CHANDIGARH: The Punjab government has decided to involve private builders to provide affordable houses to the largest number of people in the shortest possible period 4S part of the move to privatize housing sector.

It is proposed to do away with the conventional plotted development System which is considered to be unsuited as it is inefficient and highly wasteful with respect to money, time, land and other scarce resources. The prefence would be for group or cluster housing.

Steps were taken earlier last year to attract private builders but that scheme did not find favor with the builders, the policy has been reformulated. The new proposals would be submitted to the committee of administrative secretaries headed by Chief Secretary A.S.Chatha which is going into privatization.

According to the proposal, the house seekers would not be required to pay to the builder at the time of registration; it is only at the time of allotment that 10% to 20% of the total cost of the house would be charged. It would require full backing in procuring institutional finance. And reasonable guarantee to, buy back any unsold housing stock under certain conditions.

The basic thrust of the policy would be that as far as possible, plotted development on the conventional lines would be totally discouraged. Smaller plots would be provided in clusters on a small percentage of the total area to the higher income groups and for the other categories it would be closer or group housing.

Heavy penalties would be provided in Case the builder fails to complete the project within four years. In order to ensure that the project is completed in time, the allotter would have to deposit one per cent of the total cost of the project in any scheduled bank in a joint account of the allotter and the Punjab Housing Development Board.

The ownership of land or any building constructed thereon would vest in the Housing Board till the entire cost of the land together with the interest or other dues are paid by the builder.

 

Article extracted from this publication >>  December 17, 1993