More Affordable homes coming up from MHADA and SRA in Mumbai under PMAY

mhadaBy Accommodation Times Bureau

In yet another attempt to beat the space crunch in order to create affordable homes in Mumbai, the state housing department is now considering a proposal to do away with incompetent developers of stalled Slum Rehabilitation projects which are unable to continue. The proposal suggests that the stalled projects will be taken over by the state government and tendered out to other housing agencies. Senior officials said that the projects will be tendered out to other government agencies like Maharashtra Housing and Area Development Authority (MHADA) and Mumbai Metropolitan Region Development Authority (MMRDA).
 Sanjay Kumar, Additional Chief Secretary, Housing Department, hinted that the project will be taken over from incompetent developers and pending dues of the developer will be paid. He said, “After it is realised that the developer is unable to cope up with the project and is seen as incompetent, then his dues will be cleared and we will take over the project from them. The tendering out of these projects to MHADA and MMRDA is a different aspect of the plan which is still under consideration.” Experts said that this will help the government create more affordable houses in Mumbai city. Not a single project was proposed by MHADA in the Mumbai region.
However, the stalled SRA projects that are taken over by the government are likely to get more homes under the PMAY in the saleable component. A senior official from the state government added that once the construction rehab component for slum dwellers is completed, the saleable component will have an extra percentage of affordable homes in it. He said, “The move will help us get more affordable homes under PMAY in the city. Since there is huge space crunch in Mumbai city to build more realty projects, the sanctioning of the proposal will benefit home buyers seeking affordable housing within Mumbai.”
The state government will fund the construction of the rehab component through the Shivshahi Punarvasan Prakalp Ltd (SPPL), whereas, the State Bank of India will give loans to developers of SRA projects to construct saleable component that are stalled due to financial crisis. The government has roped in State Bank of India (SBI) for the project by signing a Memorandum of Understanding (MoU). The bank will issue loans to the developers on a condition. The developers will have to provide certain amount of housing stock to the authorities which will be used for affordable housing.

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