MHADA homes to fund rural housing schemes
Govt will use proceeds from sale of extra FSI in MHADA colonies to pay for construction of low-cost homes in states villages ……….ANEESH PHADNIS
The state government has finally found a way to fund the construction of 3 lakh low-cost houses in rural Maharashtra by selling extra FSI in MHADA colonies in Mumbai and other towns. The state Cabinet cleared the proposal last week.
According to state housing department officials, MHADA will have to spend over Rs 1,000 crore to construct these houses in rural areas under the Rajiv Gandhi Rural Housing scheme and the Centre-sponsored Integrated Housing and Slum Development scheme.
Originally, MHADA had sought funds from the state government but the finance and planning departments opposed it. So, it was decided to raise funds from the sale of extra FSI proposed for MHADA colonies.
A few months ago the state decided to increase FSI in MHADA colonies to 2.5, but a notification has not yet been issued as the government is still hearing suggestions and objections to the scheme.
MHADA has 104 colonies in Mumbai, the maximum in any city in Maharashtra. MHADA is meant to use the funds generated from the sale of FSI on low cost housing, but is unlikely to spend much in Mumbai. A government source observed, The decision has been taken in anticipation that the extra FSI will fetch MHADA enough funds, but looking at the financial situation, we are unsure of the demand. If that does not happen we will have to use our reserve funds.
The plan involves construction of 1.70 lakh houses in cities like Kolhapur, Solapur, Baramati (NCP chief Sharad Pawars constituency), Yeola, (PWD minister Chhagan Bhujbals constituency), Tasgaon (deputy chief minister R R Patils constituency) among other places.
The Cabinet had sanctioned over Rs 585 crore for the scheme. While the Centre had fixed construction cost of a house at Rs 80,000, work did not progress because of cost escalation of construction material. Now, the state will spend an additional Rs 31,000 to Rs 47,000 per house. The government has also decided to allow 15 per cent commercial exploitation in buildings constructed under the scheme to make it financially viable.
According to housing department officials, MHADA will have to spend over Rs 1,000 crore to construct these houses in rural areas