Vizag gets Rs 2,000cr housing programme

To invite bids from private parties in next one month

The Visakhapatham Urban Development Authority (Vuda) has proposed to take up a massive Rs 2,000-crore housing programme with private participation in the port city.

Vuda plans to invite bids from private developers for the proposed housing programme, which includes creation of satellite townships, in the next one month.

Speaking to Business Standard, D Varaprasad, vice-chairman of Vuda, said: "As part of the housing programme titled 'Sagaratheera Soudhalu', we have proposed to take up 10 mega, 20 medium and 20 minor housing projects consisting of 25,000 dwellings over the next two years. The state government has also agreed in-principle to start these projects."

According to Varaprasad, Vuda will provide about 650 acres of land for the project which will see the construction of 13,500 two-bedroom flats, 4,000 three-bedroom flats and 7,500 individual units across 13 locations.

"The main reason for taking up these projects is to shift the residential zone to the periphery of the Vizag city, and to put a check on the speculative real estate business," he said.

"Vuda has estimated that close to Rs 2,000 crore would be needed to complete these 50 projects over the next two years," he added.

"We want to involve private parties to complete these projects. While Vuda will provide the necessary land, the private parties should invest their money for the construction of houses. The investors can later recover their money by selling these houses with the help of Vuda," Varaprasad said.

"The financial transactions including sale of applications, payments, loan mobilisation and installments etc would be handled by the commercial banks. It is estimated that Vuda could benefit to the tune of Rs 300 crore from these projects," he added.

"We are going to organise a workshop with prominent builders, bankers, planners and engineering experts very shortly to discuss this mega project," he said.

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Brick and mortar of Vuda's plan

• Programme involves construction of 10 mega, 20 medium & 20 minor housing projects consisting of 25,000 dwellings over next two years
• Reason for taking up these projects is to shift residential zone to periphery of Vizag city, and to put a check on speculative real estate business
• Vuda to earn close to Rs 300 crore from these projects