In this sector, private real estate developers can approach the department to facilitate the development of a new project, without having to form a joint sector company with the state government.

"Based on the fulfillment of certain criteria, such as the reservation of a stipulated number of dwelling units for the low-income group (LIG), the housing secretary would write to the civic body and concerned departments like the Land Revenue department to get the necessary clearances for the project," said Gautam Deb, minister for housing and public health engineering.

"At present, the private players cannot develop projects on land beyond the specified land ceiling norms, but in the sponsored sector, this would be made possible," said Vice-Chairman of state Housing Board D P Jana.

Deb said that a four-member committee has been formed under the chairmanship of ex-chief secretary of the state government Tarun Dutta to study the proposal and it is likely to materialise in next two months.

The Confederation of Real Estate Developer's Association of India (CREDAI) has teamed up with the KMC to partner it in the slum development programme under the JNNURM.

The CREDAI would help the KMC build 6,000 dwelling units near the Bypass that is likely to provide accommodation to around 50,000 people.

"The proposal is being studied and it should be worked out in the next two months. We have set a deadline of 18 months for its completion," said president of CREDAI, Pradeep Sureka.

Sources said that the chief secretary of the state had written a letter to the Housing department, recommending preferential allotment of houses to members of the minority community in real estate projects that come up in the state in the joint sector.

"We have received a letter from the housing department asking us to consider allotment to minorities. But there is no mention of a stipulated reservation," said Sureka.