Rental housing scheme to change | mumbai | Hindustan Times
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Rental housing scheme to change

The rental housing scheme in the Mumbai Metropolitan Region, which has been stuck because of lack of clarity in policy, is all set to change.

mumbai Updated: Aug 05, 2011 02:06 IST
HT Correspondent

The rental housing scheme in the Mumbai Metropolitan Region, which has been stuck because of lack of clarity in policy, is all set to change.

The government, on Thursday, said it was contemplating increasing the carpet area of the flats (now 160 sqft) and decrease the component to be given to private builders. Currently, the builders can commercially exploit three-fourth of the total construction.

The rest will be given to the government for rental housing. Chief minister Prithviraj Chavan told the Legislative Assembly that the scheme was stuck because of several reasons. “We are trying to resolve the issues at the earliest.”

Chavan was replying to a calling attention motion moved by Kisan Kathore and Devendra Fadnavis. The CM said local self governments, which will provide the infrastructure for these schemes, will be given 90% of the rent collected. All such schemes are based outside Mumbai. “We will ensure that the residents do not claim ownership of the flats. We may also give these houses to local self-governments for accommodating their staff.”

Other than the current nodal planning agency, the Mumbai Metropolitan Region Development Authority (MMRDA), Mhada and Cidco will be roped in to build the houses.

The state plans to create 3.5 lakh flats in this scheme. In 2008, 43 projects got clearance of which 17 began work. As of now, seven projects are on. The MMRDA will charge a rent of Rs 800-1500 per month for each flat.

When Opposition leader Eknath Khadse said the scheme would benefit only developers, CM said the developers were given a more salable component because they owned the land.

“The scheme is good but it did not get the expected response,” said Chavan.