State drops key provision to woo private developers

In another concession,the maximum permissible number of companies in a consortium that can apply for a project has been raised from five to seven. The companies must have signed a memorandum of understanding among themselves,and the leading firm must have a minimum financial stake of 26 per cent in the consortium.

The state government has also extended the time limit for the completion of a township from five to 10 years after the signing of the “development agreement” with state government.

Also,the developer will be free to use 27.5 per cent area for any purpose to make the township attractive,as against 15 per cent allowed earlier.

To make this additional area available,the government has reduced the percentage of green area/open area,park and play grounds from 20 to 15 per cent,and the area for commercial use from 5 to 2.5 per cent.

In the old policy,the government had specified that 5 per cent land in the township must be reserved for institutional use,10 per cent for industrial,8 per cent for public utilities and services,and 2 per cent for entertainment. This made a total of 25 per cent.

In the revised policy,the government has reduced this to 20 per cent and no separate percentage of different land use have been specified.

“These changes have been made to remove the hardships because of which developers are not coming forward in UP,” said Arun Kumar Sinha,Principal Secretary of Housing and Urban Planning.

The state government had invited offers for developing townships on September 25,2009. When satisfactory response was not received from developers,a pre-bid conference was organised in November,in which the firms suggested certain changes in the policy.

After extending the deadline four times,the government has received seven offers. In a meeting scheduled on January 27,qualification of these firms/consortiums would be checked. Offers will be invited from those which qualify according to norms.