CREDAI seeks reduction in EWS quota for new housing policy
The Confederation of Real Estate Developers Associations of India (CREDAI) which represents the organised real estate developers and builders across the country is seeking a reduction of mandatory provision of reservation of housing units from 15 percent to 5 percent of the total built up area for economically weaker section (EWS) quota.
The joint secretary of Credai National pitched reduction in this mandatory provision in state’s new housing policy, so that small percentage would also be able to create a sizeable number of units.
The policy says that private developers of group housing projects and apartment buildings that are spread over 2,000 square meters of area will have to reserve at least 15 percent of construction area for developing housing units for EWS and LIG categories (minimum 50 percent units for EWS).
The apex body has asked the state government to offer flexibility option between EWS and LIG than making it compulsory. This will lead developers to construct residential units based on the demand in a particular location. For instance, EWS provision is a better proposition in prime locations as compared to LIG.
CREDAI is also demanding exemption of all possible deposits and statutory fees taken by the authorities (development authority or civic body) to approve the portion of MIG (middle income group, LMIG (lower middle income group), LIG (lower income group) and EWS.
The selling rates which are proposed for such housing is almost equal to the construction cost. Thus, if any extra fee is charged it will not only increase the cost of project but may also prove non-viable for developers.
As of now, if developers willingly develop residential units above 15 percent of built-up area, then they have to provide minimum five acres of land for the project. But CREDAI is seeking to reduce this limit to one acre.
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Confederation of Real Estate Developers' Associations of India, CREDAI, Economically Weaker Section, housing policy, LIG, LMIG, Lower income group, lower middle income group, Middle income group, MIG, reservation for EWS, Residential units
