The Hindu Business Line : CMDA to push housing projects under town planning scheme

(From left) Mr Vikram Kapur, Member Secretary, Chennai Metropolitan Development Authority; Mr M.R. Jaishankar, Chairman, Estate South 2009 and Managing Director, Brigade Group; Mr R. Sellamuthu, Additional Chief Secretary, Development Commissioner, Planning and Development Department, Government of Tamil Nadu; and Mr Kumar Gera, Chairman, CREDAI and Chairman and Managing Director, Gera Developments Pvt Ltd, at the inaugural session of Estate South 2009 organised by the CII in Chennai on Friday. —

Our Bureau

Chennai, Nov. 13

The Chennai Metropolitan Development Authority plans to encourage large-scale housing projects through the town planning scheme, according to Mr Vikram Kapur, Member Secretary, CMDA.

Addressing the inaugural of Estate South 2009, a conference on the real estate scene in south India, Mr Kapur said the CMDA is looking at modelling projects along the lines of the town planning schemes in Ahmedabad and Pune. Large parcels of land with developed infrastructure would be made available to developers for joint development. This would help unlock the value of land.

The real estate developers need to look at their own processes to improve efficiency and address pricing and marketing strategies. Industries that have gone through a slow down first improve their own performance and come out stronger. Sops and other forms of Government support can, at best, be a short-term solution, he said.

On the demand of real estate developers to be allocated land at low cost for development, Mr Kapur said Government land was not available for housing in Tamil Nadu, particularly in Chennai. There is no need for land prices to be high as the CMDA has “zoned enormous land” for residential development. It “fails comprehension” why land cost should be high, he said.

The two-day conference organised by the Confederation of Indian Industry, is on the theme ‘The Way Ahead’. The conference looks at various issues affecting the industry as it comes out of a year of slow market conditions.

Mr Kumar Gera, Chairman, Confederation of Real Estate Developers’ Association of India, said the issue of high land cost and taxes are a key factor impacting the availability of affordable housing. The industry is also concerned about the proposed law to regulate developers, which would hold the developers accountable but would not address the other partners in the project, including the end-buyer, project transaction authorities or financial institutions, any one of whom could ‘frustrate the project.’

The industry is not against being regulated. It would support the law if it enabled transparency and accountability for all concerned.

The authorities should look at creating special residential zones along the lines of the special economic zones for industry. The residential zones should be supported through infrastructure and tax concessions. Nearly, a third of the price of built-up space was due to taxes, he said.

More Stories on : Real Estate & Construction | Urban Development | Tamil Nadu

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