Developers Laud UP Govt's New Township Policy For Small Cities

Noida: Real estate developers in western Uttar Pradesh have welcomed the state government's new township policy for small cities but hoped for higher rebates in land conversion charges as demand for group housing in tier 2-3 areas may not be high enough for big investments.
The Uttar Pradesh government earlier this week announced the new Township Policy 2023, in which a 25 per cent discount will be given on the land use conversion fee for the construction of townships in cities with a population between 5 and 10 lakh.
It also announced up to 50 per cent discount on the land use conversion fee on the construction of townships in cities with a population of less than five lakh.
The government said that foreign direct investment (FDI) will also be allowed for private developers under the new Township Policy in Uttar Pradesh. Manoj Gaur, the NCR chapter president of the realtors' association CREDAI, said, "It is indeed a positive move from the UP government to promote a structured and well-planned development of tier two and tier three cities".
"However, the rebate of 25 per cent and 50 per cent 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 Gaur, also the CMD of Gaurs Group.
Amit Modi, Director of the County Group, felt the new Township Policy 2023 is a well-thought-out initiative, which will attract investments and empower private developers to contribute meaningfully to the development of the state.
"The new policy also opens new avenues for integrated township projects by allowing FDI. Setting up a green channel through which all approvals and objections will be issued via a single window system is another industry-friendly move.
"With the provision for land swaps, this policy further optimises land usage within the townships. The decision to provide 25 and 50 per cent rebate on the conversion fee is another laudable feature," he said.
Mayank Chauhan, Director of Lotus Greens sports city in Noida, believed it to be a good decision.
"We should rope in reputed corporates for development in the state. With the announcement by the CM, various pockets in the state can be developed as smart cities with good infrastructure," he said.
Mohit Goel, MD of Omaxe Ltd, noted that with tier two and tier three cities undergoing a rapid transformation, the move is the need of the hour.
He said there is a huge unmet demand for affordable housing in the country, and the new policy will catalyse the process and help the government realise its vision of housing for all.
"Affordable housing in the country, and this new policy will catalyse the process and help the government realize its vision of housing for all," Goel added.
Migsun Group MD Yash Miglani said the introduction of a green channel for project approvals is a highlight of this move.
"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," he said. —PTI