TN government promotes affordable housing

Chennai

With the soaring land prices, input and material costs, lower income groups (LIG) and middle income groups (MIG) are among the worst hit across the state to get their dream homes. While private developers focus on apartments above Rs 30 lakh, there are limited players to focus on LIG and MIG categories.

The Tamil Nadu Housing Board which has land parcels across the state could not do much to provide shelters due to inherent limitations to do residential projects.

However, in a significant development, the state government is now gearing up to mobilise all its resources to enter the area of housing development, according to senior government officials. First, the objective is to go for public-private partnership model (PPP), and float an open tender by inviting private developers to construct apartments and commercial complexes in order to enable them share the developmental proceeds with the TNHB.

The TNHB land ownership limit had dwindled to just 300 acres across the state over the years with 1,600 acres embroiled in legal procedures. It is not far off that the board may even exhaust this land in the coming years, it is felt.

Among other measures include a transparent system whereby the government would develop 30 per cent of the land area besides additional 10% by undertaking the entire construction of the housing complex.

Land pooling is yet another concept whereby 50% of the land area would be acquired at market value from the landowners. The government will undertake to develop the land and provide 20% to 30% of the built-up area to the landowners apart from offering cash incentives.

The government has already announced a satellite township scheme in Thirumazhisai at a cost of Rs 2,160 crore to be developed on 311.05 acres of land owned by the Tamil Nadu Housing Board. The township would include villages like Chembarambakkam, Kuthambakkam, Parvatharajapuram, Narasingapuram and Vellavedu. In all 12,000 flats will be constructed and made available to the economically weaker section and low and middle income groups.

Further negotiations will be held with the land owners to acquire 12.87 acres to create an approach road to the satellite town for providing basic infrastructure facilities.

Source: http://content.magicbricks.com/tn-government-promotes-affordable-housing