To make this possible, the Board has decided to frame a well-considered policy.

The board of directors of the UPHDB resolved to frame the policy during its meeting under the chairmanship of Principal Secretary, Housing, Srikrishna on Monday.

At present, the Board charges 11 to 13 per cent interest on EMIs of allotted properties. Rates vary according to the type and value of the property. “After the market recession, banks have deducted their interest rates on housing loans. At present, the interest rate on housing loans of private banks is less than that of the UPHDB. So it has been decided to reduce rates to attract consumers,” said finance officer UK Gupta.

The Board has also decided to start a scheme to dispose of the properties, which have not been allotted, by auctioning them after freezing their cost.

An UPHDB official said there were around 800 residential and commercial properties of housing board in the state, which have not been allotted for more than 5-10 years.

“With time, these properties will get damaged in absence of proper care. So it has been decided to dispose of these properties at the earliest,” he said.

“The new cost of any such property will be the total of its original construction cost and present value of land,” Gupta said.

The Board has also decided to simplify the rules and norms of Integrated Township Scheme. At present it takes a long time for registration, issuing of license and granting permission for such schemes. “To facilitate investment of private firms for the development of the state, it has become necessary to simplify the formalities so the builders come to UP to start their township,” he said.