SHOT IN THE ARM FOR CITY REALTY SECTOR

UAE's Emaar Group and United Nations teams to explore investment opportunities in Mumbai The two delegations will discuss their involvement in Mumbai's realty sector for redevelopment and rehabilitation of slums and also for other categories. These agencies may join hands with the government agencies including Maharashtra Housing and Area Development Authority and Slum Rehabilitation Authority. -MINISTER OF HOUSING JITENDRA AWHAD

There was a major breakthrough in the Maha Vikas Aghadi government's move to boost the ailing real estate industry in Mumbai. High-level delegations from United Nations and Emaar Group from United Arab Emirates are meeting the Minister of Housing Jitendra Awhad in the first half of March to explore investment opportunities. Emaar Group may directly invest or through a joint venture while United Nations can provide a long- term loan at low interest rate.

It is important when the MVA government is allowing foreign direct investment (FDI) into the housing sector and it hopes to sign at least one such agreement in the next three months.

Awhad told FPJ, “The two delegations will discuss their involvement in Mumbai's realty sector for redevelopment and rehabilitation of slums and also for other categories. These agencies may join hands with the government agencies including Maharashtra Housing and Area Development Authority and Slum Rehabilitation Authority.”

Last week, Awhad at a realty conclave had said that the government may seek 15 to 20 per cent equity in case any foreign firm approaches it and willing to invest 100 per cent in any project. This is to assure the investing firm the government's support to such projects through clearances.

The decision by UN and Emaar Group teams to visit Mumbai comes against the backdrop of a series of initiatives taken by the state government and Awhad-led housing ministry to revive the realty sector which is on deathbed. Chief Minister Uddhav Thackeray recently met the representatives of the realty sector and formed the committee headed by the chief secretary to seek solutions which will be balanced for both developers as well as the state government.

The realty sector had pressed for a cut in the premium charges, development cess, and Metro cess so that project costs which are very high can come down and developers can survive. Furthermore, CREDAI-MCHI and NAREDCO called upon the state government to implement the unified development control rule as soon as it is possible.

Moreover, Thackeray, NCP chief Sharad Pawar and Awhad last month met top bankers who had assured to provide finance to the realty sector.