Your maid, cook or the driver may own a single or two BHK flat in Namma Bengaluru soon – for Rs 50,000. This can happen if chief minister Siddaramaiah’s latest budget announcement of constructing one lakh multi-storied dwelling units for the economically weaker sections and homeless in the city, is implemented in right spirit. To be executed by the Rajiv Gandhi Rural Housing Corporation (RGRHC), the project is estimated to cost around Rs 7,000 crore. For the first time, officials have come up with a unique revenue model to fund the project – auction of 25% of project land as plots.
Encroached government lands in and around the city that were recovered by the deputy commissioner, urban, will be used for the house construction — around 1,000 acres in 200 locations. The formula worked out is — for every one acre, 25% will be used for plots — five sites of 30 feet by 40 feet will be sold through auction to fund the subsidy after beneficiary contribution and government subsidy. And the offer can be quite tempting considering that some of the locations are prime and the base auction amount could be around Rs 2,000/sq ft.
DC, urban, has already transferred 360 acres to the RGRHC. The cost of construction of each flat of 270 sqft (carpet area) is estimated at Rs five lakh. As there is a funding gap between cost of construction and the government funding, the shortfall that continues even after the beneficiary contribution is Rs 1.95 lakh, is proposed to be met from the auction of 25% of the land as house sites.
“The cost of land in the city is high and it is neither financially nor practically feasible to purchase private land to provide housing for the homeless. Recently, we floated the proposal to use the government land recovered from land grabbers to construct dwelling units for the poor as going vertical was found finacially feasible, managing director of RGRHC Munish Moudgil told media.
The maze of figures show that of the Rs five lakh estimated cost of construction of a 270 sqft unit, Rs 50,000 is the beneficiary contribution (SC/ST) and Rs 2.4 lakh for general category. Some portion of the balance will be pitched in by government and the remaining (Rs 1.55 lakh + Rs 40,000 for basic infrastructure) to be taken care of by the plot auctions. For one acre, five plots of 30 feet by 40 feet will be auctioned and the the government expects a minimum of Rs 2,000 per sq ft which will go up in prime locations. According to the formula worked out, five plots of 1,200 sq ft each can enable the funding gap of 75 dwelling units.
Also, apart from the cost of construction, the cost of basic amenities like roads, drains, external electrification, comes up to about Rs 40 lakh per acre. Assuming, 100 dwelling units (ground plus three floors) are planned in one acre, then the overhead infrastructure cost per unit comes upto Rs 40,000.
Credits Bangalore Mirror