Infrastructure status to affordable housing to ensure lower borrowing rates, tax concessions & increased flow of Foreign & Private Capital
The state government is mulling a public private partnership policy under which it plans to acquire land parcels in the MMR region and develop low-cost homes, giving further impetus to its affordable housing programme.
"There are large land parcels like 100 to 500 acres in the MMR region where the owners want to develop them but don't have finances. Also, even if they develop on their own they may get an FSI of 1 or maximum 2.5 and will have to pay premium on that FSI. Now, under the new policy, we are proposing that we will acquire these land parcels through Mhada and develop affordable homes and compensate the land owners," Mehta said.
He said currently discussions on how to compensate these owners, are on.
"It could either be by paying the beneficiary the cost of land as per the ready reckoner rates or build homes for them as compensation. We are yet to come to a conclusion regarding the compensation and are hopeful that we will be able to finalise it in the next 10-15 days. We will then present the policy before of the cabinet for its approval," Mehta said.
The minister added that nearly 10 lakh affordable homes can be built once this policy is in place.
"To avoid any confusion between various government agencies and to streamline the process for creating affordable homes in the state, chief minister Devendra Fadnavis has made it clear that Mhada will be the nodal planning authority. 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," he added.
Currently, Mhada is also the planning authority for projects under the Pradhan Mantri Awas Yojna implemented in the state.
Regarding Dharavi redevelopment, Mehta said the government has decided to separate commercial and residential development on the land.
"Initially we had created five sectors for Dharavi redevelopment, but we did not get any response for it as people thought they were too big to develop. So later we divided it into 12 sectors. This too did not get any response. So now we have decided to make it one sector and commercial development will be separated from residential," he said.
He said the government will invite global tenders for this development and a special purpose vehicle (SPV) will be formed where government will be 51 per cent stake holder.
"By taking 51 per cent stake, we take the major responsibility and help mitigate the risk. We are hopeful that in the next two months the proposal will be finalised," he said.
Mehta further added that the persons affected by the project will be the first to be rehabilitated on the open spaces at Dharavi and only then will redevelopment be taken up.
He further added that the state government is committed to meet its target of building 11 million affordable homes by 2022 and the entire plan will be in place by end of 2018.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)