Dozens of realty projects in the city planned on 200-acre areas have failed to take off this year,thanks to a government order (GO 45) issued in January.With builders refusing to comply with the order,which directs them to reserve 20% of built-up area for the economically weaker sections (EWS) and lower income groups (LIG) of society in every project,this land bank is sitting idle for several months now.
According to market sources,more than 40 builders,both from within and outside Hyderabad,were slated to start their ventures on this land this year.
The list of developers holding back their projects owing to the impracticality of the GO,include Aparna Constructions and Estates (P) Ltd,PBEL Property Development (India) Private Ltd,Legend Constructions,Sri Sreenivasa Constructions,Mantri Developers and so on.
We had about five ventures,both apartments and villas,lined up for 2011.While our original plan was to start work on them by November-December,we are now hoping to unveil them by at least March next year, said D S Prasad,director of the company that has over 60 acres of land,spread across Gachibowli,Chanda Nagar and Shaikpet,in its bank right now.Prasad is,however,clear that developing his properties in compliance with GO 45 is unviable.
Ditto,Krishna Reddy,managing partner of Sri Sreenivasa Constructions.Despite sitting on a space measuring close to 18 acres in Kondapur,the builder says he is in no mood to submit his plan to the municipal authorities for approval just yet.No builder can reserve such a huge chunk of their project for EWS and LIG segments.If we do,it will be impossible for us to find buyers not just for these units but also the regular units because of varying social standings of customers, Reddy explained pointing out how the stalemate would continue if the government did not revoke the GO.
Speaking on behalf of the local builder community,he also stated that a revision of the order,as has been suggested by a high power committee of the government recently,was not enough to pacify the industry,which is the second largest revenue and employment generator in the state.
As per the revised version of the GO,projects planned on areas ranging between one acre and one hectare (approximately two and half acres) can pay a shelter fee to avoid reserving any units for EWS and LIG customers.The rest (with land over one hectare) will have to keep aside 10% of the built-up area or 25% of its total units for these sections.
Such a rule is not good for most builders in the city as projects here are usually planned on large areas.While for apartments,the size of land normally ranges between 5 and 10 acres,for villas it goes up to 40 acres, said Anand Reddy,executive director,PBEL reiterating that the GO,even after being revised,is unfeasible to implement.
Predictably,developers suggest that the government instead impose a cess (similar to the education cess) on denizens or provide certain additional benefits to the industry to make its EWS & LIG dream take shape into reality
Comment :
So this is what is coming soon! "As per the revised version of the GO,projects planned on areas ranging between one acre and one hectare (approximately two and half acres) can pay a shelter fee to avoid reserving any units for EWS and LIG customers.The rest (with land over one hectare) will have to keep aside 10% of the built-up area or 25% of its total units for these sections." What we understand is that the 25% number of units will be of specified very small size not regular size of apartment or villa.
Keyword Tags Hyderabad News,GO45, GOMS 45, LIG EWS Reservation Rule
Rate News on a Scale of 5. 5th Star Correspond to 5.
VIEW DETAILS. BOOKING IS OPEN
