Haryana Government has made a good news for builder by reducing the minimum land requirement to build township from 100 acres to 25 acres. The policy is named as New Integrated Licensing Policy (NILP) unveiled on Friday, 24 October 2015.
It is expected that the policy will help the real estate market of NCR which has going through a prolonged slump. The policy is applicable in the high and hyper potential areas in NCR and the state capital region (SCR). It will cover the regions including Gurgaon and Manesar, Faridabad, Ballabgarh, Sohna, So nipat, Kundli and Panchkula.
The slashing the minimum land quantum for large housing projects to 25 acres also means acquisitions of this scale won’t attract tough clauses of the Land Acquisition, Rehabilitation and Resettlement Act, which is applicable for acquisitions above 50 acres.
Since the Manohar Lal Khattar-led BJP government took the reins of the Haryana government, only 12 housing projects licenses have been issued to the builders from October 2014 till now. But this is not only the reason behind the slump of the real estate market. The state stopped issuing licenses to builders in September 2014 when the model code of conduct for the assembly polls came into effect. The new government only resumed giving out housing licenses in June.
While unveiling the policy (NILP) in Chandigarh, the Chief Minister of Haryana said that he was hopeful that 2 lakh dwelling units under the affordable housing scheme would be built by 2019. And the government expects it to generate a revenue of Rs 1.25 lakh crore.
Apart from this, the policy NILP also plugs an illegal practice of developers signing memoranda of understanding (MoU) to fulfil the 100-acre cap. There had been instances in the past when builders have inked MoUs with landowners and apply for a license.
By this policy, the developer/builder who want to use farmer’s land for their project will have to sign a TDR agreement (Transferable Development Rights) to take a step forward towards the license. On this, the CM said that this will ensure that farmers or landowners will get the market price from the builder for their land. The government will be a facilitator as the custodian of farmers’ interests. The TDR certificate will be valid for two years from the date of issuance.
And further Mr. Khattar said that we reiterate we have zero tolerance for corrupt practices. Just because of the wrong policy of the previous government, 10,000 acres of land had been lying unutilized in Gurgaon alone. You can imagine the condition of other places.
Source: www.economictimes.indiatimes.com