The entire land parcel, whose existing land use is residential, can support five million sq ft of built up area
In keeping with the government’s major thrust on enhancing supply of housing across the country, the Rail Land Development Authority (RLDA) has decided to monetise its vacant land parcels pan India.
To start with, it has called for bids for its 15.2 hectare land parcel located in the heart of the capital, within 1.5 km of the Karol Bagh metro station and the Kishanganj railway station.
The reserve price of land is Rs 1,862 crore and the lease period is 99 years.
The entire land parcel, whose existing land use is residential, can support five million sq ft of built up area.
“A pre-bid meeting has been planned for August 29. The last date of submitting bids is October 15. The bids will be opened on October 22,” Ved Prakash Dudeja, Vice Chairman, Railway Land Development Authority (RLDA) told Moneycontrol.
“The land parcel, spread over 15.27 hectares in the heart of Delhi, is under residential land use. It consist of some old railway houses. In lieu of the land, the developer will have to construct 700 quarters for railways,” he said.
The available floor space index (FSI) is three. FSI is the area on which a real estate developer is permitted to construct on a plot. It is the ratio of the total floor area of the structure compared to the total plot area.
The plot qualifies for Transit Oriented Development (TOD) also. It will be eligible for FSI of four as soon as the policy is approved. There are two Metro stations located close to the plot - Pul Bangash and Pratap Nagar.
TOD is a type of urban development that maximises the amount of residential, business and leisure space within walking distance of public transport.
The development format chosen by RLDA is the joint development model. Under this model, the commercial consideration of land premium is to be paid to RLDA in eight instalments over seven years, with a two-year extension option.
The developer for the site will be selected through the e-tendering process by the development authority, with the land premium as bid variable.
The reserve price for the Karol Bagh-Kishanganj site has been pegged at Rs 1,862 crore, with an effective realisable FSI of approximately 3.5 as the developer would also have to construct 15 percent housing for those falling in the economically weaker section (EWS).
“15 percent more FSI is available for EWS housing. Half of EWS housing would be allotted to Delhi Development Authority (DDA) and the other half by the developer,” Dudeja said, adding that as much as 10 percent of FSI available on the plot can be used for commercial development.
Approval plans may take six to eight months, with construction beginning by the middle of next year, he said.Not worried about slowdown blues
While Dudeja concedes to the slowdown in the real estate market, he is optimistic that private developers would come forward to bid in view of the recent policy changes and incentives that have been doled out to the sector.
Interestingly, Unity Group’s Amaryllis project is located in the vicinity, with prices starting at Rs 1.85 crore.Future plansRLDA is in the process of preparing a detailed project report (DPR) for projects in Mumbai, Chennai and Katra in Jammu. “In Mumbai, we are redeveloping railway colonies. We have land parcels in Chennai and also in Katra, Jammu which is now open for investment after abrogation of Article 370,” he said, adding all these are located in prime locations. Dudeja said that bids for all these will be opened in the next two-to-three email@example.comGet access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.