Housing dept seeks FDI to push Mhada, SRA projects

In a bid to push redevelopment of Maharashtra Housing and Area Development Authority’s (Mhada) cessed buildings and Slum Rehabilitation Authority (SRA) projects,

In a bid to push redevelopment of Maharashtra Housing and Area Development Authority’s (Mhada) cessed buildings and Slum Rehabilitation Authority (SRA) projects, the state housing department is seeking foreign direct investment (FDI) in government-backed housing projects.

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State housing minister Jitendra Awhad on Thursday said the state will open up its Mhada and SRA projects to foreign investors. The state government will provide 20% equity in these projects.

“We are seeking FDI for our projects. We have not selected the projects yet, but investors, who come forward, will be given options. The state will chip in with 20% equity for these projects,” said Awhad, adding the department is looking to get an offer within next three months.

Citing that Dubai-based Emaar Properties is keen on investing in Mumbai, the minister said representatives from the firm would meet chief minister Uddhav Thackeray this month.

There are around 17,000 cessed buildings in the city, most of which are located in south Mumbai. Around 104 colonies in the suburbs belong to Mhada. However, despite the properties being located in prime locations of Mumbai and its suburbs, several redevelopment projects are stuck due to lack of funds.

The department is also expected to take the final decision on the sanctity of tenders for the Dharavi redevelopment project within eight days.

In another major policy decision, Ahwad said Mhada buildings in the city will only be allowed to opt for cluster redevelopment from now on. He also said that the department will have to study the impact of providing 500 sq foot homes to slum-dwellers.