State govt plans to remove incompetent SRA developers
After rolling out a plan to issue loans to developers of stalled Slum Rehabilitation Authority (SRA) projects, the housing department of the state government is planning to eliminate incompetent developers which are unable to continue the project despite proper funding. The government is planning to consider another proposal to tender out the stalled projects to other government agencies like Maharashtra Housing and Area Development Authority (MHADA) and Mumbai Metropolitan Region Development Authority (MMRDA).
Speaking to the Free Press Journal, Sanjay Kumar, Additional Chief Secretary, Housing Department, said that the project will be taken over from incompetent developers and pending dues of the developer will be paid.
He said, “If it is realised that the developer is unable to continue the project and is incompetent, then his dues will be cleared and we will take over the project from them. Handing over the project to agencies like MHADA and MMRDA is still under consideration.”
This will help the government create more affordable houses in Mumbai city. It should be noted that under the Pradhan Mantri Awas Yojana, there is no project initiated in Mumbai.
It was earlier reported that the state government will fund the construction of the rehab component through the Shivshahi Punarvasan Prakalp Ltd (SPPL), whereas, the State Bank of India will give loans to developers of SRA projects to construct saleable component that are stalled due to financial crisis .
The government has roped in State Bank of India (SBI) for the project by signing a Memorandum of Understanding (MoU).
The bank would issue loans to the developers on a condition wherein they will have to provide certain amount of housing stock to the authorities which will be used for affordable housing.
However, the stalled SRA projects that are taken over by the government are likely to get more homes under the PMAY in the saleable component.
A senior official from the state government said that after constructing rehab component for slum dwellers, the construction of saleable component comprising of affordable homes will be initiated.
He said, “This will help us get more affordable homes under PMAY in the city. While the authorities are facing a space crunch to construct more affordable homes in the city, this step will create more affordable housing stock.”