Davos: Urban development minister Kamal Nath has started a review of Delhi Development Authoritys operations that could result in a shift in the land-owning agencys functioning to a public-private partnership model.
At present,DDA undertakes development and construction work on its own but Nath has started consultations on revamping the organization.The minister has already held consultations on the issue with Delhi chief minister Sheila Dikshit and is due to meet Lieutenant Governor Tejinder Khanna next week.Nath confirmed that a review was underway but did not share details.
Though the model is yet to be firmed up,various options are under consideration.For instance,in case of affordable housing and lowincome group (LIG) projects,the private sector could be roped in to develop malls,hospitals and schools along with the apartments.
Another option is to rope in the private sector to build using DDAs land bank.
Though PPP is not new to DDA,Nath said the model proposed by DDA needed to be reviewed and he is going to call for public comments on the subject.
A few years ago,DDA had auctioned a plot in Tehkhand to a private developer to construct 3,500 houses for the economically weaker section.The developer was allowed to retain up to 750 high-category houses having maximum built area of 80,000 sq metres for disposal in the market.
The PPP model was also tried in case of the Commonwealth Games Village where Emaar MGF built the complex on the banks of the Yamuna.DDA,however,incurred losses in the transaction.
Nathwas moreforthcoming on his plansto reviewthe Jawaharlal Nehru National Urban Renewal Mission,whichwasoriginally intended to provide reforms-linked funding from the Centre.While funds were provided,the reforms were not undertaken by municipal bodies.
The minister said a new document would be prepared in the coming months and indicated that funding would be provided to municipal bodies that voluntarily came forward instead of giving assistance to a set of identified bodies.
We cannot do it statewise.After all,whatworksin Indore may not work in Jabalpur.We need to implement the 74th amendment in letter and spirit and empower them, Nath said.
He said that in the absence of a full-fledged plan,the government was unable to utilise the $5.4 billion (around Rs 25,000 crore ) funding from the World Bank.To start with,it will now draw $1 billion (Rs 4,500 crore ) for 24×7 water supply in identified cities.