India's most populous state, Uttar Pradesh, had an estimated shortage of 2.35 million houses as of April 2007, which has grown since. The state’s housing commissioner, M VS Rami Reddy, talked to Virendra Singh Rawat about the UP Housing Board's activities. Edited excerpts:
What is the current land bank of the Housing Board and future plans?
Our land bank was 250 hectares in April 2010, which has swelled to about 1,500 ha, spanning all major towns of UP, against the target of 900 ha. This year, we are planning to acquire 1,200 ha more in 16 districts. By the end of this financial year, about 1,000 ha would be under construction, while another 1,500 ha would be virgin land with us.
Of late, the land acquisition issue in UP and elsewhere has hogged media space. Does the Board also face such challenges?
We have not faced any problem. We have a clear policy of holding talks and negotiating with land owners to offer good rates. Besides, the Board uses the land for housing purposes and there is no bulk sale to any private builder.
How many dwelling units would be up for sale in the near future?
We have some mega projects underway in Lucknow and Meerut districts, besides projects in other towns. In the next six months, almost 7,500 dwellings units would be available for sale. The Lucknow project is spread over 616 ha, of which we have already acquired 512 ha.
This township, with 2,000 housing units comprising row houses, flats and vacant plots, is being readied keeping in mind future amenities, such as connecting to the proposed metro corridor. Another Lucknow project would give 1,000 units. The Meerut project is coming up on Hapur Road, spread over 200 ha.
Which segments of society remain your focus?
We basically cater to the low, middle and upper middle income groups. Our Low Income Group and Middle Income Group housing units typically carry price tags of Rs 5-10 lakh and Rs 10-30 lakh, respectively.
The Board also offers some properties for the High Income Group. Since land prices are high and rising, we are now focusing on providing affordable and self-contained housing units in multi-storied apartments.
A common complaint against government housing agencies is the quality of construction.
We have mandated third-party inspection of housing units by Indian Institute of Technology and other institutions of repute.
Interest rates have been rising, affecting the realty sector. How has the Board fared in this context?
The demand for our housing units has only been rising. Recently, we received 30,000 applications for about 330 units in Lucknow. Besides, the confidence of people in our projects is very strong because we deliver what we promise in terms of quality of construction and area. The ownership title to the buyer is above doubt.
A public private partnership (PPP) model is the latest buzzword in development projects, including housing. Your view?
Alhough our bylaws do not restrain the Board from alliances with the private sector, we have not yet discussed the PPP model.
Besides, we are flush with funds and do not need private partners, either for funds or expertise. However, private builders do buy our plots for group housing.
