KOLKATA: In a move aimed at boosting real estate, the Mamata Banerjee government wants developers to form a consortium and build private townships spread over 50 acres or more, provided 25% of the land is reserved for economically weaker sections and another 25% for non-residential activities.
The move will help landowners bypass the state land ceiling that is currently capped at 24 acres for individuals.
In the new arrangement, a developer with land above the ceiling can form a consortium with another developer having land within the ceiling.For example, a developer having 40 acres can escape the provisions of the land ceiling Act if he joins hands with another who has 7 acres because the combined land parcel of 47 acres would be within their combined land ceiling of 48 acres. By the same logic, the combined land ceiling would go up if more members join the consortium.
The purpose of the move is to make private parties disclose land in their possession that they have not so far declared, fearing that the parcel above the ceiling of 24 acres will be ves ted with the government and returned to the landowner on long-term lease as has been the case with industry .
“During the Bengal Global Business Summit we concep tualised this policy regarding private township. Now we wo uld seek suggestions on this from Credai,” state finance and industries minister Amit Mitra said at a realty conclave organised by the CII.
Mitra also proposed a series of measures for the real estate industry , including 10% extra floor area ratio (FAR) for green building, 10% extra FAR for real estate within 500 met res of upcoming metro stations and modified circle rate regulations.
The president of Credai Bengal, Sushil Mohta, said the new state policy on private township has been well received by the industry . As per the proposal, there is no upper limit of combined land holding and one can develop even 200300 acres if there is demand. “There are some applications for this,” he said.
Sources in the industry said the new policy for private township could unlock a huge quantity of land. “There are over 10,000 acres that have not been disclosed by the owners due to the land ceiling Act,” sources in the know said.
It may be noted that industry is vocal about the land ceiling Act, which does not permit it to hold on to large tracts of land. Earlier this year, Mamata Banerjee had proposed that 2 or 3 or more companies might join hands to hold on to larger tracts.
Elaborating on the 10% additional FAR for green buildings, Mitra suggested that the green-building guidelines of Teri can be taken as benchmark for the purpose. Mitra also urged the real estate players to invest in theme townships conceived by the government.
The government is planning theme townships in Bolepur, Howrah, Siliguri, Asansol, Baruipur and Kalyani.
Meanwhile, Credai Bengal vice-president N Belani said Credai may join hands with real estate consultant JLL to arrange roadshows in Bangalore and Pune to promote IT and ITes industry in the state.
Courtesy Times Of India