Delhi CM Pushes for PPP Model to Reform Real Estate Sector

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Delhi Chief Minister Rekha Gupta has called for stronger public-private partnerships (PPPs) to accelerate reform in the city’s real estate sector. Speaking at a recent task force meeting, the Chief Minister said that collaboration with private developers could be the key to resolving long-standing bottlenecks in urban development.

The joint task force, comprising government officials and industry experts, presented a blueprint outlining the top ten challenges facing the capital’s real estate sector. These include delays in the redevelopment of old colonies, insufficient affordable housing, and stalled commercial projects. The report recommended introducing more PPP-based models to fast-track solutions.

Gupta highlighted plans to hand over maintenance of several industrial zones, including Narela and Bhorgarh, to private players under PPP contracts. These partnerships aim to ensure improved cleanliness, safety, and operational efficiency in industrial areas.

The government has already introduced several policy reforms to support these efforts. These include reducing amalgamation charges for commercial plots from 10 percent to 1 percent, and modifying the multiplication factor from two times to 1.5 times the circle rate during auctions. These changes are designed to lower barriers for developers and attract investment into redevelopment projects.

The Chief Minister also pledged that slum redevelopment would be carried out without displacing residents. She said that no slum would be demolished without providing pucca housing to the affected families. A total of ₹700 crore has been allocated to support in situ redevelopment and the construction of additional units under the Economically Weaker Section (EWS) housing scheme.

The reforms will also expand the mandate for green buildings to include residential projects, promote the use of digital tools in the approval process, and ensure fixed timelines for development permissions.

Industry representatives from organisations such as the Confederation of Indian Industry (CII), CBRE, and the Delhi Metro Rail Corporation (DMRC), who were part of the task force, welcomed the recommendations. They believe the shift to PPP models could unlock new potential in stalled and underutilised real estate assets.

The Delhi government aims to make the capital more livable and investment-friendly by streamlining regulations and fostering private participation. The task force’s blueprint is expected to serve as a foundation for further reforms and policy decisions in the months ahead.