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    Notification issued for Enabling Planned Development of Privately Owned Lands in Delhi

    Category : MPD-2021 News

    The Delhi Development Authority (DDA) has issued a notification for enabling the planned development of privately owned lands in Delhi. The policy to enable planned development of privately owned lands in Delhi was approved by the Authority in its meeting held on 21 December 2017 and the same was circulated to all the ULBs and other govt. agencies. Simultaneously, in order to operationalize the above policy, the formulation of Regulations for Enabling the Planned Development of Privately Owned Lands” was taken up under Section 57 of Delhi Development Act, 1957. The regulations were approved by the Authority in its meeting held on 19.06.2018 and thereafter the same has been approved by the Central Government for issuance of Final Notification of the same by DDA under Section 57 of DD Act, 1957.

    The following are the salient features of the policy and regulations for Enabling the Planned Development of Privately Owned Lands:

    a. The policy will be applicable on the private land pockets which have been left over from the planned development, which could not be acquired, land pockets for which acquisition proceedings have been quashed by the courts, where acquisition lapsed as per Sub-Section 2, section 24 of new LAAR Act, 2013.

    b. This policy shall not be applicable on the areas falling in Zone O, covered under water bodies, land pockets falling under ridge, Regional Park, Reserved Forest Areas, Monument Regulated Zones, laldora / extended laldora, disputed lands and land parcels which are already eligible for land pooling.

    c. Development on the privately owned land shall be in consonance with the land use as notified in prevailing MPD/ZDP or land use/ use premises mentioned in already approval layout plans/schemes, if any or as specified in these Regulations.

    d. Privately owned lands with pre-MPD 1962 activities / use, can choose to continue with the same activity / use provided that all provisions specified in the Regulations are met.

    e. On above lands with pre-MPD-1962 activities, the landowner can also opt to develop as per the use specified in the prevailing MPD/ ZDP/ approved layout plan subject to payment of requisite charges.

    f. As per policy, a Grievance Redressal Mechanism to address all grievances/disputes that may arise during the implementation of the Policy shall be set up.

    Earlier as per MPD-1962, the process of planned development was based on Large Scale Acquisition and Development of Land. It was envisaged as a public sector led process with very little private participation in terms of development of both, shelter and infrastructure services. The same planning process was substantially reiterated in the Master Plan for Delhi 2001 (MPD-2001).

    Later in MPD-2021, a critical reform has been envisaged in the prevailing land policy and facilitating public – private partnership. Thus, there is paradigm shift from land acquisition to requirement of private participation in the assembly and development process. To bring forward this reform, DDA has formulated a Policy to enable the Planned Development of Privately Owned Lands such as private land pockets which have been left over from the planned development, which could not be acquired, land pockets for which acquisition proceedings have been quashed by the courts, etc.

    Source: Business Standard
    Dated: 5th July 2018


    DDA notifies charges for allowing permitted land use change in Delhi’s industrial clusters

    Category : MPD-2021 News

    Move expected to decongest Delhi’s industrial areas and move polluting units to the periphery

    In an attempt to decongest Delhi’s industrial areas and move polluting units to the periphery, Delhi Development Authority (DDA) has notified charges for allowing permitted changed land-use in industrial plots, as residential or commercial or hospital.

    What this means is that existing industrial clusters located in the middle of residential areas such as Mayapuri, Lawrence Road, Patparganj, Okhla etc may now go in for land-use change after payment of conversion fees.

    The change in land-use is subject to payment of a conversion fee. Conversion charges for permitting residential use varies from Rs 14,328 to Rs 24,777 per sq m and additional FAR (floor area charges) have been fixed from Rs 3, 039 to Rs 7,597 per sq m in various industrial areas, a Housing and Urban Affairs Ministry release said.

    These charges are based on circle rates of adjoining residential areas, it said.

    The use conversion charges for permitting commercial/hospital use is 1.25 times of the rates of use conversion charges of residential. The token processing fee/facilitation charges for amalgamation of plots shall be applicable as per notified rates varying from Rs 1 lakh to Rs 4 lakh, depending upon the size of the plots to be amalgamated, it said.

    The impact is unlikely to be immediate. It may take another five years to create new stock.

    “The larger vision is to decongest the core of the city and drive industry to the fringes, push industries to areas such as Narela or Bawana and create more stock because industry is no longer viable in these areas and is also polluting,” explains Ramesh Menon of Certes Realty.

    But challenges remain. These include amalgamation of land. How many owners would be willing to come together? Other challenges include evolving a fresh layout plan, attracting investors and infrastructure relations issues, he adds.

    Most of these industrial areas were developed in the 1970s and over the years have deteriorated considerably in terms of physical infrastructure.

    Most of the industrial areas are located along mass public transport corridors and there is a need to optimize land use of these areas through the process of redevelopment. Redevelopment of such areas is based on certain parameters, spatial planning norms and environment related conditionalities regarding provisions and augmentation of essential infrastructure and services, a ministry release said.

    The central government by way of modifications in the Master Plan 2021 has already permitted residential use (group housing) on any existing industrial unit(s)/plots with a minimum area of 3000 sqm abutting road 24 m. On such plots, 1.5 times FAR of the permissible FAR of group housing is permitted as well as amalgamation of smaller industrial plots and sub-division of larger plots as prescribed for group housing in MPD-2021 and Unified Building Bye-Laws 2016.

    MPD-2021 also permits other non-industrial activities such as commercial or hospital on industrial units /plots abutting roads of 24 mtr, right of way (ROW) and above. These non-industrial activities on such plots are permitted subject to payment of conversion and other betterment levies as applicable.

    The policy also provides for construction of EWS flats which will provide respectable living for lower strata of society.

    A time period of five years has been allowed for completing construction.

    The charges collected will be utilised for augmentation of services, infrastructure and upgrade of surroundings of that industrial area, the release added.

    Source: Moneycontrol.com
    Dated: 4th July 2018


    Land pooling policy is a great chance for DDA to undo past errors

    The proposed modifications to the Delhi Development Authority’s (DDA) land pooling policy have been widely seen as a game-changer in affordable housing. But to contextually analyse the land pooling policy and the modifications proposed under chapter 19 of Master Plan of Delhi 2021 (MPD 2021), let’s look back to what happened over the preceding few years.

    MPD 2021 was notified in February 2007 (a good 11 years back) with a view to frame guidelines and norms for the development of Delhi till 2020. The entire land mass of Delhi was included for urbanisation, thereby, making it the first 100% urbanised state.

    The land pooling policy was notified by the central government in 2013, with a view to include the private sector in the process of urban development, both in strategic planning, aggregation of scattered small land holdings as well as execution and development.

    Make no mistake — it indeed is a paradigm shift from the process of urbanisation of Delhi covered under the earlier master plans, wherein the DDA used to acquire large land masses, and develop it progressively, sometimes taking decades. (examples: Rohini, Dwarka). DDA was the sole landowner, planner, developer, seller, auctioneer, and partook in every conceivable role. Under the current policy, DDA would cease to be a land aggregator cum developer, and merely remain a ‘facilitator’ and regulator.

    Consolidation of land has been the biggest challenge that the development agencies have long faced while trying to urbanise India. It is a dynamic process, and landowners have forever been influenced by each other, not by the government agency acquiring the land. Any entity that approaches a landowner with a promise of development on the land, with or without a share of the benefit, is looked at with suspicion.

    The urban design form is dictated by the seamless availability of land; the best examples of which are seen in the cities in Delhi NCR. Below is a snapshot:

    Delhi: Piecemeal expansion has led to almost half the population living in unauthorised settlements, with more than 125 sq km of land mass under unauthorised development/ occupation.

    Gurgaon: The government declared the sector boundaries in the master plan in 2006, but the infrastructure is yet to be laid owing to land acquisition issues, though dwelling units are ready for occupation. Even the connecting roads between sectors haven’t been developed.

    Noida: Access to land ensured that gridline infrastructure could be planned, and created. Development of townships/residential and commercial towers was created subsequently.

    It is imperative that the urban form and methodology of a time-bound development of infrastructure is defined, more so in the case of Delhi wherein multiple agencies would be providing services like trunk roads, arterial roads, water, power lines, sewage water treatment plants etc.

    What would be the proposed location and alignment of the trunk lines of these services within the sectors? In the absence of clarity, how can an organised Developer Entity (DE) invest time, effort and money to decide which sector would be optimally efficient?

    That the sector plans haven’t been released yet to facilitate decision-making is a different matter altogether. When would this happen?

    The launch of the land pooling policy is a brilliant opportunity for DDA to undo the shortcomings of the past, and facilitate the development of Delhi as a modern capital of the third-largest economy of the world.

    Is there any precedent in India, where a few disparate private DEs have accepted and executed such a vast responsibility — of aggregating land from the owners, investing capital for approvals, service infrastructure and development without any counter guarantees from the government on ROI?

    “A known devil is better than an unknown angel,” says an old saying. By our interactions with the land owning community, they would have had no problem in surrendering their land to a government agency like DDA. However, when the land has to be surrendered or rights shared or co-developed etc with a yet to be DE, most landowners are circumspect. Is there a trusted, capable agency that would mediate, negotiate and handhold both sides on a daily basis?

    Delhi is already suffering on account of multiple agencies laying and providing services. Landowners rightfully fear that with DDA not liable to provide (any policy document) the services in a time-bound manner, infrastructure would be a casualty, thereby delaying the development and opportunity to monetise their land assets.

    MPD 2021 might be the largest investment opportunity in India for institutional investors to partner landowners to develop a ‘modern megapolis’, and the last for at least a decade in NCR, It is generally understood that unless the services trunk lines are laid by the government, before the re-allotment against surrendered land, the interest levels would be low. Hence, the need for an approach on the lines of Public-Private-Policy-Partnership.

    What is the stated process of ‘acquisition of land for sector roads?’ In the policy document, DDA has specified that the contiguous land abutting sector roads would be chosen for licensing. When would the layout plan of sector roads be released to the public? Would they remain ‘hard coded’ or can it be subjected to change of alignment?

    Our internal research with leading investors reveals that the following factors influence their decision.

    Stability in criterion – Policy making & implementation
    Risk (Uncertainty about outcome)
    Forecasting Risk owing to resistance to policy
    History of market trend
    Investment horizon
    Expected return
    External factors
    Inflation & taxes
    Socio economic political conditions
    Information in public domain & education of landowners
    Sales velocity
    Floor Area Ratio (FAR) has to match the surrounding markets, if not exceed compared to the other markets in NCR.
    The Prime Minister’s vision for the nation talks about affordable homes for all segments of the society, while the FAR numbers are unviable for development of finished products at the price points wherein lie the real demand.

    Said the above, MPD 2021 could become a template for the urban design and development for the future, subject to DDA, the Ministry of Urban Development and other stakeholders contributing towards a ‘partnership driven model of land development’ wherein the dividends are shared in pre-agreed manner.

    And, mind you, the returns can be phenomenal for all.

    Ramesh Menon is the founding Director of Certes Realty Ltd, and an independent Director on the board of SPA Capital Group. He brings perspective on both land, investments and monetisation of real estate assets.

    Source: CNBC TV18
    Dated: 5th July 2018


    Land pooling policy: Public suggestions to be heard by board on July 2-3, says DDA

    Experts welcome the move as a step in the right direction, but say clarity required on how the urban body intends to integrate functions of other government departments

    Public suggestions and objections on DDA’s land pooling policy, which is expected to meet the residential needs of about 95 lakh people besides stimulating economic growth, will be put before the authority’s Board of Enquiry and Hearing on July 2-3, an official statement has said.

    Urban planners and experts have welcomed the move but said clarity required on how the urban body intends to integrate functions of other government agencies.

    “It’s a step in the positive direction to involve the suggestions of the stakeholders pre notification. However, it’s not clear yet on how DDA intends to integrate the functions of other government departments such as revenue, MCD etc to facilitate land pooling. An exercise of this scale cannot be executed without a robust technology support, which is yet to be commissioned by DDA. Urbanization through land pooling is the future and large scale institutional investment, both domestic and international needs be solicited. Hence, it’s important that their point of view also be considered along with the landowners,” says Ramesh Menon, Certes Realty.

    In December last year, the policy was simplified for speedy execution. DDA was to act as a facilitator and planner as against the role initially envisaged for it as a part of simplification of execution of land pooling policy. What that means was that the transfer of pooled land to the DDA will not be required.

    Originally, land pooled under the policy was to be transferred to DDA which was to act as the Developer Entity (DE) and undertake further sectoral planning and development of infrastructure in the pooled land. At the December meeting it had decided to do away with this requirement and said that land title will continue to be with the original land owners.

    “For implementation of land pooling policy, public notices were published in newspapers on January 11-12 for inviting objections, suggestions and observations or views within a period of 45 days from the general public. In all, 734 objections, suggestions and observations or views have been received,” the DDA said in a statement.

    Individual hearing of the persons who have filed their objections, suggestions and observations or views will now be held on July 2-3 before the DDA’s Board of Enquiry and Hearing at the DDA headquarters in Vikas Sadan, it said.

    In December last year, DDA was also asked to ensure single-window clearance mechanism for according necessary approvals for speedy implementation.

    Land Pooling Policy covers the greenfield areas in five zones viz., J, K-1, L, N and P-II coming under the Master Plan of Delhi-2021. To incentivise dense development for effective utilisation of scarce land resource in the national capital, the policy permits enhanced FAR of 400 as against the present 150. To promote affordable housing, an additional FAR of 15 percent is also allowed.

    About 22,000 hectares of land is expected to be pooled which could meet the needs of about 95 lakh people. Land pooling would catalyse economic, social and civic development of the national capital besides triggering substantial investments and employment generation.

    Affordable houses for economically weaker sections to be built under the policy shall be of the size of 32-40 sq mt. Half of this housing stock shall be retained by the Developer Entity to house Community Service People working for the residents/owners of the Group Housing. These houses will be built at the site or at premises contiguous to the site allotted. The other half of affordable houses shall be sold to DDA at the base cost of Rs 2,000 per sq ft for further sale to beneficiaries.

    Issues pending with the Delhi government, such as, notification of 89 villages under the DMC Act, 1957, and declaration of 95 villages as development area of the DDA under Section 12 of Delhi Development Act, 1957, were resolved in May and June last year respectively.

    Source: MoneyControl.com
    Dated: 22nd June 2018


    Farmers stage protest outside Nirman Bhawan

    A group of farmers led by Swaraj India today protested outside Nirman Bhawan, which houses the office of the Housing and Urban Affairs (HUA) Ministry, against the delay in implementation of land pooling policy, the party said.

    Earlier, Delhi Development Authority (DDA) vice-chairman Udai Pratap Singh had said that the land pooling policy was ready and hopefully” by July-end, it would be submitted to the ministry which would then notify it.

    Swaraj India Delhi State President Anupam tweeted about the protest and alleged that HUA Minister Hardeep Singh Puri got the farmers, who had come to ask for their rights, detained at a police station.

    Responding to his allegations, Puri in a tweet said, I never cease to be amazed by the extent to which people go to spread #FakeNews. I am in Lucknow, & not even in Delhi today. By the way, I regularly meet concerned citizens including farmers, traders & residents in my office. Better luck next time.

    Anupam replied back saying he don’t expect one of the rare sensible ministers like you (Puri) to term everything that doesn’t suit as fake news.

    Anupam also posed questions regarding landholding, development charges and time of implementation of policy.

    In response to the queries, Puri asked him to wait for the real facts on land pooling and advised him not to use social media for disinformation.

    The farmers also pressed for scrapping of the mandatory provision of five acre landholding and development charges in the yet-to-be-notified policy.

    Source: Business Standard
    Dated: 19th June 2018


    DDA approves amendments in MPD 2021: Five things you must know

    Category : MPD-2021 News

    DDA approving amendments to Master Plan 2021 is not enough. All civic agencies need to come on board and revise the layout plans of colonies taking into account details of the current population and their civic requirements

    In an attempt to provide relief to traders and local shopkeepers from the sealing drive, Delhi Development Authority (DDA) has approved amendments in Delhi’s Master Plan 2021 for local shopping complexes. These will now be notified by the ministry of housing and urban affairs which will file an affidavit in the Supreme Court.

    How will these amendments help? These may bring to a halt the sealing drive on local shopping complexes. Commercial premises of several traders have been sealed for failing to deposit conversion charges according to provisions in Master Plan 2021. The Supreme Court had last month issued a directive to the DDA to invite fresh feedback from the public over a period of 15 days on the amendments.

    How will commercial areas in Delhi get impacted?

    1. Liquor shops, pubs, discotheques and clubs cannot be opened on any floor of buildings falling in residential areas in the city.

    The main concern of most resident welfare associations is to do with non-residents and unauthorised persons entering residential areas. With commercial establishments operating in residential areas, there is a huge stress on the existing infrastructure including physical, social and civic infrastructure. These changes are expected to put an end to unwanted brawls and parking issues. What this also means is that liquor vendors or clubs located on residential plots may now have to shift to notified commercial complexes.

    2. The proposed amendment in the Master Plan 2021 for Delhi, includes bringing a uniform floor-area ratio (FAR) for shop-cum-residence plots and complexes at par with residential plots.
    Use of upper floors for commercial activities has also been allowed. The upper floors can now be converted to commercial use after paying the applicable charges. This also means that they may now get more ground coverage and floors — from the earlier three storeys to four.

    It is important to understand that these colonies, some of which that are almost five decades old, were planned keeping in mind infrastructure requirements then. Over time, each plot has been converted from one floor to four floors putting immense pressure on parking space, water and power usage etc. A plot that was initially designed for perhaps five to six residents per plot, now supports over 50 people working in commercial spaces that come have come up on the residential plot. Infrastructure therefore needs to be augmented.

    3. Activities which are non-polluting, non-hazardous and not prohibited by law in residential areas shall be permitted post the amendments to Delhi’s Master Plan 2021.

    4. DDA has also approved that “amount collected on account of various charges will be credited to a designated fund (escrow account) to be used exclusively for augmentation of infrastructure facilities and amenities (parking, public toilets, water supply) of capital nature”.

    For residential facilities designed five decades ago to service 200 people per hectare, now have to service around 2000 people per hectare. Infrastructure planned for 200 people needs to be augmented for 2000. This calls for redesigning the layout plans of the colonies taking into account current density of the area and providing for additional load of power, water, parking, roads etc. All this will require money. The amount collected on charges, as per the amendments to the Master Plan 2021, will have to be deposited in a designated escrow account to be invested for improving infrastructure for that particular colony.

    5. In order to promote parking, the owner of the plot will be allowed to amalgamate the plots up to minimum plot size of 1,000 sqm, to provide additional parking on the amalgamated plot. These plots shall be entitled for a rebate of 50 percent in conversion charges. In case, there is no parking facility available in the vicinity, local body concerned may declare such areas as pedestrianised shopping streets or areas. Public transport authority shall ensure last-mile connectivity to these areas.

    Amalgamation, in this case, refers to razing the structure and rebuilding it after providing for integrated facilities with augmented parking – basement or stilts and following disaster management norms. In the event of the building being redesigned to accommodate enhanced infrastructure facilities and services, the plot shall be entitled to a 50 percent rebate. Also, if a parking facility is designed away from the complex, it is mandatory for transport authorities to ensure last mile connectivity.

    Key takeaways

    DDA approving amendments to Master Plan 2021 is not enough. It is not a means to an end. All civic agencies need to come on board and revise the layout plans of these colonies taking into account details of population and their requirements. These need to be prepared and approved by civic agencies and investments need to be set aside proportionately, says Ramesh Menon of Certes Realty, adding layout plans need to be revised before amalgamation is permitted and amenities/services are augmented.

    Commercial establishments generally operate until late evenings disturbing peace and tranquility of the residential colony. Once shops, bars and other commercial establishments shift to designated commercial areas, residents will not be disturbed and pollution levels including noise, smoke and waste will also be controlled.

    Source: MoneyControl
    Dated: 20th June 2018


    DDA recommends changes in Master Plan

    Category : MPD-2021 News

     

    The Delhi Development Authority’s board of inquiry in its hearing today proposed amendments in development control norms of shop-cum-residential plots and for redevelopment of existing godown clusters in non-conforming areas – as a modification to the Master Plan of Delhi (MPD) 2021.
    The announcement was made following a meeting with the Lieutenant Governor Anil Baijal, who is also the Chairman of DDA. This amendment may give relief to traders of whose properties are being sealed, sources said.

    The areas developed prior to 1962 like Lajpat Nagar, Rajouri Garden, Tilak Nagar, Kamla Nagar etc. having concentration of commercial activities, may continue subject to conditions prescribed under the mixed use regulations, the recommendations said.

    Shop-cum-residence complexes will be allowed to continue with the activities permissible in the local shopping centre with conditions that floor area ratio (FAR) of such plots will be as prescribed for respective size of the residential plotted development. Payment of conversion charges from “Residential” to “Commercial” will be applicable as prescribed with the approval of government.
    The recommendations said that other existing shop-cum-residence plots would also be allowed to continue with originally permitted use with the FAR of residential plotted development. The upper floors can be converted to commercial use after paying the applicable charges.

    In order to promote parking, the owner of the plot will be allowed to amalgamate the plots upto minimum plot size of 1000 square meter, to provide additional parking on the amalgamated plot. Such plots will be entitled for a rebate of 50 per cent in conversion charges. In case there is no parking facility available in the vicinity, concerned local body may declare such areas as pedestrian shopping streets. Public transport authority will ensure last mile connectivity to these areas.

    Other activities which are non-polluting, non-hazardous and not prohibited by law in residential areas will be permitted. This will include the activities carried out by the differently-abled persons as per their individual skill sets.

    In order to address issues related to infrastructure facilities, pollution, environmental concerns etc., norms will be prepared in consultation with respective departments.

    Liquor shops, bars, discos, pubs and clubs will not be allowed in the residential premises as a part of mixed use.

    Amount collected on account of various charges will be credited to a designated fund – Escrow account – to be used exclusively for augmentation of infrastructure facilities including parking, public toilets, water supply of capital nature.

    As far as norms for redevelopment of godown clusters existing in non-conforming areas and wholesale trade the DDA’s board of enquiry and hearing recommended that godowns and whole sale trade would be allowed on the roads that have minimum width of 30 metres.

    Tribune News Service
    New Delhi, June 19, 2018


    LG holds DDA meeting on proposed amendments to Delhi Master Plan

    Category : MPD-2021 News

    NEW DELHI: Lieutenant Governor Anil Baijal on Tuesday held a meeting with Delhi Development Authority (DDA) officials over the proposed amendments to Master Plan of Delhi-2021 (MPD-2021) in development control norms of shop-cum-residential plots and in norms for the redevelopment of godowns clusters existing in non-conforming areas.

    Officials said the meeting was important, and in the interest of people and development of Delhi. It was convened after following due procedures prescribed for such amendments in MPD-2021.

    Since May 26, the DDA has received over 800 suggestions and objections from the public on the proposed modifications to MPD-2021, officials said on Tuesday. The feedback, received over a period of 15 days, was on Tuesday placed before a board constituted by the urban body, they said.

    The Authority had invited feedback from people following a directive from the Supreme Court.

    “With reference to public notices published in the newspapers on May 26 for inviting objections/suggestions from the public regarding the matter were placed before the Board of Enquiry and Hearing,” a senior DDA official said.

    Source: The Millenium Post
    Dated: 20th June 2018


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