The Centre is considering new financing options for its redevelopment project of seven government colonies in South Delhi — following multiple changes in the original plan approved in 2016, as per officials from Ministry of Housing and Urban Affairs (MoHUA).
As per a Hindustan Times report, of the seven general pool residential accommodation (GPRA) colonies — 1,411 flats at Thyagraj Nagar and Mohammadpur are ready and will be inaugurated by Union Housing and Urban Affairs Minister Hardeep Singh Puri.
Last month, MoHUA had sent the project to the public investment board under the Finance Ministry for review, officials said.
Housing Redevelopment In Delhi
In 2016, the Centre approved the redevelopment of seven GPRA colonies located in — Sarojini Nagar, Nauroji Nagar, Kasturba Nagar, Netaji Nagar, Srinivaspuri, Mohammadpur and Thyagraj Nagar.
The plan proposed to construct approximately 25,667 dwelling units at a cost of approximately Rs 32,835 crore.
Previously, these seven residential colonies consisted of 12,970 dwelling units.
The Ministry proposed the regeneration of these old housing colonies to increase the housing stock by utilising land resources efficiently according to the Master Plan Delhi (MPD) – 2021, using modern construction technology and improved civic infrastructure.
Out of these projects, the National Buildings Construction Corporation (NBCC) has been tasked with raising funds and the construction of three government colonies — Sarojini Nagar, Nauroji Nagar and Netaji Nagar.
The remaining four colonies will be redeveloped by the Central Public Works Department (CPWD).
According to officials, the project deadline has been extended from 2023 to December 2025.
Financing Options For The Projects
According to NBCC India, “The commercial centre at Nauroji Nagar and close to 800 flats at Sarojini Nagar will be completed this year, by September and August respectively.”
The project in Nauroji Nagar and part of Sarojini Nagar is being implemented on a self-financing scheme by sale of commercial components.
An official from NBCC said, “Close to Rs 12,000 crore will be raised from the sale of commercial space at Nauroji Nagar, of which we have already sold inventory worth Rs 6,000 crore. We have invited bids for the bulk sale of 622 commercial units at our Downtown project at Sarojini Nagar and plan to raise around Rs 1,300 crore from it. Other options to raise funds are being explored.”
As per the HT report, various financing options are being considered for the GPRA projects.
There are five land parcels measuring 60 acres in the area where the colonies are located, which the government can use to either construct commercial or residential units or sell as land parcels.
Apart from the housing redevelopment projects, there is also a new project to build a 14-km elevated corridor in the area to ease traffic congestion.
This corridor will run from INA at Aurobindo Marg to the Mahipalpur underpass at national highway-48 and will connect all flyovers between Moolchand and Moti Bagh, just before the start of the elevated Metro corridor on the Ring Road.
A senior official from the Delhi Development Authority stated that the corridor would serve as an alternate route to the Indira Gandhi International (IGI) airport, covering all the GPRA colonies in south Delhi.
As per MoHUA officials, “There have been a lot of changes in the original project plan. For instance, the 14-km elevated corridor was added to the project later on. Due to several changes, the department of expenditure, under the finance ministry, had asked us to send the project to the public investment board for review. Once approved, it will be placed before the Cabinet for approval.”
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