As DDA focus shifts, private firms to gain

The recent organisational restructuring proposed by DDA is an indication towards a change in its profile.

With the Delhi Development Authority (DDA) gradually shifting towards the role of a planner and regulator from that of a developer, the land-owning agency is likely to go slow on construction of housing projects and allow private developers to do it instead.

Since its inception in 1957, DDA has been the main player to meet Delhi’s growing housing requirements. I (MINT)

The recent organisational restructuring proposed by DDA is an indication towards a change in its profile.

While urban planners say it is a good move, they say the agency shouldn’t completely give up on developing housing, especially for the economically weaker sections, in the Capital.

Though policies such as land pooling, auctioning of residential plots for group housing, etc., are a step towards encouraging private developers, senior DDA officials say it will continue to develop housing, though on a smaller scale.

A senior DDA official aware of the development said, “No decision regarding not developing housing at all has been taken so far. DDA will continue to develop as per requirement. But it will definitely be less as compared to what we used to. DDA is moving towards the role of a regulator and planner.”

Since its inception in 1957, DDA has been the main player to meet Delhi’s growing housing requirements. It constructed 4.25 lakh flats till last year, and another 40,000-45,000 are ready or in various stages of construction.

DDA has also provided housing to lakhs of people by selling plots to individuals and group housing societies.

Several residential colonies such as Alaknanda, Vasant Kunj, Dwarka Vikaspuri, Mayur Vihar, etc., came up over the years where DDA constructed flats and developed the neighbourhoods.

“But we might not see DDA developing more areas such as Vasant Kunj, etc,” said Balvinder Kumar, former DDA vice-chairman and Uttar Pradesh RERA member. It was during Kumar’s tenure the land pooling policy was approved and the exercise to restructure DDA was undertaken.

Kumar added, “It is important for DDA to move on from its role as a developer to regulator and planner. The land is limited and its acquisition is difficult under the present land acquisition Act. Therefore, it is important to allow private firms to develop and DDA should regulate and ensure planned development in the Capital. There was also a conflict of interest as DDA is both the developer and the regulator.”

The agency has also registered a decline in demand for its flats, as the last three housing schemes received a tepid response.

“This wasn’t the case before 2014. All our schemes have been a huge success. But the past few schemes have not done well. One of the main reasons is the location of these flats. A majority of flats are in Narela and in the absence of a proper transport system, there is little demand for these flats,” said a senior DDA official, requesting anonymity.

DDA had received one million applications for its housing scheme in 2014 in which 25,000-odd houses were put on sale. The agency has over 10,000 flats lying vacant and another 30,000-odd flats in various stages of construction.

Amit Aggarwal, who had bought a DDA flat in sector A, pocket B and C in Vasant Kunj in 1988, said the planning and quality of construction of old DDA flats is very good. “These areas are well developed and the houses are very good. But over the years, the demand has gone down as one can find a bigger flat in the NCR region at the same cost. The cost of the middle income group flats is very high. Earlier, people were keen on a DDA flat because it used to be cheaper than the market rate,” said Agarwal, a member of URJA.

Experts say DDA should continue to construct housing. AK Jain, former planning commissioner, said, “DDA shouldn’t completely give up on constructing housing. They should come up with a policy to ensure private players will provide adequate EWS housing. DDA should continue to construct EWS housing.”

Private developers say DDA’s monopoly was one of the reasons for the shortage of housing in Delhi.

Pankaj Bajaj, president of Confederation of Real Estate Developers’ Associations of India (CREDAI)- National Capital Region and CMD Eldeco group, said, “DDA is making the long overdue transition from a developer to a planner. DDA’s monopoly over development in Delhi was the single biggest factor for the housing shortage and the mushrooming of unauthorised colonies in the last five decades. It led to the rise of Gurugram and Noida, as in the absence of supply in Delhi, development moved to these suburbs.”