Uttar Pradesh government on Wednesday announced incentives for private developers building townships in the State. Under the New Township Policy 2023, the developers will receive relief in the form of a reduction in the conversion fee for land use. For townships developed in areas with a population of more than five lakhs and less than 10 lakhs, there will be a 25% rebate in the conversion fee for land use, while for areas with a population of less than five lakhs, the reduction will go up to 50%.
“Considering the new challenges of urbanisation in Uttar Pradesh, the Yogi government will provide various incentives to private developers investing in the State under the New Township Policy 2023. Under this policy, the developers will receive the most significant relief in the form of a reduction in the conversion fee for land use. For townships developed in areas with a population of more than five lakhs and less than 10 lakhs, there will be a 25% rebate in the conversion fee, while for areas with a population of fewer than five lakhs, the reduction could go up to 50%. Furthermore, private developers will be eligible for township development,” reads a statement issued by the U.P. government.
“The aim is to provide affordable housing to different sections of the society, control haphazard development in the peripheral areas of cities, improve the quality of urban life, and attract investments,” it adds. Township with a land area of less than 50 acres will be allowed for residential use. In the policy, if a township’s land area is less than 50 acres, it will only be permitted for residential use. However, if the township’s land area is 50 acres or more, it will be allowed for agricultural use as well, subject to the necessary procedures for converting it into residential land.
As per the Foreign Direct Investment (FDI) Policy issued by the Indian government’s Ministry of Commerce and Department for Promotion of Industry and Internal Trade (DPIIT), the facility of FDI will also be made available. A green channel will also be set up for various approvals related to the project, through which all approvals and objections will be issued via a ‘Single Window System’.
