Relaxation in the State Building Rules

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The state had issued GO.No 245, dated 30 June 2012, offering relaxations and incentives to the builders. This new GO consists of relaxations of the several provisions mentioned in it’s earlier order, GO No.45.

As per the previous GO. No. 45, builders have to provide 20% of the the total built-up area in private layouts for housing to economically weaker sections (EWS) and lower income groups (LIG). After this GO was passed, many builders expressed objection and as an reactionary step they halted almost all the big housing projects in the state from the past 1 ½ year which caused huge loses to the exchequer and finally made the state to make a move on the order.

Reasons apart, let us see the provisions made in the new GO (GO. No 254):

The 20% quota for EWG/LIG housing units has been reduced to 10% with 5% each to EWG and LIG. The builders can follow that amendment or can also choose 25% of the total number of units (12.5 per cent each to EWS/LIG). This is applicable to all the housing projects in more than area of 3,000 sq metres and up to 5 acres land (plot size).

The minimum plot size for the EWS/LIG units has increased from one acre to five acres (2.023 hectares), which is encouraging for the builders who were demanding for minimum one hectare plot size.

Builders and developers will be exempted from the payment of 10% of the total city infrastructure impact fee on the main projects towards EWS/LIG quota.

Builders can also use 10% of total land or the area equivalent to the EWS and housing for any purpose other than the residential in the main project site. All the above mentioned things are applicable only to the projects which provide the mentioned area to EWS/LIG units.

As per the requests made by the builder’s lobby, they can construct the EWS/LIG housing within 10-km radius of main project site, or within 5-km aerial route boundary of the respective municipal corporation of Greater Hyderabad.

Another option was also given for the procurement of EWS/LIG units from the housing projects being developed by the AP Housing Board with the 10-km and 5-km radius rule applicable.

Also two or more builders can construct their EWS housing units at one place other than their main project sites. However, the occupancy certificates for the main projects will be released only after the completion of EWS units.

The builders have to pay ‘shelter fee’ per square meter of the EWS/LIG units

Source: DC

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