PPP model to further push Pradhan Mantri Awas Yojna

By Vikas Vaidya

With an aim to create 22 lakh houses by 2022, various agencies working for the success of Pradhan Mantri Awas Yojna. Now, to push it further Maharashtra Government has come up with a Public Private Partnership (PPP) to be done with landowners. Under the plan, state-run Maharashtra Housing and Area Development Authority (MHADA) will team up with private landowners for the construction and sale of housing units to the persons from the economically weaker section (EWS) and lower income group (LIG). The construction cost is estimated at Rs 2,800 to Rs 4,000 per sq ft. This will make affordable for a middle class family to buy 400 sq.ft house in a costly area like Ramdaspeth in Nagpur in just Rs 12 to 15 lakh.
Chief Minister of Maharashtra Devendra Fadnavis while talking to ‘The Hitavada’ expressed happiness over this development and said, “Construction of house is everybody’s dream and while going for other schemes in PMAY we came up with PPP will give a boost to this scheme. We want to bring more people in this fold. I appeal that people should avail the benefit.”
Under the policy, the state government will acquire land parcels from private owners for affordable housing projects. According to MHADA official, the landowner who applies for this scheme will get Floor Space Index (FSI) will be doubled without paying a single penny. The condition will be if the landowner build houses then he  should give 100 houses to people with Economically Weaker Section (EWS) who will get the subsidy of Rs 2.5 lakh by Government of which Rs 1.50 lakh will come from the Centre and the balance Rs 1 lakh from the state. MHADA is getting proposals. Recently Nagpur MHADA sent the proposal for 1,350 houses. The eligible home buyer can get a long-term loan at 6% per rate of interest.
MHADA at Nagpur has floated tenders and also convened a meeting with CREDAI. Against the backdrop of real estate downfall, the landowners have the opportunity to grow their businesses.
Government has created 8 models out of which 6 models would be set up on public utility land while two would be meant for private land. The department has worked out 65:35 formula wherein MHADA will be selling 65 per cent of the homes through lottery system while the private landowner can sell the balance 35 per cent housing units to EWS and LIG.
The private developers can participate on the model meant for public utility through tenders. The developer offering maximum houses will be eligible. The price of 50% houses built under these models will be fixed by Government as per the prices regulated by MHADA. The Development Control Regulation (DCR), Development Plan (DP) and Real Estate Regalatory Authority (RERA) will be applicable to the housing projects on both types of models.

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