PPP model to push further affordable housing plan

Source: The Hitavada      Date: 03 Jun 2018 09:46:57


Staff Reporter,

Pradhan Mantri Awas Yojana to realise dreams of owning a house of EWS, LIG category citizens

With an aim to create 22 lakh houses by 2022, various agencies are working for success of Pradhan Mantri Awas Yojana. Now, to push it further, Maharashtra Government has come up with a Public Private Partnership (PPP) with land-owners.

Under the plan, state-run Maharashtra Housing and Area Development Authority (MHADA) will team up with private land-owners for construction and sale of housing
units to persons from economically weaker section (EWS) and lower income group (LIG).
The construction cost is estimated at Rs 2,800 to Rs 4,000 per sq ft. This will make affordable for a middle class family to buy 400 sq.ft house in a prime localities including Ramdaspeth in just Rs 12 to 15 lakh.

Chief Minister of Maharashtra Devendra Fadnavis, while talking to ‘The Hitavada’, expressed happiness over this development and said, “Owning a house is everybody’s dream. While going for other schemes in PMAY, we came up with PPP which will give a boost to the scheme. We want to bring more people under its fold. I appeal to needy to avail the benefit.”

Under the policy, the State Government will acquire land parcels from private owners for affordable housing projects.
According to MHADA official, the land-owner who applies for this scheme will get Floor Space Index (FSI) which will be doubled without paying a single penny provided the land-owner builds houses.

As per the condition, the land-owner need to offer 100 houses to EWS category citizens who will get subsidy of Rs 2.50 lakh from the Government which includes 1.50 lakh from Centre and Rs 1 lakh from State Government. It may be noted that in Nagpur, MHADA has sent a proposal for 1,350 houses. The eligible home buyer can get a long-term loan at rate of 6% per cent interest.

MHADA at Nagpur has floated tenders and also convened a meeting with CREDAI. Against the backdrop of real estate downfall, the land-owners have the opportunity to grow their businesses.

The Government has created 8 models of which 6 would be set up on public utility land while two would be meant for private land. The department has worked out 65:35 formula wherein MHADA will be selling 65 per cent of the dwellings through lottery system while the private land-owner would sell the balance 35 per cent housing units to EWS and LIG category citizens.

The private developers can participate on the model meant for public utility through tenders. The developer offering maximum houses will be eligible. The price of 50% houses built under these models will be fixed by the Government as per the prices regulated by MHADA. Development Control Regulation (DCR), Development Plan (DP) and Real Estate Regulatory Authority (RERA) will be applicable to the housing projects on both types of models.