MHADA Government Proposed Joint Venture Option With Landowners

MHADA, which has deposits worth Rs 6,000 crore, will invest the money to construct at least 10 lakh homes in Mumbai Metropolitan Region (MMR) and another five lakh in rest of Maharashtra under this formula.

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MHADA Government Proposed Joint Venture Option With Landowners

To push its flagship project of creating 22 lakh houses by 2022, the Maharashtra government has proposed a joint venture option with landowners. Under the plan, state-run Maharashtra Housing & Area Development Authority (MHADA) plans to team up with private landowners for the construction and sale of housing units to the persons from the Economically Weaker Section (EWS) and Lower Income Group (LIG).

MHADA, which has deposits worth Rs 6,000 crore, will invest the money to construct at least 10 lakh homes in Mumbai Metropolitan Region (MMR) and another five lakh in rest of Maharashtra under this formula.

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A state Housing Department officials told the department has worked out 65:35 formula wherein joint venture option MHADA will be entitled to sell 65 per cent of the homes through lottery system while the private landowner can sell the balance 35 per cent housing units to EWS and LIG. There are large land parcels like 100 to 500 acres in the Mumbai Metropolitan Region.

The officer added, in MMR, many owners want to develop them but do not have the finances. Now, under the new joint venture option policy, MHADA will acquire such land parcels and develop affordable homes.’

The officer said if the landowner does not want to engage in the sale of homes, MHADA will do it and pay compensation to the landowner. The government proposes to provide 2.5-floor space index (FSI) instead of 1 FSI which is currently available. The state cabinet will soon take a decision in this regard. He informed that the construction cost is estimated at Rs 2,800 to Rs 4,000 per sq ft depending on locations across the state for the construction of 400 sq ft which can be sold in the range of Rs 12 lakh to Rs 16 lakh.

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According to the officer, the home buyer will be entitled to a grant of Rs 2.50 lakh of which Rs 1.50 lakh will come from the Centre and the balance Rs 1 lakh from the state. ‘The eligible home buyer can get a long-term loan at 6% per rate of interest,’ he said.

Already the government has taken a decision according to the nodal planning authority status to MHADA for affordable housing development in the state. This is in addition to MHADA being planning authority for projects under the Pradhan Mantri Awas Yojana (PMAY).

Read Also: Wadhwa Group Raised Rs 650 Crore For Panvel Affordable Housing Project

The development will happen as per the development control rules of that particular region but to avoid any conflicts, MHADA will be a part of the planning team and oversee the development, Chief Minister had recently announced.

Source Link- https://www.livemint.com/

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