Noida: A co-developer policy, the key component of the proposed rehabilitation package for stalled real estate projects, is likely to be announced by the state government next week. The policy, which aligns with the recommendations of an expert committee led by former Niti Aayog CEO Amitabh Kant, is likely to allow new companies to take over and complete stalled yet economically viable projects.Developers believe it will create a win-win situation for all stakeholders — while homebuyers will receive their flats and the authority will recover its dues, the government can earn revenue through stamp duties. The rehabilitation package is also set to introduce a rescheduling scheme to allow developers to settle dues in instalments and a zero period waiver of interest payments on land dues as well as penalties for projects hit by the pandemic and subsequent construction ban following a directive from the National Green Tribunal.The Noida and the Greater Noida authorities together have to recover around Rs 41,000 crore in dues that include penal interests imposed due to a default on the payment by developers. There are 191 real estate projects in Greater Noida, of which 62 have paid their dues, 36 are in embroiled in litigation in various courts and 93 are defaulters. In Noida, which has 118 projects, at least 28 realtors have paid their dues, 60 are in various courts and 29 are defaulters.The co-developer policy, realtors expect, will allow new promoters with satisfactory track records to come forward and invest in such projects. Nikhil Hawelia, managing director of Hawelia Builders, which is among the companies that have signed a memorandum with the state government in November 2022 for the completion and development of such stalled projects, said the group has submitted a proposal to the government for co-development as one of the resolutions for completing such projects.Unlike the Kant committees recommendation, where the original developer does not require the Authoritys permission to rope in a co-developer, the government is keen on the Authoritys role in authorising new promoters. The government is also thinking of applying this policy on a case-to-case basis so that new promoters do not complicate the situation. Initially, a few large-size stalled projects could be taken as pilot projects and after successful implementation of the same, more projects could be undertaken, he said.So far, builders have undertaken projects with other promoters only under contractual or debt management models without taking any financial, legal and authority liabilities and responsibility on them.

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