG categories. But, if the plotted development is less than 2 hectares and lower than 5,000sq m (flat development), the developers have the choice of paying the costs. For plotted development, developers can deposit 10% value of the saleable area land. This price is levied according to the reserve price or district lease committee (DLC) rates. Similarly, the department costs Rs 100 per sq ft for 7.5% of the floor area ratio (FAR) for flat construction.

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Also read: Govt approves construction of over one lakh houses under PMAY-U

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