Sick PSUs’ land to be used for low-cost housing

Sick PSUs’ land to be used for low-cost housing
12/07/2017 , by , in News/Views

The Modi government has decided a new way to provide land for its Housing-For-All programme by selling or leasing the land which belongs to sick public sector undertakings in the cities including Gurgaon, Hyderabad, Pune and Ranchi. The ministry of housing and urban affairs has finalized a public private partnership (PPP) model for the ‘affordable housing for poor’ project. The land owned by PSUs like HMT Bearings (Hyderabad 14.48 acre), Hindustan Antibiotics (Pune 62 acre), Heavy Engineering Corporation (Ranchi 60 acre) and Indian Drugs and Pharmaceuticals (Gurgaon 10-15 acre) have been selected initially. National Buildings Construction Corporation (NBCC) will identify sick PSU land and frame a model memorandum of understanding and other contracts.

Private developers would be allowed to bid for the projects. A four member committee constituted in May has finalized a working model and has favoured a cross subsidy model for the private developers. This would mean that the private developer would be given either a tract of land in another part of the city where it would be allowed to build high-end flats and sell them at a premium with a pre-condition of building low cost housing in the identified PSU land.

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