Having undertaken no major projects in the city for long, the Jalandhar Development Authority (JDA) is hunting for private land owners to collaborate with it in the city’s development.
The JDA is planning various residential and commercial projects in the city. It is mulling to do so on private land by offering an 80-20 deal — with 80% of the profits going to land owners.
Officials said land owners will have to sign a memorandum of understanding (MoU), become a partner and give development rights to the JDA, which will then take a loan for constructing buildings on the land.
The project will be developed in five years, after which JDA will fix the rates at which plots, houses, institutional and commercial areas will be sold. Land owners will, however, be consulted.
The amount left after covering the cost of land, construction and interest to be paid to banks will be shared as profit between the JDA and the land owners (again on 80-20 basis).
Anupam Kaler, additional chief administrator of the Punjab Urban Planning and Development Authority (PUDA), told HT: “The project will be approved by JDA… it will also definitely increase the market value of the land and make it saleable whenever required.” Kaler said the JDA was in touch with two land owners. PUDA is the parent body of the JDA. Areas outside the municipal limits of Jalandhar, Kapurthala, and Phagwara fall under its jurisdiction.