Bhubaneswar: Three affordable housing projects of the city planned at Satya Nagar, Subuddhipur and Gadakana run into trouble during execution with the selected developers backing out from the projects forcing the development authority to initiate the tender process once again.

The Bhubaneswar Development Authority had in 2016 decided to construct affordable housing projects for the urban poor under the state government's Housing for All scheme. The projects were decided to be executed in public-private partnership mode, where the land will be of the government while the developer will spend money for the project.

Six such projects were planned simultaneously in various parts of the city, two at Chandrasekharpur, one each at Gadakana, Satya Nagar, Subuddhipur and at Nakhara. However, soon after the tender process for all the projects except Nakhara got completed, the developers encountered several problems.

Banks have asked the developers to mortgage the land or the project site against the loan. However, since it belongs to the development body, the developers cannot mortgage the land.

They also had problems with certain provisions of the Odisha Real Estate Regulation and Development Rules, 2017, since it did not have any provision for such public-private partnership projects. Sources said the authorities, too, failed to address the issues.

"We did discuss on the issues and approached the finance department for creation of mortgage, so that it could be put to get loan. But, the developers said they were incurring losses due to the delay. We have initiated the tender once again," said an authority official. The three projects will collectively create a stock of about 5,000 houses for the urban poor. All the projects were planned to be executed under the Model IV of the scheme.

Besides, the slum dwellers are opposing the projects.