Sbi join hands with sppl to fi­nance slum re­ha­bil­i­ta­tion projects in Mum­bai

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The State Bank of In­dia (SBI) and Shivshahi Puner­vasan Prakalp Ltd (SPPL), a spe­cial pur­pose ve­hi­cle set up by the state govern­ment to push for slum re­ha­bil­i­ta­tion, have joined hands to fi­nance stuck build­ing projects in the city. The SPPL will fi­nance the re­ha­bil­i­ta­tion com­po­nent of the project and SBI will fi­nance the sales part.

SPPL will fi­nance the project only if the real­tor agrees to build a min­i­mum of 35 per­cent of flats in his freesale com­po­nent, which are clas­si­fied as af­ford­able homes, that

is flats with an area of 30 to 60 The builder will also have to agree to pre-de­ter­mined rates set by the SPPL to sell the af­ford­able homes. SPPL will be pro­vid­ing loan to de­vel­oper at around 8.5 per­cent or the rate at which the cen­tral govern­ment’s un­der­tak­ing, Hous­ing and Ur­ban De­vel­op­ment Cor­po­ra­tion, gives loan to govern­ment agen­cies en­gaged in hous­ing de­vel­op­ment.

There were around 250 slum re­ha­bil­i­ta­tion projects that are stuck at var­i­ous stages of de­vel­op­ment due to fi­nan­cial in­abil­ity of de­vel­op­ers to com­plete the projects, af­fect­ing nearly 50,000 peo­ple, the of­fi­cial records said.

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