Rajasthan Drafts Affordable Housing Incentives for Builders

Rajasthan’s urban development department has drafted amendments to the Mukhyamantri Jan Awas Yojana, proposing additional buildable area and a 100% exemption from several levies to encourage private builders to develop affordable housing for economically weaker sections (EWS) and lower-income groups (LIG).

The proposed changes are aimed at attracting developers while improving access to affordable housing. The draft will be discussed by the government before being formally notified.

“We have drafted a few amendments to the existing Rajasthan Mukhyamantri Jan Awas Yojana. The proposals will now be discussed before govt notifies them,” a senior urban development department official said.

Additional buildable area and fee exemptions

The draft proposes an additional 1.0 Buildable Area Ratio (BAR) for EWS and LIG housing. Individual residential projects could receive additional BAR ranging from 0.75 to 2.0, depending on the height of the building.

The government has also proposed a 100% exemption from several levies, including land conversion charges.

Officials said the proposed incentives could improve the financial viability of affordable housing projects.

“The intention is to attract builders and ensure faster creation of affordable stock,” an official said.

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Affordable units to be located closer to main projects

The proposed amendments seek to regulate the distance between a developer’s main project and the EWS and LIG housing units constructed to meet mandatory requirements.

The draft specifies that such units must be developed within a radius of 2 km to 5 km, depending on the population of the city. The relevant civic authorities will grant the necessary permissions.

Under the proposed provisions:

Cities with populations exceeding 10 lakh will have a maximum distance limit of 5 km.
Cities with populations between 1 lakh and 10 lakh will have a limit of 3 km.
Towns with populations below 1 lakh will have a limit of 2 km.

The changes are intended to address concerns that affordable housing units are frequently developed far from the main projects, limiting beneficiaries’ access to roads, water supply, transport and other basic services.

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