Now, pvt developers must make 'room' for urban poor

It is mandatory to set aside 20 pc of land in residential layout for EWS

The State government is planning comprehensive amendments to the Karnataka Town and Country Planning (KTCP) Act - 1961, which will make it mandatory for new residential layouts spread across 4,000 sq m and above to earmark not less than 20 per cent of the gross land for Economically Weaker Section (EWS) and Low Income Groups (LIG). While the State government is yet to notify who will comprise the EWS and LIG, official sources said these include families with monthly income up to Rs 3,300 and Rs 7,300 respectively.

The government also proposes to extend the regulation while approving building plans under Section 15 of the KTCP Act. The move is in line with the State’s housing policy and is also a requirement for future release of grants under Jawaharlal Nehru National Urban Renewal Mission (JnNURM).

As per the proposed amendments, reservation of 20 per cent land for urban poor is a must for developers taking up residential projects on plots measuring more than 4,000 sq m. Those developing layouts measuring between 1,000 and 4,000 sq m can pay a “shelter fee” in lieu of the land for the poor.

Shelter fee

Official sources said the “shelter fee” or “impact fee” (in case of non-residential layouts) will be equal to the market value of the land or floor area determined on the basis of rates notified by the State government under the Karnataka Stamps Act - 1957.

The fee will be maintained in a separate account and utilised for the purpose of providing housing for EWS and LIG, states a draft notification issued by the Urban Development department recently.

There is some relief for developers taking up residential projects on plots measuring below 1,000 sq m. They will be exempted from the provision of reservation of land as well as payment of shelter fee.

In case of approving building plans, the proposed amendments state that for any housing project or apartment where the total plot is above 1000 sq m, 20 per cent of the gross floor area will be reserved for EWS and LIG. Only shelter fee will be collected for any residential building for single family occupation on a plot area of 500 sq m and above.

The proposed amendments will not apply for residential building with plot area below 500 sq m. The process of allotment of plots or houses to EWS and LIG, the procedure for selection of eligible persons, will be finalised by the government, the draft notification states.

While State government agencies engaged in housing projects are already reserving sites for the poor, this is the first time that the government is making even private layout developers part with developed land for economically weaker sections.

In an earlier notification, the government had proposed that the changes would apply to all private builders taking up residential projects on plots measuring 20,000 sq m or more. However, the Centre directed the State to revise the proposal and make it applicable for plots measuring 4,000 sq m onwards.