MoU Signed for Development of WAQF Properties

New Delhi, September 11, 2014 – A Memorandum of Understanding (MoU) was signed here today, between the National Waqf Development Corporation (NAWADCO) and the National Building Construction Corporation (NBCC), for developing the Waqf properties. Dr. Najma Heptulla, the Minister for Minority Affairs and Shri M. Venkaiah Naidu,the Minister for Urban Development were also present.

Speaking on the occasion Dr. Najma Heptulla said NAWADCO has identified several waqf properties including one in Delhi, two in Rajasthan, six in Madhya Pradesh and seven in Karnataka which shall be undertaken for development as institutional and commercial projects. To begin with properties lying vacant will be taken up for easy and early development. She said that two projects in Rajasthan are already under process. One is for a hospital in Jodhpur and another for a school in Ajmer. The Minister clarified that this is a general MoU and project specific agreement will be signed after the completion of basic formalities and processing.

Emphasizing the need for proper utilization of waqf properties to earn proper revenue Shri M. Venkaiah Naidu said that it can contribute immensely for socio economic development of minorities. He said that government views minorities as equal partners in development and nation building.

India has the largest number of Waqf properties in the world. There are more than 4.9 lakh registered Auqaf (waqf properties) and the current annual income from these properties is about Rs.163 crores. Sachar Committee has estimated that such properties, if properly developed, with a minimum return of 10%, would be capable of generating an income of Rs.12000 crore per annum. The total area under waqf properties all over India is estimated at about 6 lakh acres, the market value of which is about Rs.1.20 lakh crores. Many of these properties are on prime land and they have the potential of generating considerable returns, which in turn may be used for socio-economic development of deprived sections of Muslim community.

The Corporation was established as a follow up of Sachchar Committee recommendation in January 2014, with Authorized Share Capital of Rs.500 Crore with a paid up capital of Rs.100 crore. The National Minority Development and Finance Corporation (NMDFC) have 49% shares in this Corporation.

NAWADCO facilitates and mobilizes financial resources for the development of Waqf properties for community development purposes in a joint venture with the State / Union Territory Waqf Boards and the Mutawallis. The Waqf Boards and the Muthawallis were not having the financial resources to develop the properties leading to encroachments.

NBCC is a Navratna Central Government public sector enterprise under Ministry of Urban Development, Government of India having wide and varied business experience and expertise, inter alia, in the field of construction and real estate development. CCI Newswire