Maharashtra govt's instalment scheme for SRA land premium extended by three years
Private developers in Maharashtra will be allowed to pay the premium cost in three instalments with the facility now extended until September 30, 2025
Mumbai: The state Housing department has extended the instalment facility for payment of land premium for Slum Rehabilitation Authority projects by another three years.
In a government resolution issued on Wednesday, the Housing department has extended the concession given to private developers from September 30, 2022 to September 30, 2025.
In the aftermath of the Covid-19 lockdown which brought the construction activity to a standstill after labourers returned to their native states, the Maharashtra government had allowed private developers to pay the land premium in three instalments in September 2020. They were allowed to pay 10% of the premium cost upfront, and another 10% after a few months, and 80% before the construction work commences.
This facility was extended till March 31, 2021, and further extended till September 30, 2022, and has now been extended for a three-year period.
Satish Lokhande chief executive officer of SRA said, ``The builders wanted deferred payment of premium and had requested the government and the government has approved it.’’
The private developers welcomed the decision to extend the scheme for a substantially longer period. “The decision by the Housing Department to extend the land premium installment scheme is a significant move towards addressing housing challenges faced by economically disadvantaged sections of society. This tailored extension specifically for SRA projects reflects the government’s dedication to promoting affordable housing and inclusive urban development. Approximately 150-200 schemes, currently in progress, are set to benefit from the 10:10:80 plan. Additionally, over 400 existing schemes will face no issues with renewals,” said Domnic Romell, president of CREDAI MCHI, the apex body of real estate industry of Mumbai Metropolitan Region (MMR)
Romell said ‘The extension offers financial flexibility to developers rather than a lump sum and is crucial for developers of SRA projects as margins are thin, and access to capital may be limited.”