Yogi Govt Offers Incentives For Developers Building New Township Policy 2023, Including FDI Facility

The Yogi government in Uttar Pradesh has introduced the New Township Policy 2023 to address the challenges of urbanization in the state. The policy aims to promote affordable housing, control unplanned development in the outskirts of cities, enhance urban living standards, and attract investments. Private developers investing in the state will receive various incentives under this policy.

The most significant relief for developers is a reduction in the conversion fee for land use. Townships in areas with a population of 5 to 10 lakhs will receive a 25 percent rebate, while areas with a population of less than 5 lakhs can get up to a 50 percent reduction. Townships with a land area less than 50 acres are allowed only for residential use, whereas those with 50 acres or more can be used for agriculture too, subject to conversion procedures.

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The policy also allows for Foreign Direct Investment (FDI) in the township projects. A green channel will be established for approvals related to the project, streamlining the process through a 'Single Window System.' The Vice President or Housing Commissioner's approval is required for expanding the township area.

A simplified procedure for license issuance and layout plan approval has been prescribed, with the Vice President and Housing Commissioner authorized to take action. Developers can obtain multiple licenses within the same development area and join multiple consortiums.

Developers or consortiums will have full authority over construction within the licensed area. The authority will not approve proposed maps submitted by other landowners or applicants within the licensed area, except for major development projects. Unauthorized development within the area will be regulated by government authorities.

For land assembly, developers can enter into land pooling and developer agreements with landowners and farmers. The New Township Policy 2023 aims to encourage planned and sustainable urban development while providing affordable housing options to different sections of society.