Ma­ha­rash­tra mulls PPP model to ac­quire land for low-cost homes

The Free Press Journal - - MUMBAI - AGENCIES /

The state govern­ment is mulling a pub­lic pri­vate part­ner­ship (PPP) 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.

The pol­icy is likely to be pre­sented in the cabi­net in a month’s time, state hous­ing min­is­ter Prakash Mehta told reporters on the side­lines of CII event here on Thurs­day.

“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. He fur­ther said Mhada would be the over­all plan­ning au­thor­ity for af­ford­able hous­ing de­vel­op­ment in the state.

“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.

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