State-Run NBCC to Build Affordable Homes
While plans are underway to get on-board the National Building Construction Corporation (NBCC) to efficiently manage seized properties of defaulters, the state-run firm has also unveiled its plan to lend a helping hand to the government in meeting its housing-for-all-by-2022 target. While estimates vary, the Centre will have to build about 18 million housing units in urban India alone to provide to a roof over the heads of the low and middle-income group categories that that year.
Media reports earlier indicated that amendments might be made in the law to empower the agency, the only land agency for Central undertakings, to rent seized properties to earn revenues.
Now, media reports say that the NBCC plans to build over one lakh affordable housing units across major states of the country in the next five years. The total cost of carrying out the project is pegged at Rs 10,000 crore. The company might start work on such project in this year itself.
Where is the land?
The state-run construction company will make use of government land that is in its possession to build these homes. Official estimates show the construction firm has a land bank of 200 acre. NBCC-owned land parcels are spread across cities such as Alwar & Jaipur (both in Rajasthan), Bhubaneswar (Odisha) Coimbatore (Tamil Nadu), Faridabad (Haryana), Kochi (Kerala), Kolkata (West Bengal), and Patna (Bihar).
The agency owns land in prime part of these cities.
It is also negotiating with public sector units ─ at least 25 of them, say media reports ─ to utilise land lying idle with them. If the talks bear fruit, affordable projects could be launched by the NBCC in cities such as Delhi, Gurgaon, Hyderabad, Nainital, Pune and Raigadh.
What would be the pricing?
The NBCC built units would be sold in the price range of Rs 10 lakh to Rs 60 lakh. While the company expects to earn 10 per cent profit on sale of these units, it will also develop commercial establishments in close proximity of such units to make them monetarily more profitable. All project stakeholders will share the cost and profit of the project.