Patna,(BiharTimes): The state cabinet on Tuesday cleared the urban development department’s proposal to construct 26,730 residential flats and commercial complexes in Patna, Gaya and Muzaffarpur under the public-private partnership (PPP) mode.

Announcing this to the newsmen after the meeting secretary, cabinet coordination, Brajesh Mehrotra said the government would float tenders so that the project can be started at the earliest. It would entail a cost of Rs 9,275 crore and the entire cost would be borne by the developer and the government would not shell out a single paisa.

Of this 12,538 flats would be constructed at seven places in Bahadurpur and Lohianagar (Kankerbagh) in Patna, 12,696 in Katari and Mustafabad colonies of Gaya, while another 1,496 flats would come up at Damodarpur, Muzaffarpur.

Mehrotra further said that the rental flats, slums and janata flats constructed earlier by the Bihar State Housing Board (BSHB) in areas like Lohianagar sector S, T and U and Hanuman Nagar in Kankarbagh would be demolished to build these flats.

The current allottees would be given the possession of the flat first. The remaining flats would be offered through lottery, he said, adding that the apartments would be given on a 30-year lease, which would be renewed upon payment of 10 per cent of the fees.

He said 70 per cent of the area had been earmarked as open area, which would be used for parks and other recreational facilities while the developer would have to carry out construction––both residential and commercial––on the remaining 30 per cent area.

Mehrotra explained that the developer would have exclusive rights to take a decision for the sale of commercial complexes, which would include malls and hotesls, on their own terms and conditions.

These flats would be jointly maintained by the residents’ welfare association and Bihar State Housing Board (BSHB), which would get around Rs 500-600 crore annually as part of maintenance charges.

Incidentally, the residential complexes would have 16-19-storied buildings, which would house two-three-and four-bedrooms units. He said that the rates would be much cheaper than the prevailing prices in Patna. He, however, refused to quantify the rate of the proposed flats under the PPP mode.