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23rd May 2023
While it primarily focuses on providing affordable housing to individuals and families, it also presents a host of benefits for builders and developers. So, let’s delve into the DDJAY scheme and explore how it positively impacts people’s lives.
Key Highlights of the DDJAY Scheme
Under the terms of DDJAY, developers or builders are permitted to construct housing societies or colonies on land banks ranging from 5 to 15 acres. The most intriguing aspect of this program is that prospective buyers can obtain loans from the top public and private sector banks for up to 75 percent of the property value for plots, and for up to 90 percent of the property value for builder floors and flats. Under this system, buyers are free to buy freehold, loanable, and dispute-free plots. Under the government’s Pradhan Mantri Jan Awas Yojna (PMJAY) credit-linked interest subsidy program, first-time house purchasers are also eligible for an interest benefit of up to 2.35 lakhs. Developers can register four independent floors on each site under the DDJAY program with the inclusion of a lift and stilt parking. Because each floor qualifies for a separate registration, individual bank loans may be obtained for each floor. Each plot has a total FAR of 2.68. 10 percent of the permitted colony’s land must be transferred by the developer or colonizer to the government for the construction and maintenance of community facilities. Only the residential zones of towns, as identified in the master development plans, are permitted to use the town planning system under DDJAY. Only 50% of plots can be given under the Deen Dayal Jan Awas Yojna scheme before they are developed. The remaining 50% of plots are only available for assignment or sale after the township is completed or after acquiring a completion certificate from the Haryana Government’s Director of Town and Country Planning (DTCP). All developers must complete their housing projects within seven years of receiving their license.
The maximum plot area determined under the DDJAY is 150 sq meters and a plot area ratio of 2. Out of the total planned residential area of the city, 30% is allowed under this policy for the development of these plotted colonies.
Enhanced Market Opportunities
DDJAY opens up new avenues for builders by creating a substantial demand for affordable housing. With the growing population and urbanization, the need for affordable homes has witnessed a significant surge. Builders who align their projects with the DDJAY guidelines can tap into this vast market, attracting potential buyers and fulfilling the aspirations of countless individuals seeking affordable housing.
Simplified Approval Process
One of the key benefits of DDJAY for builders is the simplified approval process. The scheme provides a streamlined framework and single-window clearance, reducing bureaucratic red tape and expediting project approvals. This efficient system ensures that builders can commence construction swiftly, saving time, effort, and resources.
Cost Benefits
Participating in DDJAY can offer builders several cost benefits. The scheme provides relaxation in various charges, fees, and taxes, which significantly reduces the financial burden on builders. Additionally, DDJAY allows for a higher floor area ratio (FAR) and increased ground coverage, enabling builders to optimize land utilization and maximize their return on investment.
Increased Flexibility
DDJAY provides builders with increased flexibility in terms of plot sizes and dwelling unit sizes. This flexibility allows builders to cater to a diverse range of customer preferences and requirements. By offering a variety of housing options, builders can attract a wider customer base and increase the marketability of their projects.
Collaboration Opportunities
DDJAY encourages collaboration between builders and the government, fostering partnerships that can be mutually beneficial. Builders who participate in the scheme can avail themselves of various incentives and support from the government, such as access to affordable finance, technical assistance, and infrastructure development. Such collaborations can enhance the credibility and reputation of builders, ultimately leading to improved business prospects.
Affordable Housing Options
DDJAY focuses on creating affordable housing options for people from various income groups. It offers economically priced homes that are specifically designed to meet the needs of low and middle-income home buyers. Through the scheme, potential buyers gain access to quality housing at significantly lower costs compared to the open market, allowing them to fulfill their aspirations of owning a home.
Subsidies and Financial Assistance
DDJAY offers various financial incentives and subsidies to home buyers, making homeownership more affordable. Under the Pradhan Mantri Awas Yojana (PMAY) component of DDJAY, eligible beneficiaries can avail themselves of subsidies on home loans, reducing the financial burden of purchasing a property. These subsidies, combined with low-interest rates, make owning a home more feasible and sustainable for buyers.
High-Quality Infrastructure
DDJAY ensures the development of high-quality infrastructure in affordable housing projects. The scheme emphasizes the provision of amenities such as roads, water supply, electricity, and sanitation facilities. Buyers can expect well-planned and well-connected housing complexes that provide a comfortable and convenient living environment for residents.
Legal Certainty and Property Rights
One of the significant advantages of DDJAY for home buyers is the assurance of legal certainty and property rights. The scheme ensures that all properties developed under its umbrella comply with legal requirements and necessary approvals. This guarantees that buyers' investments are secure and protected, eliminating concerns about legal complications or disputes in the future.
Community Development and Inclusivity
DDJAY promotes community development and social integration by encouraging the development of mixed-income housing projects. Such projects foster a sense of inclusivity and create vibrant communities comprising people from diverse backgrounds and income groups. Home buyers benefit from a socially cohesive living environment, fostering a sense of belonging and collective growth.
