Govt. turns towards real estate to improve financial position

We expect ₹15,000 crore from auctioning 12,000 corner sites of BDA, says CM

April 14, 2020 06:45 am | Updated 06:45 am IST - Bengaluru

The State government has also given its nod to auction corner and stray sites in the jurisdiction of various urban development authorities.

The State government has also given its nod to auction corner and stray sites in the jurisdiction of various urban development authorities.

The State government, which is staring at a severe financial crunch due to the lockdown in the wake of COVID-19, on Monday decided to turn to real estate sector and monetise government properties besides allowing real estate growth that would bring in additional financial resources to the treasury.

The major decisions taken by the government include auctioning of more than 12,000 corner sites in Bengaluru to improve the financial position of the State. Similarly, the State government has given its nod to auction corner and stray sites in the jurisdiction of various urban development authorities across the State. “We are expecting generation of about ₹15,000 crore from auctioning sites. We will sell sites only if we get the market value and we are hoping to get a good response for it,” Chief Minister B.S. Yediyurappa told reporters here on Monday.

Meeting held

The decision was arrived at a high-level meeting chaired by the Chief Minister where various proposals to augment financial resources were discussed with Ministers and officials. “COVID-19 situation has thrown our State into deep financial trouble and there is a need to find ways to overcome the present crisis,” the Chief Minister said. “These measures will help the government in mobilising resources for fund starved development works. I have also directed the officials to find ways to improve financial condition in the State,” he added.

The monetisation of real estate will also come in the form of amending the law governing permission to allow sites in private and cooperative housing societies, which will help hundreds of housing societies that are waiting for government approval for releasing the sites. “It was also decided to speed up the disposal of cases related to regularisation of unauthorised constructions that are pending before the High Court and Supreme Court. If the courts decide on the matter, thousands of people owning unauthorised houses will be relieved,” the statement said.

Other decisions

While the State government decided to continue supply of milk for free to slums and poor for one more week, ₹1,000 crore available with the Rajiv Gandhi Health University will be used to upgrade medical college hospitals.

The Chief Minister also directed sugar factory managements to clear the pending payment amounting to ₹2,834 crore towards farmers in 11 districts. “We will have to take action, if direction is not heeded. Farmers are in distress,” he added.

The high-powered meeting also cleared release of ₹45 crore as compensation to paddy farmers in Raichur and Koppal districts where the crop was damaged by hailstorm. The Deputy Commissioners of the districts had submitted a report based on which the decision was arrived at.

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