“We are in the advance stage of finalizing the auction process in consultation with the Delhi development Authority (DDA). We would be ready with the guidelines soon,” the minister said.

The minister informed that the government is also taking suitable steps to increase housing supply for people in middle income group in the Capital. “We have asked DDA to construct large number of flats for middle class population living in Delhi. With land cost hitting the roof and the financial slowdown squeezing the paying capacity of people, the government would take all possible steps to release and develop large chunks of land into affordable residential apartments,” the minister said.

Mr Reddy also said that the urban development ministry is giving final touches to the long pending bill on real estate regulator. “It would be a model bill that would be mandatory for Delhi and a model for other states to incorporate in their state legislature,” he said.

Mr Reddy further said that while the government is trying to pep the dying sentiments in the realty sector, the regular infrastructure needs would also be given a very high priority. He informed that the Planning Commission is considering ministry’s proposal to inject more funds into the existing corpus of Rs 50,000 crore. “We have asked for an additional funding Rs 20,000 to take up additional projects under the flagship programmed of Jawaharlal Nehru National Urban renewal Mission,” he said.

The project, called Thatipur Gandhi Road Project, is a 60:40 collaboration with Patel Engineering and marks the brewing company’s foray into realty business. Sompel, the company in charge of the project, is promoted by Som Distilleries.

Som Distilleries’ chairman and managing director Mr. JR Arora said, “The project is expected to generate a valuation of Rs 2,500 crore in three years. This project will boost the growth of the company further”.
The project is part of the state government’s housing scheme for its employees, wherein the builder is required to construct a certain number of houses.

The cost of the project will be deducted from the amount to be paid to the government, on account of acquisition of the land on a 90-year lease. Mr Arora said that the project will cost around Rs 100 crore, and will be financed through internal accruals, financing from customers, institutional borrowings etc.

The bid comes as a breakthrough for Som Distilleries, which has been looking for opportunities to diversify from the brewing and distilling business. The Rs 200-crore company, which introduced the concept of strong beer in India, has plans to venture into the South Indian beer market.

Though it controls 12% of the country’s premium beer market, the distribution has been limited to the North Indian market up till a few months ago. Now the company is planning to access brewing facilities through bottling contracts, acquisitions and greenfield projects in southern markets.