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UP Government approves Zero Period Policy that allows waiver of interest on housing projects for disputed period

Builders resided in Greater Noida, Noida, and Yamuna Expressway are at ease as the Uttar Pradesh government has reintroduced the zero-period policy to deal with delayed real estate projects in the area. Under this policy, the government has decided not to accept the penal interest and other dues on contractors for the period during which their projects were delayed due to action over land grant matters. But, the advantage is only applied to builders who give a lettered pledge that they would finish their projects by June 2021. The benefits will ultimately trickle down to homebuyers. Not only will the policy guarantee quick delivery of housing projects that are held for years, contractors are also expected to pass on the interest benefit for the zero periods to buyers. You may be wondering how the zero-period policy will benefit you. To put in laymen terms, during a ‘zero period’, no interest is levied on land allotment charges. Developers in Uttar Pradesh generally buy group housing land by paying 10% of the total land cost and the rest 90% is paid in installments. These funds have to be repaid at a specific rate of profit. If the project gets stuck and the builder defaults on payments due to liquidity crunch or lack of funds, then additional penal interest is levied on the installments delayed. The zero-period policy defines that if housing project was delayed due to the order by a court or if the Real Estate Regularity Authority (RERA) or the National Green Tribunal (NGT), delayed settlement of agreement fulfilling, then the affected period would be granted as ‘zero’. The policy also includes a situation wherein a developer could not start the production due to the lack of an access road or the authority’s negligence to obtain land at the period of handover. Real estate developers are spared from penal interest and dues with few conditions. A developer cannot charge interest from consumers for the zero-period privilege given by the government. The zero-period policy was initiated in 2011-12 in Greater Noida to support the developers whose projects were affected owing to the farmers’ agitation. The zero-period policy is likely to revive projects of many builders who have been categorized as defaulters due to the pile-up of interest. Entering the debtor category implies a contractor cannot get a new construction loan from banks, which affects the fulfillment of housing projects. Under the zero-period policy, the penal interest is dismissed and builders are capable to restructure their investments. It is will help projects become net worth positive to qualify for the Rs 25,000 crore alternative investment fund announced by the central government recently.

December 6, 2019 / 1 Comment / by / in , , ,
Noida-Greater Noida, connecting Gaur City, metro extension accepted by UP govt

metrooo-final-imageToday the construction of the extension line of the Noida-Greater Noida Metro was approved by UP government.
According to the officials of the Noida Metro Rail Corporation (NMRC), the extension metro link will operate between Noida Sector 71 and Greater Noida Knowledge Park–V, joining the twin cities in Gautam Buddh Nagar region adjoining Delhi. The permission for an extension metro rail line was presented during a meeting of the cabinet ministers in Lucknow on Tuesday.
In January this year, the Aqua Line of the metro was introduced which connects Noida and Greater Noida, covering a length of almost 30 km.
The new metro route connecting Noida and Greater Noida will be 15-km long with nine stations between the densely populated regions of Gaur City and Noida Extension to the Aqua Line and adjoining DMRC Blue Line network.
According to a report, the new track would be made in two phases and the complete project would join Knowledge Park V in Greater Noida and Sector 71 in Noida. The current route has 21 stations and operates from the Sector 51 station in Noida to the Depot station in Greater Noida.
Noida and Greater Noida are now united through a Metro network. Beyond any doubt, when compared to Delhi and Gurgaon, property in Noida and Greater Noida in way more affordable. Earlier builders in the region found not many takers for their affordable housing projects for a variety of reasons. The absence of a transport network was the biggest cause why homebuyers were not interested to invest in the past. The metro extension would inspire those reluctant buyers to leave the fence and make a move. The initiation of the new Metro line will also lift the rates of the land in the area, along with its increase in sales.
Since Noida and Greater Noida will get better approachability to the NCR Delhi, property in these areas would become even more profitable as an investment alternative. Delhi where the housing options are very limited and expensive while migrant population numbers rise year after year, more and more people would move to Noida and Greater Noida with increased mobility and the affordable market. With a Metro network in place, traffic on roads would decrease, the traveling will be easier, pollution levels will also come down.
Lots of new projects are also launched in Noida and Greater Noida you can visit and find a suitable property of your taste…

December 4, 2019 / by / in , ,