After several amendments and extensions, Jaipur Development Authority (JDA) has been able to attract developers for seven of its nine affordable housing projects. The authority is optimistic to receive proposals for the remaining projects before bids get open on Monday.
“Bids had been received for seven of the projects, however, as the bids were delivered in physical format, the applicants had been given time till Monday to submit them online,” said a JDA officer.
Proposed under the “Chief Minister Jan Awas Yojna-2015”, the projects are to develop as affordable housing only for the economically weaker section (EWS). These are to be constructed on JDA land at Anand Vihar, Abhinav Vihar, Shaurya Nagar and Surya Nagar areas of the city on Engineering, Procurement and Construction basis.
Despite the limited liability, the low ceiling for construction price has made most developers reluctant to bid for the projects. A recent rise of 10 per cent in the construction cost ceiling too was inadequate to expectations of the developers. The development authority, meanwhile, insists to compensate the developers through other incentives, such as an additional built-up area for their other projects.
A contract clause stating that construction on the project will commence after 75 per cent of pre-booking, has also made many of the investors suspicious as demand remains low. “The slowdown in real estate market has made the incentives less lucrative for the developers, yet there has been more response towards the projects this time,” adds another officer at JDA.
The development authority, meanwhile, has also agreed on several of the cost-cutting suggestions including the exclusion of the lift facility in the flats. It has been for a couple of years that many of these projects have remained in the pipeline and even as the authority recently amended several of the contract terms, not all of the projects have been able to find investors.
THE RISE
Despite the limited liability, the low ceiling for construction price has made most developers reluctant to bid for the projects. A recent rise of 10 per cent in the construction cost ceiling too was inadequate to expectations of the developers.
