Mohaan Road project: LDA relaxes norms for bidders

LUCKNOW: The Lucknow Development Authority (LDA) has relaxed norms for private developers willing to bid for its prestigious 764-acre Mohaan Road housing project on Hardoi Road.

The move comes in wake of fears that developers might refrain from the bidding process after being unable to fulfill norms.

The Rs 2,000-crore mega township project would be under the public private partnership (PPP) model.

The LDA’s norms were proving to be an obstacle for private developers. As per the development authority’s criteria, a private developer must have experience

of completing one housing project of 500 acres. But the LDA was finding it difficult to come across such bidders who fulfilled this norm.

Now, the LDA has made room for small developers to bid for the Mohaan Road project.

It will allow private bidders to apply as a consortium and together they could fulfill the criteria of 500 acres.

“Making the bidding process easier, the LDA has decided to allow private developers to bid together as a consortium,” stated AK Singh, executive engineer, LDA, in-charge of the project.

After a slump in the real estate sector, the development authority is finding it difficult to rope in private developers for its various housing projects.

In the Mohaan Road project, private developers would have to pay LDA around Rs 500 crore, an amount paid by the development authority to farmers for acquiring land.

This is apart from Rs 1,500 crore they would have to spend on the project.

In a first, the LDA has decided to have a provision of ‘mixed housing’ in its Mohaan Road housing project to mitigate chances of illegal commercial use of residential properties.

“The provision of mixed housing will be introduced in the Mohan Road housing project,” said MP Singh, LDA secretary.

In this new concept, house owners would be allowed to make commercial use of their residential properties.

The development authority has earmarked 9% of the total 764 acres of the project land for ‘mixed housing’.

However, the cost of such properties will be more than ordinary residential properties in which commercial use will be prohibited.

Fifty per cent of the total land has been earmarked for pure residential purpose, one per cent solely for commercial use, 10% for industrial purpose, 15% for park and open area and 15% for parking of vehicles.