According to Ratan Tata, chairman of Tata Sons, the company will set up similar housing projects in other centres in India such as Bangalore, Kolkata, and Assam.  Read more about the Tata Shubh Griha low cost housing project in this story.

The company’s affordable housing project launched in Boisar has attracted interest from all parts of the country, Ratan Tata said in Munnar in Kerala. He was in Munnar to attend the silver jubilee celebrations of the High Range School in Munnar, run by the Tata Group.

The Tata Housing Development Company Limited, which started the ‘Shubh Griha’ project in Boisar, near Mumbai, is offering what the company calls ‘Smart, Value Homes’ to people across India, to start with.

The Tata Group, the first corporate entity to have entered the low-cost housing sector, says it will spread its presence across India – in Tier I cities and Tier II cities.

The ‘Smart, Value Homes’ from ‘Shubh Griha’ in Boisar are priced between Rs 3.9 lakh and Rs 6.7 lakh.

Ratan Tata said that Maldives has expressed interest in the company’s housing project and has invited the Tata Group to introduce the concept in Maldives.

According to him, the consumption of steel in developed countries such as Europe and the United States is expected to reach the pre-recession levels in the next 2 years. The good news at present, he added, is that the market has stabilized, with no sudden drop or cancellation of orders.

Ratan Tata said that a team from Land Rover and Jaguar had visited India in search of components they can source from the country. So far, no decision has been taken on this.

Tata Motors, he disclosed, is planning to adapt the Nano car for the European market. However, it will take at least 2 years for the company to meet all regulatory requirements before the launch in Europe.

The new high-speed, high-horse-power truck that Tata Motors has launched will be marketed worldwide – among the countries would be Malaysia, Indonesia, South Africa, as well as the countries in the Middle East. At present, these trucks are exported to South Korea, according to Ratan Tata.

When asked whether the Tata Group will cut the salaries of its top executives, Ratan Tata said the Group has already taken steps to cut costs as well as avoid wastage.

The Tata Shubh Griha houses will cost between Rs 3.9 lakh to Rs 6.7 lakh, without taking the registration fee into account.

Brotin Banerjee, MD & CEO of Tata Housing, said, “The Tata name will give a lot of surety for people wanting to invest in their first home. It is an innovative sharing scheme with the landowners. We will have control of the project.”

He said that the Tata Shubh Griha scheme would bring in a topline of Rs 100 crore, but did not give any details about the cost of the Tata Shubh Griha project.

The company said it would offer 2500 flats under the Tata Shubh Griha scheme, of which around 1500 would be in the value housing category and the rest would come under affordable housing.

“The affordable housing segment offers better margins,” Mr. Banerjee said.

The company said that the Shubh Griha scheme is targeted at the low-income bracket who live in either rented or company accommodation, and face a huge shortage of houses.

“Our study shows that around 48% of them are currently staying in rented accommodation,” Banerjee said.

Under the Shubh Griha scheme, houses will come in three sizes, a one-room + kitchen of 283 sq ft, a larger one-room + kitchen of 360 sq ft, and one bedroom + one living room + kitchen of 465 sq ft, in the ground-plus-two layout.

Tata Housing plans to expand the Shubh Griha scheme to the South and NCR next.

The Economic Times quoted Mr Banerjee, as saying, “The plan is to later have Shubh Griha projects in Bangalore and Delhi over the next few months. This will depend on factors like how quickly the land is obtained.”

Tata Housing plans to expand the Shubh Griha scheme across India, by 2014. “We plan to enter cities like Nashik and Ludhiana. Today, we have projects in Bangalore, Kolkata, Gurgaon, Pune and Goa,” Banerjee said.

The company will start distributing forms, costing Rs 200, for the Shubh Griha scheme, starting from May 9, 2009, from the State Bank of India.

Tata Housing has said that customers should submit the application form along with the initial booking amount of Rs 10,000, within 20 days of buying the application form.

Customers will need to pay the booking amount through a bank pay order at select branches of the SBI across Mumbai.

As with the Tata Nano, winners will be chosen through a lottery system. The first list and the waiting list will be declared after 15 days of the final booking.

Tata Housing will then send the allotment letters, for around 1000 flats, along with the payment schedule.

The Shubh Griha houses will be ready by 2011. At the time of possession, customers will need to pay the remaining amount.