Magnetic Maharashtra: Mumbai Metropolitan Region may get 5.5 lakh housing units by 2022

The state on Monday inked a Memorandum of Understanding (MoU) with two leading builders’ association

mumbai Updated: Feb 20, 2018 10:37 IST
HT Correspondent
HT Correspondent
Hindustan Times
Mumbai,MMR,housing
The state on Monday inked a Memorandum of Understanding (MoU) with two leading builders’ association (HT File Photo)

If the state government’s partnership with the builders bears fruit, the Mumbai Metropolitan Region (MMR) may witness a huge surge in low-cost housing, with 5.50 lakh housing units being added to the city’s landscape by 2022.

The state on Monday inked a Memorandum of Understanding (MoU) with two leading builders’ association — the National Real estate Development Council (NAREDCO) and Maharashtra Chambers of Housing Industry-CREDAI -- to construct 5.50 lakh affordable houses in the MMR that includes Mumbai, Thane, Navi Mumbai and Raigad.

While NAREDCO has committed to 3 lakh affordable houses, the MCHI-CREDAI has agreed to 2.5 lakh housing units.

The MOU specifies the builders will construct affordable houses under the Pradhan Mantri Awas Yojana (PMAY) scheme on their land. In return, the state will facilitate the scheme by giving faster approvals and removing bottlenecks from various projects.

Currently, anyone constructing affordable houses gets tax rebates and the buyers get a subsidy of Rs2.50 lakh from the government. In addition, various banks and financial institutions are now getting on to the bandwagon of affordable houses and investing huge amounts in these projects.

Niranjan Hiranandani, national president, NAREDCO, said that the MOU is a major step towards realization of the goal ‘Housing for All by 2022’. “Builders are ready to construct affordable houses and all they want is ease in approvals. This has been agreed upon by the government,” said Hiranandani.

NAREDCO has committed to an investment of Rs90,000 crore for this project.

Similarly, MCHI-CREDAI, which also signed the MoU, said they will invest Rs75,000 crore in the affordable housing scheme

However housing activists are not convinced about the implementation of this MoU. “Builders will manipulate the scheme and ensure genuine homebuyers are deprived of shelter. All they want is maximization of profits,” said housing activist and advocate Vinod Sampat. “It is not possible to construct 5.5 lakh houses in the next four years. The market situation is very bad and financial situation of builders and homebuyers is very bad,” said housing activist Ramesh Prabhu.

In April 28, 2010, the Maharashtra Government had signed an MoU with MCHI to construct 5 lakh affordable houses within 5 years under the aegis of ‘Homes for All’. It was signed by the then MCHI chief Pravin Doshi and then chief minister Ashok Chavan. The conditions were similar. However, a single unit has not been constructed so far.

First Published: Feb 20, 2018 10:37 IST