BUDGET HOMES: STATE LURES LAND OWNERS WITH SOPS

MUMBAI: Struggling to meet its target of offering 19.5 lakh affordable housing units under Pradhan Mantri Awas Yojana (PMAY) in the next four years, the state introduced a joint venture policy for land owners, offering sops such as floor space index and other incentives. Through this policy, the state hopes to offer 10 lakh budget homes — mostly in Mumbai Metropolitan Region (MMR) — in the next to next one year.

The policy cleared by the state on Tuesday is aimed at encouraging land owners to come forward and offer their lands for building affordable homes. Once a project is completed, 65% of the housing stock will be sold by Maharashtra Housing and Area Development Authority (Mhada). Besides, projects will also get incentives such as interest subvention up to 6.5%, loan support up to ₹2.5 lakh, registration fee waiver for economically weaker home buyers, and development charges waiver under PMAY and state schemes.

“We expect land owners with or without the experience of development to come forward and offer plots for housing projects. Majority of response is expected from MMR. As per joint venture policy, responsibility of project designing, construction, infrastructure for the project, approvals from urban local bodies and project management will be done by Mhada . We expect about five to 10 lakh tenements to get approval in a year,” said Sanjay Kumar, additional chief secretary, housing department.

The land owner will get 35%, in terms of housing stock or profit earned after selling all the houses. The profit sharing ratio can vary, depending on the size and location of the plot, said another department official .