Land Scarcity for Mumbai Affordable Housing PMAY Scheme

Even though not a single Pradhan Mantri Awas Yojana project is being initiated in Mumbai, the developers roped in for redevelopment or rehabilitation will be required to reserve 35 per cent of saleable flats for affordable housing.

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Land Scarcity for Mumbai Affordable Housing PMAY Scheme

Mumbai Affordable Housing PMAY Scheme: Even though not a single Pradhan Mantri Awas Yojana project is being initiated in Mumbai, the developers roped in for redevelopment or rehabilitation will be required to reserve 35 per cent of saleable flats for affordable housing. These flats will come under the PMAY scheme that will be sold by the Maharashtra Housing and Area Development Authority (MHADA), considering the demand for the houses.

Due to land scarcity, not a single location in Mumbai was proposed by MHADA for constructing homes under PMAY. However, with schemes like issuing loans at cheaper interest to SRA projects that are stalled due to a financial crisis, the authority has a better chance to get affordable homes in Mumbai.

A senior official from MHADA told, MHADA is looking forward to having better affordable units in the city. With recent schemes to mandate reservation of affordable homes in the saleable unit for developers wanting to take loan, MHADA will have affordable homes in some prime locations of the city.

There are more than 3,500 SRA projects stalled due to financial crisis. These developers would be conditioned to construct affordable units, measuring 30 square meter. Such houses will be sold in a lottery depending on the demand.

These houses will be in demand considering its locations within the city. If there is a higher demand for such houses, then the flats will be offered in the lottery. Most of the projects of the Konkan region have been initiated in the Mumbai Metropolitan Region. MHADA has claimed that nearly 11 projects of the Konkan region have received all approvals. 80 percent of these houses are for the Economically Weaker Section (EWS).

The household income of the beneficiaries of the PMAY scheme should not be more than Rs 25,000, and the affordable unit on sale will be between 30 sq mt and 60 sq mt. A subsidy of Rs 2.5 lakh for each EWS buyer will be jointly shared by the Centre and state.

Source Link- http://www.freepressjournal.in/mumbai/developers-fail-to-reserve-flats-for-pmay-scheme-in-mumbai/1154293

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