The floor seems to be divided between realtors and Gujarat urban development authorities on the implentation of the New Integrated Township Policy. Township projects worth over Rs 10,000 crore (Rs 100 billion) in and around Ahmedabad have been left in a lurch due to this, according the real estate developers.
Many developers who have already earmarked land for the townships feel that the policy is not yet implemented and that the committee for clearing the projects has not been formed so far.
"We do not know whom to approach for getting the plans cleared for the township project. According to the draft policy, a committee was to be formed for giving clearances. Also, the government had promised a single window clearance for township projects which is not in place," said a real estate developer who is setting up a township on the outskirts of Ahmedabad.
The special committee is to check projects on a case-to-case basis and give special permissions including floor space index relaxation. If the committee is not formed soon, some developers might alter their plans of integrated townships and may even opt to sell the land, real estate sources said.
Developers are already facing problems as they had to hold the land for over a year now without carrying out any construction activity. Meanwhile a senior government official said that while the policy is very much in place.
He said that projects worth Rs 180,000 crore (Rs 1.8 trillion) out of the Rs 220,000 crore (Rs 2.2 trillion) worth of memorandums of understanding signed at the Vibrant Gujarat Urban Summit in February 2007 are in the process of implementation. He however refused to divulge details of any project.
Developers contest this by saying that only paper work for these projects have begun and not a single plan for township has been passed. Integrated townships will be self-contained and will have all facilities like hospitals, schools, community halls, swimming pools, restaurants.
"Buyers will get more value for their money in such townships," according to realtors. As per the draft policy, any project above 100 acres will only qualify for getting benefits of integrated township and developers will have to get a mandatory rating from Crisil for their projects.
The government is yet to disclose zones for setting up townships and this would be at various other cities in Gujarat including Rajkot, Surat, Vadodara, Mehsana and Bhavnagar.
"We are waiting for the government to implement the policy. Also the FSI has to be relaxed under the policy. Unless this is done, we cannot shape our design plans. With FSI in place we can decide on the number of units that can be built in our township," said a senior official of Adani group.
Adani is planning to set up a Rs 2500 crore (Rs 25 billion) Shantigram township project at Sanathal on SP ring road spread over 500 acres. The project will act as a huge booster for the development of the area, realtors feel.
Ganesh Housing is planning three townships on SG highway. The developer has signed an MoU at the Vibrant Gujarat Urban Summit for setting up an integrated township in 400 acres called Smart City near Godavi village for a project cost Rs 1500-2000 crore (Rs 15-20 billion). The Smart City project is facing roadblocks due to policy level issues, said a senior official of Ganesh Housing.
The project cost of Smart City is pegged at Rs 2,000 crore (Rs 20 billion) . Savvy Infrastructure is coming up with an integrated township near Gota in 100 acres with an investment of Rs 1,000 crore (Rs 10 billion). Shyam Buildcon has acquired about 400-500 acres on SG Highway and is holding on to its plans.
