Punjab’s long-delayed Economically Weaker Sections (EWS) housing policy has stalled again due to a failure to appoint a transaction adviser to structure the project. Despite having 75 acres earmarked for the first phase, bureaucratic hurdles and poor developer compliance have delayed the initiative, which has undergone multiple revisions since 2008, officials familiar with the matter said.
Event Context
The department floated a request for proposal (RFP) in April this year to appoint a transaction adviser, with bids scheduled to open on May 11. Though 11 agencies expressed interest, the appointment is still pending, officials said.
Principal secretary, department of housing and urban development, Punjab, Vikas Garg, said the process of appointing the transaction adviser was in its final stages. “We are finalising it and expect to complete the process soon,” he added.
The latest delay comes despite the Punjab cabinet approving a proposal in February last year to acquire 1,500 acres across six cities, including Mohali and Ludhiana, for EWS housing. The government also allowed the auction of nearly 700 acres, valued at around ₹2,000 crore, originally reserved for EWS housing in 40 mega projects after private developers showed little interest in constructing affordable housing alongside premium residential projects.
Under the policy, developers must reserve 5% of the gross project area for EWS housing, while group housing projects must earmark 10% of flats for the category. However, compliance has remained poor.
Introduced in 2008, the EWS housing policy has been revised multiple times, including in 2016 and 2021, as successive governments attempt to address implementation gaps. The 2021 revision proposed integrated EWS housing clusters with schools, healthcare facilities and community infrastructure while fixing the annual family income eligibility at ₹3 lakh, but the policy has largely remained on paper.
Match Outlook
The transaction adviser will be responsible for planning and structuring the projects, including determining the number of housing units to develop and preparing the overall implementation strategy.
A senior official in the department said the delay was due to queries raised by bidders during the pre-bid meeting. “The queries are yet to be resolved. We will hold a meeting shortly and expect to appoint the transaction adviser within the next two weeks,” the official said.
According to officials, around 75 acres of land will be taken up for planning and development in the first phase. Overall, the department has access to nearly 519 acres of land, including parcels owned by various development authorities and private developers, which could be utilised for EWS housing.
