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Affordable houses in Uttar Pradesh likely to cost Rs 2 lakh more
ET Realty  |  January 24, 2019

Abhijay Jha Ghaziabad

The UP government is planning to increase the cost of flats under Pradhan Mantri Awas Yojana (PMAY) by Rs 2 lakh. As of now, each flat under the scheme costs Rs 4.5 lakh.

 

Sources said the price of flats was taken up in a meeting of the state government with the builders’ association on Tuesday. Some officials said the price of affordable houses needed to be increased to woo more private builders.

 

Six builders on Tuesday submitted detailed project reports for 3,388 units under PMAY to the Ghaziabad Development Authority (GDA). “So far, the state government has approved the DPR for 10,786 units under PMAY, of which 777 would be constructed by private builders,” said Ishtiyaque Ahmad, chief architect and town planner at GDA. “On Tuesday, six builders presented the DPR for an additional 3,388 units. It will now be sent to the state government for approval,” he added.

 

Asked if the cost of each flat would be increased, Ahmad said: “Of the Rs 4.5 lakh for each flat now, Rs 1.5 lakh is given by the central government, Rs 1 lakh by the state and Rs 2 lakh by the beneficiary. But the state government might increase the cost to Rs 6.5 lakh. In that case, the contribution of the state and central governments will remain the same but the beneficiary will have to pay Rs 4 lakh,” he added.

 

The target set for GDA is to build 13,500 affordable houses in 2018-19, 18,000 for the next financial year, and 4,500 in 2021-21, which add up to 36,000 units.

 

The government has involved private developers to build affordable houses by offering several incentives, which include 50% rebate on development fee and no charge on land use.