MHADA ties up private builders for affordable houses

Mumbai : In an attempt to provide affordable houses for needy, the state government plans to invite private real estate developers to join hands with the Maharashtra Housing and Area Development Authority (MHADA) to build houses. Informing this in an event, the Maharashtra housing minister Jitendra Awhad said that the MHADA will be happy to tie up with private developers. The government will be equity partners and are willing to take risks. The MHADA plans to pick up equity in these projects and facilitate faster approvals along with providing additional support to the developers.

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While addressing an event, Awhad said, “The day I took charge I had announced I’m pro-builder. I will do whatever it takes to build affordable homes. So far, we have only been facilitator. Now I feel we need to change our approach. I want real estate developers to join hands with us and become equity partners in projects undertaken by MHADA.” The move also comes at a time when the central government focuses on boosting supply of affordable housing projects as part of its initiative “Housing for All by 2022”. Last year, the Union finance minister had announced forming Rs 25,000-crore alternative investment fund (AIF) to finance last mile funding of stalled projects in the affordable as well as mid-income housing category.

Awhad also said the government plans to take away some of the land under Special Economic Zone (SEZ) which has been lying unused to build affordable housing in Maharashtra. When the NDA government came in power at Centre, Prime Minister Narneda Modi announced, Pradhan Mantri Awas Yojana (PMAY) for homeless. The PMAY is an initiative in which affordable housing will be provided to the urban poor with a target of building two-crore affordable houses by 31 March 2022. It has two components: Pradhan Mantri Awas Yojana (Urban) (PMAY-U) for the urban poor and Pradhan Mantri Awaas Yojana (Gramin) (PMAY-G and also PMAY-R) for the rural poor. Of them the Maharashtra aims to develop 19.2 lakh affordable houses in 382 cities across the state by 2022.