Odisha government issues new building rules to boost Covid-hit real estate sector

BHUBANESWAR: To push the growth of Covid-hit real estate sector in the state by attracting more investments and to promote affordable housing in urban areas, the state government has come up with a new set of reforms under the Odisha Development Authority (Planning and Building Standard) Rules, 2020.
The new set of reforms provides several exemptions, relaxations and incentives on building norms that will result in easy planning, construction and occupying. It has also introduced many reforms towards the mission: housing for all, by promoting public-private partnership.
Under the new building norms, the state government would give land to realtors free of cost if they develop houses for economically weaker sections in 40 per cent of that land and give it to government for allotment to beneficiaries. They can use the rest 60 per cent land for high-end residential and commercial properties.
“The move is aimed to attract more private partners to come forward to collaborate with the state government in construction of affordable houses for the economically weaker sections (EWS) and low income group (LIG) people. It is a significant step towards the housing for all in urban areas,” said state housing and urban development minister Pratap Jena.
Odisha is reportedly the first state in the country to take such a progressive initiative, said Jena.
While LIG households are defined as households having an annual income between Rs 3 lakh up to Rs 6 lakh, EWS are those having annual income of up to Rs 1.6 lakh (20 per cent more in Bhubaneswar).
The reforms introduced through several relaxations and exemptions are aimed at encouraging construction of large scale high-rise projects to make the housing units more affordable. According to the new rules, 20 per cent of all plotted developments will have to be set aside for EWS and LIG categories.
“The objective behind the new rules is to draw more investments in real estate sector and to facilitate building plan approvals in a streamlined and hassle-free manner,” said Jena.
While different development authorities in the state have different provisions in approval of building plan, these rules are aimed at bringing uniformity. The state government will soon introduce a common online platform for building plan approval throughout the state.
The new rules are also aimed to make construction of houses and obtaining occupancy certification easier while there are provisions for development of commercial use in the residential buildings.
“Some model plans have been introduced according to which people now can start construction of buildings after deposit of required fees and an undertaking. They don’t have to wait till final approval to start construction. Similarly, there is no need of any approval for renovation of old buildings and other minor works,” said Jena.
Relaxations have also been given on building norms like setbacks, approach road and parking. The rules have raised the limits of maximum floor area ratio (FAR) upto seven, which is the highest in the country. It means a developer can vertically construct upto seven times of the land.
The rate of purchasable FAR has been reduced to half that is 25 per cent of the present land value. Necessary fees can also be deposited in instalments.
The new set of rules has made structural stability and fire safety norms non-negotiable. Definition of apartment has been revised as buildings having eight dwelling units will now be termed as apartment against four at present.
Swadesh Kumar Routray, president, CREDAI, Odisha said, “The new rule is a progressive one and will be beneficial to both the realtors and people as well. The reforms in terms of relaxations and exemptions will attract now investments in real estate sectors in the state. Cost of housing units will also be decreased.”
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