Affordable housing policy fails to make much headway

Kuldip Bhatia
Ludhiana, September 14

Even though the Punjab Government has introduced several housing and affordable housing policies one after the other right from June 2015 when the Modi-1 government had introduced the Pradhan Mantri Awas Yojna (PMAY) with a credit-linked subsidy scheme (CLSS), the affordable housing sector in the state is yet to make any headway towards achieving its desired objective.

Soon after notifying Punjab Shehri Awas Yojna (PSAU) in August 2017, the state government came out with Punjab Affordable Housing Policy in March 2018 in a bid to meet an acute shortage of affordable dwelling units in major towns. However, even after one and a half years of the affordable housing policy taking effect, not even a single affordable housing colony has taken licence in Ludhiana from the Greater Ludhiana Area Development Authority (GLADA) to date.

According to details uploaded on the web site of Real Estate Regulatory Authority (RERA), Punjab, only six affordable colonies (two in Banur, one each in Patiala, Mohali, Kharar and Kapurthala) have so far been registered in the state under the provisions of the Punjab Affordable Housing Policy, 2018.

Punjab Colonisers and Property Dealers Association secretary GS Lamba feels that in the wake of severe recessionary trends prevailing in the real estate sector, the steps taken by the government to provide relief to realtors and boost affordable housing seemed insufficient.

“While saleable area has been increased from 55 to 65 per cent, powers given to STPs and DTPs to approve layout plans, reduction in minimum permissible area from 10 to 5 acres and reduction in road width requirement in case of group housing affordable colony, are welcome steps but a lot more needs to be done to give this sector an impetus and hopes of revival,” he opines.

Lamba pleaded that like its neighbouring state Haryana where change of land use (CLU) charges have been waived and external development charges (EDC) slashed, the Punjab Government should also provide a package of relief by waiver of CLU and cutting down EDC. “The least the government can do is to levy the EDC on plotted area basis rather than gross acreage, which will practically reduce the EDC by almost 50 per cent,” he added.

A city-based realtor, Gulshan Kumar (of GK Group) has sought relaxation in PUDA Building Rules 2018 in case of residential plots in affordable colonies and also permission for 70 per cent ground coverage in case of these plots.

Among other steps needed to be taken for the ailing real estate sector, he has suggested that rate of GST (on affordable housing) be slashed as had been done by the union government, registration expenses at the tehsil level be reduced, 2 per cent cess in addition to stamp duty be waived and the PLRS fees be reduced.