Keen to take advantage of the decision of the United Progressive Alliance regime to allow foreign direct investment (FDI) in the housing sector, the state government plans to set up satellite townships in the public private partnership mode. The Urban Development Department and the Town and Country Planning Department have started the exercise of identifying areas for the townships proposed to be set up in Shimla, Solan, Hamirpur, Una and Mandi districts. The main objective is to reduce congestion in existing towns and check haphazard construction in the periphery. "Instead of allowing apartments to come up without basic amenities, the government wants planned townships which will have facilities for education, health and employment along with other necessities," says Urban Development Minister Sudhir Sharma. The Himachal Pradesh Housing and Urban Development Authority (HIMUDA) will be a facilitator and will not have any active role in the projects. Promoters will have to develop water sources and will not be allowed to tap existing sources. This condition had been imposed keeping in view the shortage of water in the state. He says the townships cannot be set up in the public sector as it requires huge investment and the government does not funds for the purpose. The previous Bharatiya Janata Party (BJP) regime had invited applications for plots and flats through HIMUDA under a demand survey but no serious effort had been made to develop the townships. There were over 72,000 applicants and they had started withdrawing Rs 5,000 submitted with each application. The BJP regime had not directed HIMUDA not to return the amount. The Congress government wants to being in FDI in housing and retail. The BJP is opposed to FDI. The Food and Civil Supplies Minister announced last week that the government would invite big players like Walmart and Metro. Home boom in offing Govt plans satellite townships in public private partnership mode To be set up in Shimla, Solan, Hamirpur, Una and Mandi districts Depts concerned start exercise of identifying areas for townships HIMUDA will be facilitator and will not have active role in projects