CHENNAI: Aiming to create a corpus to finance housing projects for the poor, the State government is toying with a slew of proposals including charging a fee from land development projects, cess on industries above a specified size, and also charging a fee on projects above 10,000 square metre.
Sources told Express that a high-level meeting chaired by the chief secretary, and attended by those including additional chief secretary (finance) and other top officials, would discuss the modalities of creating Shelter Fund to finance affordable housing as announced last year, where these proposals would come up for discussion.
At present, the development regulations mandate that all land development projects measuring over 10,000 sqm should earmark 10 per cent built up area for providing housing for poor, either within the site or within a radius of 2 km. Instead, sources said, plans are on to fix a fee on development above 10,000 sqm on the lines of infrastructure and amenities charges. This can be pooled under the proposed fund that will finance affordable housing for slum dwellers.
Other proposals including charging a general affordable housing fee from all developments having a unit size above 1,000 square feet for residential areas, and from all commercial, industrial and institutional developments.
There is also a proposal to levy shelter cess on industries that employ large number of workers, besides directing companies to contribute 50 per cent of corporate social responsibility fund to shelter fund.
Meanwhile, the State government has asked Slum Clearance Board as well as State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to suggest lands where pilot projects for affordable housing on rental and ownership models can be taken up, sources added.
Tamil Nadu government is planning to create 12.94 lakh housing stock for economically weaker sections in the state under ‘Housing for All’ Mission.