Maha govt proposed FDI in the sector for Smart Cities

By Accommodation Times News Services

Image for FDIThe Maharashtra government has in its draft of the new housing policy proposed foreign direct investment (FDI) for the development of special townships. Grant of additional floor space index (FSI),  especially to encourage affordable housing and creation of land bank are among the proposed measures. The policy is currently being circulated among legislators for their views.

The draft has envisaged time-bound approval of clearances, promotion of self-certification and dis-incentivising retention of vacant land and flats in urban areas, through capital value-based property tax with reference to admissible FSI.

The draft policy suggests creation of transfer of development right (TDR) bank, use of TDR to use private land for civic and public amenities with a mechanism to prevent malpractices. It also proposes property value-index based TDR and fungible FSI to augment housing stock for low-income group and middle-income group in specified zones in metropolitan regions.

Draft also suggests states a “mere increase in FSI cannot be a solution for enhancing the affordable housing stock in cities. The FSI can be alternatively defined as a function of supporting infrastructure, which means the permissible FSI should be accompanied by optimum social and civic infrastructure.” These slew of steps will help the state achieve its objective of providing two million houses by 2022 in Maharashtra.

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