CM announces launch of new Integrated Licencing Policy

CHANDIGARH, OCT 23

Haryana Chief Minister Manohar Lal announced the launch of the New Integrated Licencing Policy 2015 for the development of Hyper and High Potential Urban Complexes of Gurgaon-Manesar, Faridabad-Ballabhgarh, Sohna, Sonepat-Kundli, Panipat and Panchkula-Kalka-Pinjore. Calling it a game changer the Chief Minister stated that the policy finds the proper balance between the aspirations of the farmers/landowners, the buyer-consumers of residential plots or flats, the real estate developers and the Government to make a win-win situation for all.

He said that the new policy titled NILP 2015 brings in the internationally acclaimed models of Transferable Development Rights (TDR) coupled with unique provisions which obviate the need for Government to resort to compulsory acquisition of land. The policy enables the small landowners to voluntarily monetise their land by participating in the entire process of licencing, real estate development and marketing and sale of their Transferable Development Rights. He emphasized that in the earlier policies of the Department of Town & Country Planning Department, only a builder owning more than 100 acres of land was considered for developing a plotted colony in these areas. He said that with the sharp rise of land value in the urbanizable limits of towns like Gurgaon and Faridabad, while on the one hand the builders could not aggregate 100 acres of land, the small farmer – landowner also felt cheated since he had to wait either for the builders to buy his land at less than the market value or face the ignominy of compulsory acquisition by the Government.Citing an example, he added that as a result of the earlier opaque policies of the Government, about 10000 acres of land located in the urbanisable portion inGurgaon was lying unutilized with large gaps in infrastructure development, a disillusioned Real Estate sector, buyers of properties feeling defrauded because of lack of facilities and the government agencies devoid of adequate resources and land for laying down the right infrastructure.

Chief Minister said that while bringing down the area norms for establishing a colony from 100 acres to 25 acres, the policy provides for a global FAR between 1.0 to 1.25 for colony size of 25 acres to 50 acres and above 50 acres respectively. These builders can respectively raise their FAR utilisation to 1.25 ( for colonies upto 50 acres) and 1.50 ( for colonies more than 50 acres) by purchasing the TDRs of the land owners. The land owners will have complete freedom in selling the FAR to any builder in a large planning unit. Each farmer will be eligible to sell his TDR certificate equivalent to 1 FAR for his land(e.g. about 4047 sq. meters or 43264 sq. feet for each acre of land) at market rates. In order to ensure optimum utilization of very high priced land in these urban areas the applicable density is also being increased to 250 PPA.

The Chief Minister informed that for the first time the concept of Transferable Development Rights (TDR) is being introduced comprehensively in Haryana. This concept will give an alternative to the farmers/individual land owners having land less than 25 acres to obtain TDR certificate from the Department. This will help such farmers/owners to monetisetheir land holdings at current market price in residential sectors and for the sites/areas designated for External Development Works like sector roads, colleges, hospitals, fire station, open spaces, green belt etc.It was pointed out that this concept has recently been introduced for procuring the land falling within the alignment of internal 18/24 metres wide roads to enable connectivity with the wide sector roads and in terms of infrastructure provision to specific colonies located within the sectors.

He further said that the objective of achieving‘Housing for All’ by 2022 is not being left at the whims and fancies of private developers. The policy proposes that 12% of the land of the colony for developing affordable housing for EWS, LIG and middle income groups will be given free of cost to the Government. This will also abolish the opaqueness associated with the allotment of NPNL category plots by the builders.The Government will then develop EWS/LIG/MIG houses through the Housing Board and other State Agencies. The policy proposes to take 10% land of the colony free of cost for construction of such facilities like schools, dispensaries, religious buildings, community centers facilities etc. based on requirement of each residential sector.

Mr Manohar Lal further stated that the policy intent is to further incentivise the development of commercial belts/sectors designated in the development plans. He said that presently only very limited area in commercial belts to the extent of 50% in GMUC, 30% in Sohna and Faridabad and 10% in rest of the State is permissible for commercial licencing. The rest of the area (50%, 70% or 90% respectively) was supposed to be compulsorily acquired by the Government for development of Commercial properties. The new Policy opens up this entire commercial segment for development by increasing the FAR to 3.0 from existing 1.50/1.75 and taking back 40% of the licenced land free of cost to be disposed it by Department/HUDA. This would enable the farmer-landowners to get a fair market value for their land falling in the Commercial Zone while enabling the Government to develop 40% of the area free of cost and without compulsory acquisition in a win –win situation.

The Chief Minister pointed out that this policy is likely to have a huge impact in creating housing units, revenue for the State Exchequer and financial resources for development of External Infrastructure in the coming 5 to 7 years. Conservative estimates with respect to Gurgaon-Manesar Urban Complex indicate that the State will be able to create affordable housing for 2 lakh families from the land received free of cost from the colonizers in lieu of NPNL/EWS and TDR in residential sectors. It is likely to generate approximately Rs. 24000 crore of revenue for the State in terms of licence fee, conversion charges and infrastructure development charges. Similarly, this policy has a potential to augment the resources of HUDA to the tune of Rs. 20000 crores for investment in External Infrastructure. Further, the policy is likely to help in aggregating approximately 1500 acres to 2000 acres of land in the form of green belt/open spaces for development of green lungs in GMUC.

While Concluding, the Chief Minister emphasized  that the policy will not only kick startthe process of urban development in these important urban centres but will benefit the farmers in monetising their land while helping the State in aggregating the land for external infrastructure, for affordable housing and for community facilities. The Policy will also benefit the State in acquiring licenced commercial spaces for enhancing the revenue of the State and will also help in augmenting resources of HUDA to take up development of higher level of infrastructure.