Government announces 8 public-private affordable housing models

  • | Friday | 22nd September, 2017

MUMBAI: Minister of housing and urban affairs Hardeep Singh Puri on Thursday announced eight public-private partnership ( PPP models for affordable housing . The fourth model, annuity-cum-capital grant based affordable housing, is where builders can pay a share of project cost upfront. The ministry will also offer direct relationship ownership housing, where promoters will directly deal with buyers and recover cost. The first (DBT model) envisages private builders designing, building and transferring houses built on government land to public authorities. "Under the six government land-based PPP models, beneficiaries can avail central assistance of Rs 1 lakh to Rs 2.50 lakh per house, as provisioned under components of Pradhan Mantri Awas Yojna,'' said Puri.The minister urged developers to enter the affordable housing segment.

MUMBAI: Minister of housing and urban affairs Hardeep Singh Puri on Thursday announced eight public-private partnership ( PPP models for affordable housing . Puri told a summit organized by National Real Estate Development Council (NAREDCO) here that the ministry has so far sanctioned 2.6 million affordable homes with an investment of Rs 1.40 lakh crore.The models include six for promoting affordable housing with private investment, using government land. The first (DBT model) envisages private builders designing, building and transferring houses built on government land to public authorities. Government land will be allocated based on least cost of construction. Payments to buildings will be made by the public authority based on progress of project as per agreed upon milestones and buyers will pay the government.Under the second model (mixed development cross-subsidised housing), government land will be allotted based on number of affordable homes to be built on the plot by builders. The tenements will be cross-subsidised from revenue from high-end housing or commercial development.The third (annuity-based subsidized housing) will entail builders to invest against deferred annuity payments by the government. Land allocation to builders will be based on unit cost of construction. The fourth model, annuity-cum-capital grant based affordable housing, is where builders can pay a share of project cost upfront. The ministry will also offer direct relationship ownership housing, where promoters will directly deal with buyers and recover cost. Allocation of land is based on unit cost of construction.The sixth model, direct relationship rental housing, is where recovery of cost by builders is through rental income from houses built on government land."Under the six government land-based PPP models, beneficiaries can avail central assistance of Rs 1 lakh to Rs 2.50 lakh per house, as provisioned under components of Pradhan Mantri Awas Yojna,'' said Puri.The minister urged developers to enter the affordable housing segment.

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