State set to give ₹1,000-crore boost to stuck SRA projects

The Maharashtra government is set to pump in around ₹700 crore-₹1,000 crore as ‘stress funds’ to revive slum projects which are stuck due to monetary issues. Around

The Maharashtra government is set to pump in around ₹700 crore-₹1,000 crore as ‘stress funds’ to revive slum projects which are stuck due to monetary issues. Around 370 projects have been put on hold as builders do not have money to complete the projects, leaving the slum-dwellers in a lurch.

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According to state housing minister Jitendra Awhad the step is being taken to boost the realty sector. “This stress fund will help to revive slum rehabilitation projects which are stuck, and give relief to both the slum-dwellers and builders,” said Awhad. He said the Slum Rehabilitation Authority (SRA) will tie up with the State Bank of India (SBI) in this venture.

Currently, there are 3.5 lakh houses being constructed under SRA, of which majority of projects are in limbo.

“The realty sector, especially the projects under SRA scheme, was facing monetary issues and Covid-19 has worsened the situation. This stress fund will provide some respite to the builders,” said Nayan Shah, president of Maharashtra Chambers of Housing Industry (CREDAI-MCHI).

Real estate lawyer Vinod Sampat said, “Just pumping in funds will not serve any purpose as SRA scheme suffers from corruption and large scale manipulation. These need to be addressed.”

With only 2.06 lakh families getting new apartments over 23 years, the SRA scheme to free Mumbai of slums seems to heading nowhere. SRA said there are 12.50 lakh slums with 62 lakh residents in the city. If the current speed is maintained wherein an average of 8,963 families get homes every year, it will take more than a century to rehabilitate all existing slum-dwellers.