Realty firm Supertech plans to invest about Rs 4,000 crore to develop low-cost homes as it expects demand for affordable housing to rise after getting infrastructure status in the budget.
Supertech has engaged consultants to raise about Rs 1,000 crore through external commercial borrowing (ECB) to fund the development of 40,000 affordable homes planned over the next four years, its Chairman R K Arora said.
“The affordable housing has got a big boost in the budget this year. We are changing building plans of our existing projects in Greater Noida, Yamuna Expressway, Gurgaon, Meerut and Dehradun to launch low-cost homes,” Arora told.
Asked about the investment, he said: “We already have land. On construction, we will require Rs 3,500-4,000 crore for 40,000 flats”.
He said the company has appointed consultants to raise funds through ECB route.
“We will raise about 25 per cent of the total investment. Rest can be funded through internal accruals and advances from customers,” Arora said.
The affordable housing projects would meet the criteria laid in the Prime Minister’s Awas Yojna (PMAY) so that prospective buyers could get the loan subsidy up to 4 per cent, he added.
The government in the budget announced infrastructure status to affordable housing. It also proposed to amend the Section 80-IBA, relaxing the condition of period of completion of the affordable housing projects for claiming deduction from the current three years to five years.
The size of affordable housing has been increased as now instead of built up area of 30 and 60 sq meter, the carpet area of 30 and 60 sq meter will be counted.
Supertech is fighting a legal battle in the Supreme Court related to its housing project in Noida. In April 2014, the Allahabad High Court had ordered to demolish the company’s two 40-storey towers in a housing project.
The realty firm challenged the high court order in the apex court. The two towers — Apex and Ceyane — have in total 857 apartments, of which about 600 flats were sold.