Amid reports of private developers backing out of residential and commercial projects in the NCR, a worried Haryana government has announced flexible schemes for payment of licence fee for builders.

It has also extended the licence validity period from two to four years. Amid reports of private developers backing out of residential and commercial projects in the NCR, a worried Haryana government has announced flexible schemes for payment of licence fee for builders. It has also extended the licence validity period from two to four years.

    The recession relief measures follow two months after private developers approached the state government for a bailout package in the light of both residential and commercial projects coming to a standstill in Gurgaon, Faridabad, Sonipat and Rohtak. Licence fee is one of the biggest revenue earners for the state exchequer.

    According to the officials of the town and country planning department (DTCP), the government has not come out with any financial package despite demands from developers. The present package, besides extending validity of the licence period, has also doubled the licence renewal period from one to two years. This means developers will now get more time to start construction work and the renewal fee will come down drastically.

    Private developers as well as government agencies will now need to pay only 25% of the licence fee while applying for a licence. The rest will have to be deposited when the licence is granted. Earlier, the full amount had to be paid while applying.
    The present licence fee for one acre of residential and commercial property in Gurgaon is Rs 2.5 crore and Rs 1 crore respectively.

    The government has also extended the repayment period of external development charges (EDC) to five years, against the earlier limit of four years. EDC had been increased in Gurgaon from Rs 35 lakh to Rs 52 lakh per acre when the realty sector was booming. But with recession, the list of defaulters has increased. The interest rate on repayment of EDC has been reduced from 15% to 12%. As a relief for defaulters, interest rate has been reduced to 15% from
18%.

A department official said the package also includes a moratorium on payment of revised enhancement fee for projects based on 2021 master plans in Gurgaon, Sonipat and Rohtak till July 10, 2009. ‘‘The department issued licences for projects in areas which were earlier not in the plan. But in case of Gurgaon, Sonipat and Rohtak, many such areas have been included in master plans 2021 and hence charges have been enhanced . ,’’ said the official.

    Responding to the plea of developers, the government has relaxed the norm to four equal instalments at 9% interest.

IT’S RAINING SOPS

Developers to pay only 25% of the licence fee to government during submission of project. 75% to be paid at the time of getting licence Validity of licence period extended from 2 to 4 years. Renewal period extended from 1 to 2 years
Period of repayment of external development charges (EDC) extended from 4 to 5 years
Moratorium on payment of revised fee for projects based on 2021 master plans in Gurgaon, Sonipat and Rohtak is till July 10, 2009 and payable at four instalments
Interest on EDC amount reduced from 15% to 12%