Andhra Pradesh realtors upset over 5% of layouts for EWS

Visakhapatnam: Realty sector in Andhra Pradesh is seething with anger with the State government's recent gazette notification to the layout developers to earmark mandatorily 5 per cent of the area for economically weaker sections (EWS).

The order says the developers have to hand over 5 per cent of the area to the district collector concerned to facilitate the authorities for construction of houses under the Jagananna Housing Scheme or in case of difficulty give equivalent area in the vicinity of 3 km. Another option for them to not forgo land is to pay a matching cost as determined by the government.

The land in question, for instance, in Visakhapatnam Metropolitan Region, has to be given to the development authority. If the land falls in non-metropolitan authorities, it has to be given to the concerned urban local body.

Confederation of Real Estate Developers' Association of India (Credai) State joint secretary P Koteswara Rao told Bizz Buzz on Thursday that they had already represented to the government to exempt all the layouts developed in less than 25 acre and allow only 12 and 10 ft roads for exit and entry and allow 9/10 ft internal roads.

Rao, immediate past Chairman of Visakhapatnam chapter, said the realty sector is now reeling under severe crisis due to the fallout of Covid-19 pandemic. The sale is badly hit due to steep increases in the prices of cement and steel. Sand shortage is another issue which has led to increase in the construction cost. Now post-bifurcation due to Amaravati capital issue, land cost went up in Vijayawada region immediately after 2014. In Visakhapatnam, the largest commercial hub in the State, land has become scarce due to executive capital decisions and proposals to launch several mega projects like Visakhapatnam-Chennai Industrial Corridor, PCPIR and GMR International Airport at Bhogapuram, about 40 km from Visakhapatnam. B Srinivasa Rao, Credai Vizag Chapter Chairman, said they are not in a position to pass on the burden in lieu of surrender of five percent of land to the buyers. The realty sector is facing a rough weather post-pandemic, he contended.

Y Srilakshmi, Special Chief Secretary, Municipal Administration and Urban Development strongly justified the decision saying the government's top priority is to provide free decent houses to all the eligible people from EWS in a record span of time.