News Services

UP government’s new township policy to help the real estate sector


Uttar Pradesh government’s announcement on incentives for private developers building townships in the state is expected to boost the sector and help in organised developments, according to real estate developers.

Under the New Township Policy 2023, the developers will receive relief in the form of a reduction in the conversion fee for land use.

“The new Township Policy 2023 will attract investments and empower private developers to contribute to the development of the state. The new policy also opens new avenues for integrated township projects by allowing FDI,” said Amit Modi, Director at County Group.

Under the new policy, there is a proposal to set up a green channel through which all approvals and objections will be issued via a Single Window System.

“With the provision for land swaps, this policy further optimises land usage within the townships and the decision to provide 25 and 50% rebate on the conversion fee is also helpful,” said Modi.

For townships developed in areas with a population of more than five lakhs and less than 10 lakhs, there will be a 25% rebate in the conversion fee for land use, while for areas with a population of less than five lakhs, the reduction will go up to 50%.”With tier 2 and tier 3 cities undergoing a rapid transformation, this move by the state government is the need of the hour. There is a huge unmet demand for affordable housing in the country, and this “New Township Policy” will catalyze the process and help the government realize its vision of housing for all,” said Mohit Goel, MD, Omaxe Ltd.The introduction of a green channel for project approvals is welcomed by developers who often face delays.

“Streamlining the approval process will save us valuable time and resources, allowing us to expedite project timelines and deliver homes faster. The reduction in conversion fees is another well-intentioned move, and it will enable developers to come up with sustainable, affordable, and modern townships,” said Yash Miglani, MD, Migsun Group.

Developers said that it is a positive move from the UP Government to promote a structured and well-planned development of the tier 2 and tier 3 cities.

“However, the rebate of 25% and 50% in conversion charges may not be sufficient for private developers to consider such a move as we feel that the demand for group housing projects may not be high enough for the real estate developers to invest in such a move,” said Manoj Gaur President CREDAI NCR and CMD Gaurs Group.


Source link