Public Sector Undertakings units used for Low cost Housing
Low cost Housing or Affordable Housing under the program Housing for All, the government has identified vast tracts of land in eight cities belonging to Public Sector Undertakings (PSUs) to be monetized or leased for low cost houses for the poor. Cities include Gurgaon, Hyderabad, Pune and Ranchi.
Ministry of Housing and Urban affairs has finalised Public Private Partnership (PPP) model for Affordable Housing. It has to be stated with land owned by 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).
Low cost Housing is facing the problem with the scarcity of land. Beneficiaries have been identified in many states but land is the issue. A working model has been finalised where land will be identified and then the PSU will either sell it or lease it to the Private Partner who would build low cost houses.
Committee has favoured the cross subsidy model for the private developer who will be able to bid the project and would be required to design the product mix and construct all the dwelling units.
It means that the Private developer will be a part of land in another part of the city where he can develop the high end premium flats and sell them at a premium price, but with a condition of building low cost housing in the identified PSU land.
Two types of flats low cost and high end can be built on the same tract of land depending on the size. Developer will bear the entire project cost including construction costs, taxes and statutory levies. The facilities and open spaces to be provided have been identified.
National Buildings Construction Corporation (NBCC) has been tasked with identification of sick PSU land and framing a model memorandum of understanding and other contracts.