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Regular-article-logo Tuesday, 29 April 2025

Housing plan for poor runs into trouble

The urban development authority's affordable housing projects at Chandraskeharpur and Satya Nagar has run into further trouble with developers roped in for the projects citing several different problems in their execution.

Our Correspondent Published 11.05.18, 12:00 AM

Bhubaneswar: The urban development authority's affordable housing projects at Chandraskeharpur and Satya Nagar has run into further trouble with developers roped in for the projects citing several different problems in their execution.

Many have already pproached the housing and urban development department to seek its intervention in the matter.

They claimed that they were facing difficulties in getting loans and also with certain provisions of the Odisha Real Estate Regulation and Development Rules, 2017 (Rera).

In 2016, the development authority decided to execute the affordable housing project at Satya Nagar and Chandrasekharpur in public-private-partnership mode under the state government's Housing for All scheme. The developers will build the houses over 65 per cent of the land and use the rest to incur the cost it had invested in the project.

However, the developers claimed that they were unable to get loans as banks were asking them to mortgage the land or the project site while giving the money.

However, as the belonged to the development authority, those cannot be mortgaged.

"The banks want the developer to mortgage their share of the area as security," said an official of a firm that has tied up with government.

"However, a clause in the agreement states that the land would only be handed over to us after completion of the project," he said,

Besides, implementing Rera was facing others hurdles as it does not cover public-private-partnerships as the role of the partner is not clear in it, said the developer.

"We have requested the government to clarify this matter and include the role of the private partner," said the official.

The development authority is executing the Nilamadhav Awas Yojna at Chandrasekharpur over 20 acres and the Santi Nagar Awas Yojna at Satya Nagar over 10 acres under the Housing for All scheme. The complexes will create a stock of 6,700 homes.

A senior housing and urban development official said they received the requests from the developers and were in talks with experts to resolve the issues.

"We will talk to our transaction advisers and come up with a solution. We will think of amending the tender paper if needed," said the official.

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