The West Bengal government plans to enter into joint venture partnership with private real estate developers to promote LIG and MIG housing complexes in New Town near Rajarhat.
Speaking to the Confederation of Real Estate Developers of India and city-based G S Marketing, Gautam Deb, minister for housing and public health engineering said, "over 70 to 80 per cent of demand in the housing sector comes from the MIG and LIG category. In order to meet the requirement the state government has decided to partner with private companies to assist develop projects in New Town, providing shelter to nearly 1.5 million people in future."
The joint venture companies needed to invest 50 per cent of the total project cost in the MIG and LIG houses, said Deb.
The LIG prices would be fixed by the government, whereas in MIG ones the developers would be allowed to make little profit and HIG prices would be market driven, added Deb.
He however did not spell the specific incentives the state planned to give to developers.
The land for the the projects would be under the banner for West Bengal Housing Infrastructure Development Corporation Limited.
The minister however did not clarify if the land would be acquired by HIDCO or the private developers.
The minister was hopeful that the government's push would bring down the spiraling property prices in Rajarhat. "The construction of 5,000 flats would impact another 20,000 flats in the locality," he said.
Deb further said in the next 10 to 15 years nearly 15 crore (150 million) new residents would be added in the urban areas, requiring at least additional 90,000 dwelling units every year for the next 15 years.
Currently, nearly 25,000 units were being added every year to the housing pool.
