1. Current Policy & its Implementation Status
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1 Integrated Township Policy (License Model-Revised) Presentation by Housing & Urban Planning Department Government of Uttar Pradesh 20 th December, 2013
2 Presentation Structure 1. Current Policy & its Implementation Status 2. Need for Revision of Policy 3. Eligibility Criteria for Developers 4. Procedure for Grant of License 5. Procedure for Land Assembly 6. Planning Norms & Approval of DPR 7. Development Works & Performance Guarantee 8. Obligations of Developers & Govt. Agencies 9. Applicability of Policy
3 1. Current Policy & its Implementation Status Integrated Township Policy was announced in 2005 to promote development of self-contained townships through private investment that would facilitate affordable housing & create conducive environment for investors Licenses issued to 30 developers (DAs-26 & UPHDB-4) Total license area approved Acres Land assembled by developers Acres Work under progress in 20 Integrated Townships Ghaziabad, Meerut, Agra, Saharanpur, Lucknow, Kanpur and Mathura-Vrindavan at
4 Current Policy & its Implementation Status..contd. Status of plots/houses developed/constructed: Category Target No. of units (plots/houses) Completed Under Progress Allotted EWS LIG Ors Total Total investment incurred till date-rs Crore Source: Awas Bandhu
5 2. Need for Revision of Policy Policy amended eight times between ; multiplicity of GOs has given rise to confusion Registration & licensing has been stalled consequent to insertion of a new clause in policy i.e., selection of developers through competitive bidding process Feedback received from stakeholders call removal of difficulties and simplification of procedures for Abolition of Hi-tech Township Policy in January 2010 also makes it necessary to bridge resultant gap
6 3. Eligibility Criteria for Developers Registered Registered Existing Provision Company, Ownership/ Partnership Firm, Sole Proprietor & Consortium of Companies eligible for registration Consortium to be formed by registered companies only Consortium MoU shall be registered in district Sub-Registrar office Revised Provision Registration of private developers abolished Individual, Company or Association, Body of Individuals wher incorporated or not, owning land or assembling or agreeing to own or assemble, wher by purchase or orwise, land for development, are eligible for license under revised policy
7 Eligibility Criteria for Developers..Contd. Developers may form Consortium with no upper limit for number of members Consortium may also enter into Joint Venture Agreement with farmers Net worth & technical capability of a Consortium shall be computed in proportion to equity share of Consortium members but, net worth of a member as individual entity shall not be taken into account Consortium members shall execute a registered MoU on prescribed format in office of district Sub-Registrar The minimum equity share, turn over & net worth of Lead Member of Consortium shall be 26%
8 VC/Housing Consortium Commissioner may permit change in Consortium members (except lead member) subject to condition that minimum financial & technical Consortium shall not be affected negatively capability Board may permit change of lead member on completion of 1 st phase of project i.e., development works & or social In obligations subject to condition that new lead member fulfills minimum financial & technical capability criteria case of any Eligibility Criteria for Developers..Contd. change in Consortium members, amended MoU shall be executed & submitted to Authority A Company may become member of more than one Consortium subject to condition that its financial capability shall be counted in proportion to its equity share in a particular Consortium against its total turnover/net worth of an
9 Eligibility Criteria for Developers..Contd. Based on financial & technical capability, township area for different categories of developers shall be as follows: Developer Category Existing Provision Average Annual Networth last 3 years (Rs. Crore) Township Area (Acres) Revised Provision Average Annual Networth last 3 years (Rs. Crore) A Township Area (Acres) Above 1000 B C D E F
10 Minimum 30% turnover shall be from real estate & remaining may be from core infrastructure development Last year networth should be minimum 20% of average annual turn-over certified by a Chartered Accountant Explanation: Net worth- as defined u/s 29A of The Indian Companies Act Real Estate includes-township, Housing Colony, City Centre/ District Centre, Industrial township/estate, Logistic Park, Commercial Complex, IT Park, etc. Core Railways, Infrastructure includes-telecom, Expressways/National/State Power, Highways, Port, Metro Airport, Rail, Industrial Park, Logistic Park, Large Irrigation Project, Water Supply & Sewerage Projects Eligibility Criteria for Developers..Contd.
11 4. Procedure for Grant of License Existing Provision Developer should have minimum 25% land in its ownership Selection of Developer through Bidding Process Competitive HPC to decide number and location of licenses and maximum area of a license Revised Provision Developers owning minimum 25% land of proposed license area may apply for license on prescribed format to DA/UPHB License shall be issued by VC/Housing Commissioner within 60 days of submission of application License shall be valid for 2 years & renewable twice for one year each by VC/Housing Commissioner on payment of 25% of license fee
12 Procedure for Grant of License.Contd. Rates of License Fee for different categories of towns: Category of Town Municipal Corporation Towns Existing Provision Rs. 40,000 per Acre Revised Provision Rs Lac per Acre Or Towns Rs. 20,000 per Acre Rs. 50,000 per Acre Note: License fee shall be revised annually on basis of cost index
13 Procedure for Grant of License.Contd. Developer shall obtain separate license for every township & may apply for more than one license in more than one development area subject to financial capability License area may be reduced on request of developer & change in its boundary may also be permitted by VC/Housing Commissioner License may be cancelled by VC/Housing Commissioner after giving one month s notice if DPR is not submitted within validity period of license
14 Procedure for Grant of License.Contd. License shall be issued on recommendation of following Committee: Secretary/Additional Housing Commissioner Chief Engineer/Senior most Engineer, DA/UPHDB Chairman Member Finance Controller/Senior Finance Officer, DA/UPHDB CTCP/representative most Member Member District Magistrate representative UPHDB representative Chief Town Planner/Senior most Town Planner, DA/UPHDB Member Member Member-Secretary
15 One-time extension in township area may be permitted subject to following conditions:- Procedure for Grant of License.Contd. Developer should fulfill financial extended area & technical capability for Maximum extension shall be equal to 100% of originally approved area Developer should have assembled minimum 60% land of originally approved area Area proposed for extension should be contiguous to originally approved area All development works including extended area shall be completed within 7 years from date of grant of license
16 5. Procedure for Land Assembly Existing Provision Developer shall purchase 75% land directly & Govt. Agency assembly/ will facilitate purchase remaining 25% land of Developer Revised Provision shall himself & comply assemble with land Govt. policies (including R&R Policy) where land is acquired under provisions of Land Acquisition Act, 1894 Developer shall pay stamp duty on prevailing rates purchased by him for land Developer may execute joint venture agreement with farmers for assembly of land through land pooling
17 Procedure for Land Assembly.contd. Exemption u/s-154 (2) of ZALR Act, 1950 shall be granted by Commissioner as per Notification No. 180/ One-1(43)/ )/1994, dated on recommendation of VC/Housing Commissioner Gram Samaj land shall be resumed in accordance with G.O. No. 1678/F-1/ (10)/ )/ Ra1, dated and of Revenue Dept., GoUP Urban Ceiling surplus land & SC/ST land falling within township may be made available to developer as per applicable rules DA/UPHB shall not make land acquisition proposals where license has been granted and no license application shall be entertained for land notified by DA/UBHB for ir own schemes
18 Procedure for Land Assembly.contd. Conversion of land use shall be permitted except land reserved in Master Plan for roads, green areas, city level facilities such as Bus Terminal, STP, Fire Station, ESS, etc. Compensatory FAR shall be permissible to provided land under such facilities is owned by him developer Developer shall pay conversion charges at prevailing rates where conversion of land use is permitted No conversion of land use where Master Plan is not applicable Where license is granted prior to notification of Master Plan, such land shall be earmarked as residential and no conversion charges shall be payable by developer
19 Sl. No. 6. Planning Norms & Approval of DPR Land Use Category 6.1 Planning Norms Percentage of Area Existing Revised 1. Residential Maximum Mixed - Maximum Commercial & Offices 6-8 Maximum 8 4. Industrial (Pollution Free), Public & Semi- public Facilities 8-10 Maximum Entertainment Traffic & Transport, Green Cover/ Parks, Open Spaces, & Water Bodies Minimum 30 Mixed use percentage may be reduced provided that residential, commercial & mixed use combined shall not exceed 60% Density, Ground Coverage & FAR norms shall be as per applicable Building Bye-laws
20 Planning Norms & Approval of DPR..contd. 6.2 Norms for development/construction of Plots & Houses: Existing Provision Developer is free to decide proportion of plots and houses/ Group Housing in his township Revised Provision Plotted Development maximum 50% Minimum house construction 50% Group Housing (% of Residential use) In Metros & NCR - 50% In 2-10 lac towns - 25% Or towns - no restriction
21 Planning Norms & Approval of DPR..contd. 6.3 DPR Approval & Development Agreement Existing Provision Approval of Board DPR by within 30 days on recommendation of a Committee constituted under Chairmanship of VC/ Housing Commissioner DPR Revised Provision may be submitted after purchase of 50% land including land assembled through Joint Venture Agreement with farmers Approval of DPR within 60 days by Authority recommendation Board of Committee constituted for of License on grant Development Agreement to be signed between Authority & developer at time of approval of DPR
22 Planning Norms & Approval of DPR..contd. 6.4 Development Agreement & Project Period Area of Township (Acres) No. of DAs/ Lay-out Plans Project Period (Years) Upto > > > > And 2 for every subsequent 500 acres 3 years for every subsequent 500 acres Project period shall be counted from date of DPR approval Layout Plan approval by VC/Housing Commissioner Minimum 60% land assembly is compulsory for each DA Project period extension by Board on case-to-case basis
23 7. Development Works & Performance Guarantee Existing Provision Revised Provision Developer to carry out internal & external development himself Developer shall mortgage 25% of saleable land, 20% shall be released on completion of all development works & after ensuring 120% recharging of ground water extracted, 5% to be retained Guarantee as Performance maintenance of town against Developer shall mortgage 25% owned saleable land of residential, commercial & mixed use (except EWS/LIG housing) in every development agreement Developer may carry out development of mortgaged land but, shall not sell or create third party interest on such land Developer shall pay proportionate charges for connectivity with trunk services like road, drainage, sewerage, water supply, etc.
24 8. Obligations of Developers & Govt. Agencies 8.1 Obligations of Developers (a) EWS & LIG Housing & Community Facilities Existing Provision Developer shall construct 10% houses/plots for EWS and anor 10% for LIG as per norms and cost prescribed by Authority ceiling Revised Provision Developer shall construct 10% of total housing units for EWS and 10% for LIG in accordance with revised EWS & LIG Housing policy of Govt. Land for Police Station, Fire Station & Electric Sub-StationStation shall be made available by developer to respective Govt. Agencies as per applicable policies Land for Post-Office, Telephone Exchange, Primary School Primary Health Centre shall be made available by developer as per costing & allotment policy of Govt. &
25 Obligations of Developers..Contd (b) Development of Village Abadis Existing Provision Developer basic free-of- cost shall amenities to Village provide Abadis falling within project area Basic Revised Provision amenities to village abadis falling within or outside township area whose land has been utilized for project, shall be provided as per Govt. policy dated and or GOs issued in this regard from time to time Developer shall deposit requisite amount with Authority development works shall be carried out by Authority &
26 Obligations of Developers..Contd (c) City Development Charge Existing Provision Revised Provision (Rs. Per Sq.m.).) Rs. 3.0 Lac Acre sqm) per (Rs. 74 per in Municipal Corporation towns Rs. 1.0 Lac per Acre (Rs. 25 per sqm) in or towns Ghaziabad 500 Agra, Kanpur, Meerut & Lucknow 400 Allahabad, Bulandshahar, Hapur-Pilkhua, Muzaffar Baghpat, Gorakhpur, Nagar, Khurja Bareilly, Mathura & Shajahanpur Aligarh, Moradabad, Varanasi, Firozabad, Jhansi, 300 Urai, Unnao, Banda, Rampur, Raebareli, Azamgarh & Faizabad 200
27 City Development Charge Contd. CDC shall be payable after deducting Master/Zonal Plan roads, parks & open spaces/green Belt area from total project area In case of Metro Rail Project, Authority may divide city into two zones & prescribe higher rates for Metro influence zone CDC shall be payable one-time at time of approval of DPR however, Development Authority may give option to deposit in six monthly 4 instalments with 12% annual rate of interest, default in timely payment will attract compound 15% CDC Shall be revised annually on basis of Cost Index
28 Obligations of Developers..Contd (d) Maintenance of Township Existing Provision Joint Venture Agreement shall be executed Developer between and Govt. Agency Maintenance charges and annual user charges shall be deposited in an Escrow Account Developer Revised Provision shall maintain services of township till handing over to ULB Developer shall be entitled to recover maintenance expenditure from allottees Maintenance expenditure deposited in an Escrow Account shall be DA/UPHB to supervise maintenance works Escrow Account shall be transferred to ULB at time of handing over of township for maintenance
29 Obligations of Developers..Contd (e) Or obligations of Developer Developer shall secure all statutory clearances himself Registration of properties compulsory before handing over possession of developed properties to allottees Developer/allottees charges as per shall pay applicable laws stamp duty & free-hold Developer shall follow Disaster Management for barrier-free environment for physically Codes, norms physically challenged, Fire- safety, Rain Water Harvesting, pollution control, maintenance of green cover & conservation of energy in planning, development & maintenance of township Developer shall provide requisite fire equipment as per fire norms to Fire Authority at his own cost Environmental clearance commencement of compulsory development works prior to
30 Obligations of Developers & Govt. Agencies..Contd 8.2 Obligations of Govt. Agencies Facilitate developers in land assembly & regulate development Ensure inclusive development and compliance of social obligations by developer Ensure time-bound approvals/clearances for licensing & DPR Control illegal development within & around license area Monitor implementation of projects as per time-lines Constitute a Committee under Chairmanship of Principal Secretary, Housing & Urban Planning with members from Tax & Registration, Revenue, Urban Development, Housing Commissioner, CTCP & VC of respective DA for removal of difficulties encountered in implementation of policy
31 9. Applicability of Policy It extends to whole of UP except areas notified under IDAs & EIDAs Registered obtained developers license or under whose license previous is not policy valid who or haven't DPRs approved, will have to obtain fresh license under revised policy Developers selected under Hi-tech Township Policy whose DPRs haven t been approved, will apply for license under this Policy Any amendment in DPRs approved under previous policy shall be governed by provisions of same policy DPRs/lay Township outs policies approved under shall be implemented previous as not Hi-tech/Integrated per ir provisions however, developers may avail benefits of revised policy on payment of requisite license fee & CDC
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