Kolhapur Real Estate Market Blog: Special Township Act Kolhapur!!!

SPECIAL TOWNSHIP ACT granted for Kolhapur City!!!

The state government finally declared Special Townships Act for Kolhapur city. The decision was warmly welcomed by CREDAI Kolhapur. The city limits issue and the affordable housing scarcity in Kolhapur city can now be resolved by developing mega-township projects under this special townships policy act. According to the act, a special township must have minimum of 100acres area, it should provide basic infrastructure like roads, street lighting, water supply, power supply, waste water treatment and at least 20% of the total area should be reserved as Park/Garden/Playground. It should also provide other public amenities like schools, hospitals, cemetery/cremation ground, bus station, fire brigade station, garbage disposal systems, police station, bus station and other public utilities and should be managed and maintained by the developer. In short a private and better management compared to the Municipal corporation management and hence reducing the load on the state government and the local corporation (KMC). The developers are given many concessions according to the policy, some of them are stated below.

SPECIAL Township Policy - concessions given to the developer:

The Government of India has announced its policy to permit 100% foreign direct investment (FDI) for the development of integrated townships. In order to encourage private investment in the housing sector and to facilitate housing at affordable prices, the following incentives will be available for projects under the Special Township Area:
i) Non-agriculture permission will be automatic.
ii) Exemption from Urban Land (Ceiling and Regulation) Act, 1976.
iii) Government land falling under township area shall be leased out to the developer at the current market rate.
iv) The condition that only agriculturist will be eligible to buy agriculture land shall not be applicable in Special Township Areas.
v) There shall be no ceiling limit for holding agriculture land to be purchased by the owner/developer for such project.
vi) There will be floating FSI in the township. Unused FSI of one plot can be used anywhere in the whole township.
vii) The stamp duty rates applicable in the Special Township area shall be 50% of prevailing rates.
viii) A Special Township Project shall be partially exempted from payment of scrutiny fee for processing the development proposal.
ix) 50% concession in payment of development charge.
x) Development of basic infrastructure and amenities.