The Maharashtra government is planning to get into a partnership model with landowners to meet its target of developing 5,00,000 affordable homes in Mumbai and 10,00,000 homes across the state by 2022. The policy will be presented to the state Cabinet in about a month’s time, Prakash Mehta, state housing minister, told reporters on the sidelines of an event hosted by the Confederation of Indian Industry (CII) in Mumbai.
Mehta said in view of rising costs of land, the state government, through the Maharashtra Housing and Area Development Authority (MHADA), would either acquire land or along with landowners, jointly develop the land for affordable housing. He said, “We will take a decision by the end of this month on how to compensate landowners, how we can engage with them or jointly own the land.”
According to Gaurav Kumar, MD & co-head, CBRE South Asia, the government’s proposal, if it is ratified by the Cabinet, would provide a fillip to affordable housing. He said, “This would speed up the process of securing approvals since the MHADA is already a government body. Moreover, the financing challenges are also taken care of if funds are going to be provided by the government through the MHADA.”
With respect to long-pending redevelopment of Dharavi, often tagged as the largest slum in Asia, spread across 530 acres, Mehta said the government has decided to separate commercial and residential development.
He added that a global tender would soon be floated and a special purpose vehicle formed in which the state government would hold 51% stake. “With the majority stake in the project, we will shoulder the major responsibility and help mitigate the risk. We are hopeful that in the next two months, the proposal will be finalised,” the housing minister said.
Source: Financial Express