Gujarat's Residential Township Policy Yet To Take Off

Sixteen years ago, in December 2009, the state's Urban Development Department, under the signature of the then Special Officer and Joint Secretary, P.L. Sharma, released the Residential Township Regulation 2009. However, due to numerous flaws and obstacles, builders' lobbies and developers were unable to benefit as they had hoped.

A senior official of the Urban Development Department said, “Very few townships have been successful under the old policy because developers could not acquire large, contiguous plots of land. Not only that, the infrastructure work from urban local bodies has been extremely weak. There has been a lack of coordination with the master plans or development plans. Even though the state government is celebrating the year 2025 as the year of urban development, the draft of this policy has not yet been finalised.”

The official further stated that in the proposed new policy, there are ongoing discussions regarding exemptions in FSI (Floor Space Index), municipal taxes, other taxes, stamp duty, and registration fees. The new policy will also include conditions related to green cover, coordination with urban local bodies, and resolving land parcel issues.

Provisions in The Old Policy

• Minimum land size in metropolitan areas: 40 hectares, and in smaller cities: 20 hectares
• Basic FSI, with an additional increase of up to 0.5
• Developers required to create public amenities and maintain them for 7 years
• 10% land reservation for weaker sections
• Seven-year maintenance period
• Approval by a committee of officials with a set timeline
• Additional FSI and other exemptions were limited

Provisions In The Draft Of The New Policy

• Assistance with minimum land size and land integration
• Exemptions for higher FSI and incentives for density
• Improvements in infrastructure coordination and land cut exemptions
• Clear implementation arrangements for weaker sections
• Maintenance period remains the same but with more clarity
• The approval process will be made faster and simpler
• Major incentives on taxes, stamp duty, and land deductions
• Full cooperation from urban local bodies in infrastructure
• Coordination with the city's development plans
• Encouragement for increased green cover

Issues Still Under Discussion

Some points of the proposed policy are still under discussion, such as whether developers should receive additional incentives for creating public amenities within the township. There will be specific guidelines for the minimum land size and separate guidelines for different zones. A premium rate for additional FSI will be formulated. There will be provisions for bank guarantees and penalties for infrastructure maintenance. However, the decision on how mixed-use projects (residential-commercial) will be counted is still pending.

After Discussions, The Draft Will Be Released

According to internal sources from the department, after sufficient discussions regarding the new provisions, the draft will be submitted to the state government, and efforts will be made to get it approved as quickly as possible. The goal is to prepare a new framework to make urban housing planned and well-organized, with large-scale self-sustained housing projects being encouraged.

Main Features Of The Draft Policy:

• Developers can be provided land parcels by the government
• Enhanced incentives for top developers
• Coordination with urban projects
• Consultation with stakeholders
• Encouraging residential, commercial, and amenities projects

Government Should Also Formulate The TDR Policy

In the “Report of the High-Level Committee on Urban Planning 2025”, Chairman and retired IAS officer Keshav Verma noted that the state government should create a new policy for affordable townships. Additionally, a Transferable Development Rights (TDR) policy should be formulated to ensure better living conditions for people in urban areas. Keshav Verma has previously served as the Municipal Commissioner of Ahmedabad, Director of the World Bank’s Sector, and Chairman of the Sabarmati Riverfront Development Corporation.

Total Policies by UDD:

The state government has released a total of six policies under the Urban Development Department (UDD), of which the first Residential Township Policy is currently under development.

• Rehabilitation & Redevelopment of Slums-2010
• Rehabilitation & Redevelopment of Slums through PPP-2013
• Regulation for Hospitals-2011
• Regulation for Hotels-2016
• Regulation for Residential Township-2009
• Regulations for Buildings in CRZ Area-2016