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Mhada’s mega budget allots Rs3,900 crore for low-cost homes

mumbai Updated: Mar 28, 2016 22:04 IST
HT Correspondent
HT Correspondent
Hindustan Times
Mhada

With skyrocketing real estate prices and private builders charging exorbitant rates, Mhada houses are in great demand.(HT file)

The Maharashtra Housing and Area Development Authority (Mhada) on Monday unveiled its biggest-ever budget of Rs6,508.19 crore, with a major thrust on creating 10,000 low-cost houses this year in Mumbai, Pune and Konkan regions.

The amount is a huge leap from last year, when the budget was pegged at Rs3,160.55 crore. The agency has reached the amount, as it managed to raise approximately Rs1,200 crore from the sale of apartments in its housing schemes last year.

The budget has allotted Rs3,900 crore for creation of low-cost houses on Mhada land and under the Pradhan Mantri Awas Yojana scheme, including 10,000 affordable homes in Mumbai and Konkan regions. The homes will be sold at subsidised rates through a computerised lottery system.

SS Zende, CEO and vice-president, MMRDA, said, “We have various schemes in the pipeline to construct a huge stock of affordable houses. The approvals will be granted shortly.”

With skyrocketing real estate prices and private builders charging exorbitant rates, Mhada houses are in great demand. In the last eight draws, more than 12.28 lakh applicants applied for the 18,648 houses up for sale. Apart from low pricing, the quality of construction of these houses, too, has improved in the recent years.

To tide over the scarcity of land, Mhada has kept aside Rs257.90 crore for purchase of land from private landlords and other agencies. It has also allotted funds for repair of 680 old structures.

The Congress termed the budget “juggling of figures”. “The government talks of housing for all, but the performance of Mhada in the past two years has been lacklustre. It has no land bank and is in no position to fulfill the budgetary allocations,” said Krishna Hegde, former Congress legislator, who was also a member of Mhada board in Mumbai.