The Maharashtra Housing and Area Development Corporation (MHADA) is planning to speed up the construction of affordable housing project in the state by tieing up with private builders or developers with the help of public-private partnership (PPP) models.
The MHADA is also offering attractive proposal to attract builders. It offers floor space index (FSI) of 2.5 in lieu of reserving 50 percent of houses in the project for lower income groups (LIG) and economically weaker sections (EWS). The builder will also be entitled to the concession in development charges and subsidy of Rs 2.5 lakh per each such flat.
Milind Mhaiskar, Vice President and Chief Executive Officer of MHADA, said, “Next week we will call for Expression of Interest from private builders regarding their projects. We expect to get a good response in Mumbai Metropolitan Region and in major cities like Pune, Nashik, and Nagpur, among others.”
“Due to a fall in real estate market, many projects are not taking off. We feel if the builder is guaranteed sale of at least 50 percent of housing stock, they will surely be interested,” he added.
The houses can only be sold as per a list prepared by Maharashtra Housing and Area Development Corporation and at price determined by the housing authority.