Guidelines for PPP under Affordable Housing Mission may be delayed: sources

In what can be a setback for real estate players, the guidelines for public private partnership (PPP) model under affordable housing mission may be delayed, according to sources.

Objections from the state housing boards and developers have come in the way of the guidelines which were expected to be out by July.

The hold up now is that the state housing boards have asked the central government not to give out these land parcels to private developers as the boards want to develop it themselves.

NBCC has also stepped in and said that they would like to be project managers and they will also come up with the design for the projects and sell it too. But, developers are objecting to this as they don't want to give away a portion of their profits to NBCC.

Developers are also seeking clarity from New Urban Development Minister, Narendra Singh Tomar on the guidelines for the PPP Model.

The announcement regarding the PPP Model under the Pradhan Mantri Awaz Yojana (PMAY) which is the affordable housing scheme was announced on June 15.

The PPP model will help developers to develop land parcels in cities or outskirts at an affordable price, which otherwise were expensive. Joining hands with the government would help real estate companies, such as Godrej Properties, Mahindra Lifespaces, Poddar Housing, Tata Housing, Shapoorji Pallonji, get land parcels in prime areas at cheaper rates.