GANDHINAGAR: Gujarat is reexamining its urban housing strategy. As part of its Urban Development Year initiative, the state government is crafting a new township policy aimed at fostering organized and affordable housing throughout its cities. The previous policy from 2009 struggled to take off due to various implementation issues. The updated version aims to provide incentives such as eased floor space index (FSI), tax reductions, and improved alignment with urban development plans.
Sixteen years after launching the 2009 Residential Township Policy, the government plans to entice real estate developers to create large-scale, self-sufficient townships.
Senior government officials noted that the new policy is set to rectify many shortcomings that plagued the earlier version. “Only a handful of projects materialized under the 2009 policy because developers faced challenges aligning with local services like water, roads, and sanitation. The government has heard requests from various real estate organizations for a new township policy because of these issues. This new policy will ensure townships correspond with local bodies’ future development plans to eliminate such obstacles,” explained a source involved in the development.
Government sources indicated that since developers bear the majority of costs for public infrastructure within a township, they intend to offer concessions on “land deductions” (land taken by urban authorities for public utilities such as roads and parks) for planned townships. “The government is also evaluating proposals to ease FSI and offer additional concessions on municipal taxes, stamp duties, and registration fees for the new township policy,” the sources added.
“We are examining various provisions and incentives from leading township projects at national and international levels. The proposed policy will incorporate these incentives. We will soon launch public consultations to gather input from a diverse range of stakeholders,” said an official.
Sources also mentioned that the government might explore the option of providing land parcels to developers for such projects, given the potential challenges of land availability for large township developments.
