Rental housing scheme lagging, govt admits | mumbai | Hindustan Times
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Rental housing scheme lagging, govt admits

Four years after it was announced, the state's rental housing scheme for economically weaker sections, is yet to gather momentum. The scheme promises to provide 5 lakh flats in the Mumbai metropolitan region (MMR) in five years.

mumbai Updated: Apr 03, 2012 01:19 IST
HT Correspondent

Four years after it was announced, the state's rental housing scheme for economically weaker sections, is yet to gather momentum. The scheme promises to provide 5 lakh flats in the Mumbai metropolitan region (MMR) in five years.

The state government told the legislative assembly on Monday that of the 225 proposals received from developers, only 17 had been approved. Bhaskar Jadhav, minister of state for urban development, gave this information in reply to a question posed by BJP legislator Devendra Fadnavis. The MLA alleged that the Mumbai Metropolitan Region Development Authority (MMRDA) was taking too long in planning projects.

In 2008, the MMRDA announced plans to build five lakh rental houses in five years. For this, it was to rope in private builders, who would be compensated with extra floor space index for commercial exploitation. One lakh homes were to be constructed each year, with a total of four lakh houses by 2012. Currently, 37,000 flats of 160 square feet each are being constructed.

A state committee, which is expected to take a call on 24 issues such as stamp duty waiver and amalgamation of land, is yet to submit its report to the government. Sources in the urban development department told HT that not many builders were willing to take up the projects because of the slump in real estate business and a lack of investors. Over the past two years, the government has made a budgetary allocation of Rs110 crore for the project.